00:00I got to say, like, if you really believe that Zoran Mamdani is likely to win and is going to put a cap on the rents that you're allowed to charge for your property, I can imagine you wouldn't want to buy in this market.
00:17I'm not seeing it quite that way. I don't think it's so black and white. I definitely think there's a pause. Anytime you have an election, people sit back.
00:24But just like COVID, there were people that came in and took full advantage and valued that as a very opportunistic time.
00:33But, you know, that kind of taxation and impact does put people on their heels. It does. There's no question.
00:41Well, it's interesting. I mean, I feel like we have had these moments before, whether it's an experience like COVID or it's different, you know, mayoral administrations, if you will.
00:51How does this period in time, though, the conversations that we're having right now around this mayoral election compare to maybe past election cycles?
01:00This is a very historic one. It basically creates a complete antithesis of what this city is based on.
01:10It's a capital hub. And so the legislation and policies that are being introduced while they're idealistic,
01:19I'm not sure they will be fitting for a city that is based on somewhat of a capitalistic drive.
01:25It's Darwinism at its finest, really.
01:27Why are prices so high? I mean, I get that very rich people are going to want to live on, you know, Park Avenue or Riverside Drive.
01:36But New York City is not small. There are millions of apartments here.
01:41How come the average cost is like forty five hundred dollars a month?
01:46I think that we have an inefficiency. We have a sensitivity to pricing right now.
01:53We have an affordability issue and then we have a lack of inventory issue, which keeps the prices elevated for the mainstream market.
02:02The two to four million, which is that main hub that wants to get in, are the ones that are relying on rates.
02:08And when you have inflation driven by tariffs and those rates are not meeting that market, it's a real issue.
02:15It's a divided issue.
02:16You mean two to four million people or are you in that price point?
02:19So what the main so the average group coming in wants to pay two to four million dollars for?
02:26Well, I think New York is very expensive. It's its own ecosystem.
02:29And so what you're looking for is as much space, as you say, the commodity of space.
02:33And that's kind of that market right now in Manhattan. That's how expensive it is.
02:38It's massive, because even if you're making four hundred thousand dollars a year, you're not covering that not welcome to sixty percent of the buyers that took place over three million.
02:47They were all cash, which tells you the segment of the market of wealth.
02:51Well, that's the thing. It feels like cash bids are becoming more and more commonplace.
02:56That used to be a differentiating factor. And now it's almost become the norm, especially when you're talking about that two to four million dollar price range.
03:04Correct. It is. It's a big component of what I think sellers want to meet the market.
03:09I think the problem is there's a supply issue. It's still below historical norms.
03:13And I think that people understand the valuation of getting into a market like New York, even with this kind of policy change that we're looking at.
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