One of the fun things about living in New York City is peering into the faces of the people you pass and asking yourself, “Are you a millionaire? Are you, sir, with the mustache and tattoos and mustache tattoos? Are you, angry biking lady?” It’s sort of like the grown-up version of Are You My Mother? but whereas the little bird in that famous children’s book has only one mother, NYC overflows with rich people. They’re everywhere, hiding among us. They have to be. After all, who else could afford to buy those massive luxury condos growing up everywhere like weeds?
Well, turns out that the secret ingredient is salt foreign capital.
According to data compiled by the firm PropertyShark, since 2008, roughly 30 percent of condo sales in large-scale Manhattan developments have been to purchasers who either listed an overseas address or bought through an entity like a limited-liability corporation, a tactic rarely employed by local homebuyers but favored by foreign investors. Similarly, the firm Corcoran Sunshine, which markets luxury buildings, estimates that 35 percent of its sales since 2013 have been to international buyers, half from Asia, with the remainder roughly evenly split among Latin America, Europe, and the rest of the world. “The global elite,” says developer Michael Stern, “is basically looking for a safe-deposit box.” … But much of the foreign money is coming in at lower price points, closer to the median for a Manhattan condo ($1.3 million and rising). In fact, if you’ve recently been outdone by an outrageous all-cash bid for an apartment, there’s a decent chance that, behind a generic corporate name, there’s a foreign buyer and an offshore bank account.
Don’t sweat it, normal Americans! We still have options. We can be HUMAN PROPS.
In our super-stratified society, we are used to a certain level of unfairness. If you pay more, you can board a flight first and sit in the increasingly luxurious first class section of the plane while everyone else squeezes into steerage. If you don’t have dollops of dollars, as Josh Michtom notes, there’s probably no hope for you as a consumer, period. But what if you, a middle-class tenant who pays her rent, find yourself living among the super-wealthy because they have invaded your building and then added amenities to which you are not allowed access? Or you’re allowed to live in a fancy-shmantzy new condo, but only if you enter through “the poor door” (!) and stay out of the gym?
In recent years, developers who have earned tax credits by promising to provide affordable housing have built luxury condos with separate entrances and lobbies for the affordable rental units. The so-called “poor door” makes it easier to restrict who gets access to amenities. Last summer, 40 Riverside Boulevard, a luxury condo rising on the Upper West Side, drew criticism for a design in which low-income tenants enter through a separate door and do not share amenities with owners. …
At the Windermere, tenants living in the nearly 140 rent-regulated apartments have been barred from using the new spa with a pool, yoga studio and gym. As part of a $10 million renovation, Stellar Management is also adding a sky lounge, a bar and planters to the roof. Rent-regulated tenants, who pay about $1,000 a month for a one-bedroom, had socialized on the roof for years, but will no longer be allowed to use it when construction is complete.
This brings out my inner banner-waving go-ahead-and-pepper-spray-me revolutionary.
San Francisco is thinking about getting
into the "micro studio" business—just like New York