[Retric]

That’s an odd takeaway from an article speaking of a 22+ rent from increase due to COVID bounce-back. Ultra short term trends aren’t particularly relevant compared to long term trends.

One clear the example of the outsized impact is these buildings bought up air rights from multiple properties. So, they reduced the legally available space. When the city makes space for ~100,000 apartments and actually gets less than 1/10th that it’s a problem.

Another is the extreme cost of the associated tax breaks for affordable housing for minimal gain. The city set the tax break based on price while the number of affordable houses was based on the number of apartments. A seemingly obvious problem looking back, but still a problem for city residents.

[dionidium]

What we're seeing is a return to the long-term trend. Vacancies in Manhattan have hovered around 2% for a long time.

See: https://www.millersamuel.com/files/2022/02/Feb22QNSrent-nyVA...

[Retric]

Which shows how important a seemingly small number of long term unoccupied apartments are.

Another way of looking at 2% vacancy is over 20 years an apartment is vacant less than 5 months. People move, die, go to prison etc, so there is some inherent friction represented in a 98% occupancy rate. Dropping to 1% long term takes more than just higher demand it would require increases in transaction efficiency.

[chii]

the air rights are a bit of a red herring, because if the people in the city chooses to, they can easily abolish air rights, and allow buildings that previously sold their air rights to build it again!

And a couple of tall buildings in manhattan isn't gonna be making any difference. The difference would come from building denser everywhere.

[HWR_14]

That's not how property rights in America work.