Any NYC brokers here? How have the recent rent stabilization laws affected the market?
Is the market basically put on hold now? Where are people investing now that stabilized multifamilies are out of the picture? How are brokerages reacting and adapting? Will the laws be repealed? ... just a few questions to hopefully spark discussion
[{"id": "f0pab23", "text": "Terribly. Values down up to 40%", "replies": [{"id": "f0pm6mu", "text": "Do you think investors are more interested in development sites and free market &lt;6 unit buildings now?", "replies": [{"id": "f0pz24x", "text": "Yes. I mean, you can\u2019t increase cash flow on aren\u2019t stabilized property so you\u2019re buying today\u2019s cash flows. Makes sense that they are looking at properties with free market units.", "replies": [], "depth": 3}], "depth": 2}, {"id": "f0ps9wk", "text": "I\u2019ve even seen some multi family notes floating around already", "replies": [], "depth": 2}], "depth": 1}, {"id": "f0q6awu", "text": "Lots of people are choosing to hold and see what happens", "replies": [], "depth": 1}, {"id": "f0qdsci", "text": "30%+ Dip in value for fully stabilized assets. Would be even worse if interest rates weren\u2019t so low.", "replies": [], "depth": 1}, {"id": "f0qe8lm", "text": "Owner and broker here\nIts a good time to buy, prices are dipping in my opinion now is your chance\nI believe the law will be repealed within 3 years.  Makes zero sense long term\nIts a bad time to be a seller. Values have gone down on all my buildings by around 20 percent. Brokers have stopped calling.", "replies": [{"id": "f0qfncn", "text": "is it affecting the market for individual units?", "replies": [{"id": "f0x94ba", "text": "I don't think so.  Its a different market if someones buying a coop or condo as compared to investor for income", "replies": [{"id": "f0yt1ik", "text": "Bummer.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "f0ql78c", "text": "Just curious why do you believe laws will be repealed?", "replies": [{"id": "f0x91rs", "text": "Because the market will dictate it.  Rent stabilization laws to begin with, and the rates that are set is somewhat of a fiasco and joke.  The whole system of setting rental increases has always been a joke.", "replies": [], "depth": 3}], "depth": 2}, {"id": "f0vi6lb", "text": "&gt; I believe the law will be repealed within 3 years.\n\nRationally I agree this should occur once politicians see that their constituents are negatively-impacted more each year, but I'm not confident they'll respond accordingly.", "replies": [], "depth": 2}], "depth": 1}, {"id": "f0qivl3", "text": "From a broker point of view, much harder to sell product. \n\nBuyer pool is significantly decreased with many regulars looking outside NYC (NJ, CT) for projects. If they're looking at assets with &gt;25% stabilization, they want something with a crazy cap rate.\n\nPeople who are still active in the space are usually looking for more diligence than before as well. Affidavits and more proof of past renovations/deregulations.", "replies": [], "depth": 1}]