As a real estate attorney based in New York, I have represented hundreds of first time buyers. I have warned folks that real estate is a market and it won’t always go up. Don’t listed to me just look at what the former head of the Federal Reserve stated ” real estate has a long way to go before bottoming out. http://www.reuters.com/article/ousiv/idUSL2146624120070921
I have told clients that real estate brokers and mortgage lenders are inherntly pure ” salespersons”. As such they have a huge monetary stake in ” making the deal”, and that deal may not be in the best interest of a purchaser. Of course there are nice realtors but there job is to “sell, sell and sell they are not ecomomic advisers, nor are they certified finanical planners.
In Manhattan for the last 10 years buying anything resulted in unbridled appreciation ” theres gold in that manhattan” , and as everyone was making money no one complained. That may soon change. ( An un paralled down turn in the financial market not seen since the 1970’s, over mortgaging, tremendous mainteance costs, job layoffs, banking financial lending distress, will erode over priced manhattan real estate).
Increasing as the rest of the country hurts Manhattan has been imune to the down turn. Why?, Largely because the dollar’s poor valuation has enabled euro spectators to capture a piece of the big apple and as such we have vast absentee owners who take up precious space and force full time residents especially the young gay community out of New York. Truth be told alot of Chelsea Boys who were prudent enough to purchase real estate in the last ten years have ” cashed in” on the robust market and are spending down and moving uptown to areas such as Harlem New York, which was historically an African American Community. See;http://www.villagevoice.com/2007-03-13/nyc-life/a-fierce-harlem-reconnaissance/
This is causing the Village and Chelsea traditional New York gay mecca’s to lose some of it’s bohemic artistic vibes , guppies are becoming extinct. http://www.thevillager.com/villager_111/goodbyegayghetto.html
Places that we could hang in a non club enviornment like the “BIG CUP” in Chelsea are long gone as it is more economically benefical for a landlord to have a chain drug or a starbucks in it’s place. ( albeit starbucks is now hurting) see;http://www.abc.net.au/news/stories/2008/07/31/2320363.htm?section=justin
And its not just New York’s gay meccas Washington D.C. is also home to qay flight. In D.C. our community is leaving the Dupon Circle area. See; http://washington.bizjournals.com/rss_promo/ To me, on my travel trips I alway’s looked forward to visiting the gay enclaves, I felt safe there and looked forward to meeting, talking, dining and the party’s that make various american cities so fun. The loss of the gay ghetto’s will certainly impact on gay trave.
Several additional factors will make home ownership for our community increasingly difficult. Many young gay men and women relocated to metropolitan cities like New York for both increased gay friendly city and the employment opportunity.As we know many gay folk are influential and employed in the arts, music, theater, public service,food indusry,entertainment, fashion and similar creative industires. Like it or not Wall Street is the economic engine that drives and propels New York. Many of the anciallary business especially arts, dining ,theater and entertainment thrive as unintended beneficiaries of Wall Street, and now the future is bleak. See;http://cityroom.blogs.nytimes.com/2008/07/17/unemployment-rate-increases-as-financial-jobs-decline/
In summary, overpriced real estate, rising unemployment, financial and banking distress, and a looming recession will make it very difficult on the gay community to live in New York City especially Manhattan. And that is sad. And it’s not just New York see: