by investingnoobhelp
NYC economy is dying for local NYC residents. It might seem okay from any outside view but when you touch base at what’s actually going on here, it looks like the city had been undergoing recession for quite a while.
Real estate(rent/purchase) is too expensive for the average family. Even in the outer boroughs, you’re looking at least $1300 rent for a 1 bedroom in a bad area. Keep in mind this is the lowest rent on the private market that you’ll get. Many New Yorkers are spending more than half of their income on just shelter alone. Low income housing is flooded featuring several families there with long waitlists with over 160,000 people waiting for a spot. NYCHA is severely underfunded and not building enough homes.
Business are dying primarily with the higher cost of rent and increasing minimum wage putting pressure all around them. NYC residents are so focused in tying their budgets to the high rent that they’re not buying enough products for their homes causing more business to dye off quickly. All you see is a lot of small pop-up shops and restaurants that will only be there for a year or two before they close down again to the next pop-up shop.
Landlords aren’t even leasing commercial or retail space much because they don’t even want to get tied down to a “low” rent”. Leading to lots of vacancies in some prime residential areas.
Manhattan real estate value is decreasing dramatically due to the already overwhelming price of living there and the new units coming into supply. Also for the first time in history,NYC is losing population in crazy numbers. Within the past year, NYC has seen over 200k people leave.
I was wondering, if there is an ETF or stock that focuses on NYC local economy to short it.
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Disclaimer: Consult your financial professional before making any investment decision.