00:00For our entire audience of those that are not familiar with your business that you are operating
00:03in the more luxury side of the business. How insulated has that been? You know we do do more
00:08discretionary sales and rentals. You know it's not insulated because we do work with every time
00:15first-time home buyers as well but yes we're known for the luxury but you know 30 percent of our
00:20deals are under a million dollars so you know but we do have the records for the high end of
00:25the
00:25market but we work with everyone rentals studios you name it. So where are you seeing pronounced
00:32pockets of both strength and weakness? How is how I guess diversion have different different
00:36localities? I think the housing market is somewhat it's like a K housing market. The high end is really
00:43doing well. June and July were amazing. People are buying. It's great and then you see this whole
00:48affordability crisis in the United States overall. There's a lack of inventory. You know rates are
00:55higher as you just mentioned. Inflation. You know people can't afford to pay for things. They can't
01:00buy their first time home. Access to housing is now becoming an issue because of these private
01:05listings so now people can't get in to see what's available. I mean it's just all of those things
01:10don't bode well. What's up with that? Is that is that just like a uniquely New York thing since you
01:15don't have this? That's happening everywhere. It's all over the country. Well it's being investigated by the
01:19House committee right now. Elizabeth Warren spoke about it. She's looking into it. The president of the
01:24NAACP Derek Johnson called it out as having concerns for fair housing. There's a company it's
01:31Compass and they have 80 percent market share in New York and large market shares all over the country
01:36and they have this private network where you shouldn't have to know somebody to see the inventory
01:41and so that's being investigated. It's being looked into. The AG is looking into it and so that's another
01:47concern in an environment where already we don't have enough inventory right and so hopefully you know
01:52that will get worked out. Just another little piece to add you know. By the way another fun little piece
01:57to add is the pied-à-terre tax and of course allowing that to go through. How has that been
02:01with with your clients? Well what does the reality look like on the ground for people who are confronting
02:07this? You know we have had some non-residents say they want to sell and they're selling their homes
02:13because they don't want to pay this surcharge and to be clear it is not a one and done. It
02:18is an
02:18annual surcharge that you are going to have to pay and also a lot of residents receive these notices
02:25who are full-time residents here so they're saying you know guilty until proven resident like why should
02:30the burden be on us? We are full-time residents of New York City so it's too soon to say
02:35what will
02:35happen but remember real estate transaction taxes bring in about 2.2 billion dollars of revenue
02:41for the city so if human behavior changes and wealthy people stop buying here then the money they think
02:48they're going to make from this sort of political tax a pied-à-terre tax will go down and therefore
02:53it may even just be a wash so it feels like a punitive tax. I feel like there were better
02:57ways
02:58to get revenue for the city than doing something like this. Is it also increasingly hurt by the
03:03optics of it to have the mayor specifically single out people? Does that increase some of the damage?
03:07It does because look we want successful people to be a part of New York City. They contribute so much
03:13and when did success become such a bad thing? Like why are we saying that's bad? It's a great
03:19thing that people accomplish things and make money and give back like I don't understand this divisive
03:23sort of good bad landlord tenant rich poor you know it's nuanced we should all work together that's
03:29what this country is about. Not to like wildly generalize and go off on a tangent but it also
03:34feels like a generational thing it feels like people who are just graduating maybe feeling a little bit
03:39disillusioned are the ones that are really sort of embracing that mindset but it's also people who
03:43are benefiting from a wealth transfer that's happening right now with silver tsunami so what
03:47is kind of the dividing line of younger generations who are finding themselves with the benefit of their
03:52baby boomer parents money but also sort of pushing back on this idea of you know success and
03:59capitalism and that sort of thing? I think it's they don't get it they don't understand it you know
04:03my daughter's friend the day that the mayor got elected and you know he won and she was so excited
04:07she came in she's like we won and I was like what did you win your parents pay your rent
04:11like what
04:11you know it's it's sort of this you know it's sort of this luxury values they can afford to think
04:17that way of course we want free buses you know they don't understand that you have to pay for
04:22things it's like the rent freeze do you think that's helping the city rents are at an all-time high
04:26right now so we need to have plans that are collaborative versus like dividing and sort of punishing
04:31people you know it's interesting because just from personal experience I'm a renter and my rent is
04:36going up a significant amount and I know my landlord also has rent controlled buildings too
04:40and my brain immediately went there he's trying to offset that how is it I mean maybe it's impossible
04:45to discern but some of the climb in rentals in New York doesn't seem tied to some of the inability
04:50on these controlled housing units to be able to raise the prices yeah I mean the so the rent stabilized
04:55units that freeze is just going to impact like smaller landlords who have a few units and are not
05:00going to be able to afford it and they're not going to be able to maintain those units so you're
05:04really squeezing those landlords but the high-end market has already been you know going up up up
05:09and last year they passed this legislation the fair act where they thought legislators thought that
05:14if they took the onus off of tennis to pay the brokerage fees that that would help rents go down
05:20it's done the opposite and we told them that when we testified at city hall and so now landlords
05:24are just putting that into the rent to make the rents higher and therefore that's all gone up
05:28got to listen to each other a little bit right what are you hearing from politicians that this
05:33midterm a lot of the conversation has been around things like data centers and affordability
05:38is housing been a big topic of conversation are you worried to kind of the the horseshoe of politics
05:43where both sides are sounding more populist on these types of issues yeah I mean it's concerning
05:47I don't think there's enough of a discussion about it about affordability and building and
05:53upzoning things like city of yes which were very helpful to New York that will get more units in the
05:57city I think people don't want to talk about it because they don't know how to solve for it and
06:01it shouldn't be a political topic housing should be something we care about for everyone right so
06:06I don't know how we solve for that myself I would love to be a part of those conversations come
06:10up
06:10with ideas but we have to business community politicians we all have to work together okay I
06:15would also love for you to be part of that conversation what would the ideas be is it things like
06:20removing red tape what are the things those sorts of things like zoning like like being more flexible
06:25and zoning giving incentives to developers so that they build we want more building New York City
06:30but they're not going to do it and lose money they have to have tax incentives to do so a
06:34little
06:35common sense you know I feel like we could have this conversation for an hour I could talk to you
06:38forever
06:39you
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