New York just can’t seem to slow down the growth of overpriced real estate. In the next few years, some egregiously expensive luxury apartments will make their appearance in the Manhattan market. These include the 220 Central Park South and Nordstrom Tower apartments. But now, the question is: Are there enough rich people to fill this many apartments? The Real Deal explains what many are thinking: “[T]here appears to be too much supply in the uber-luxury segment compared to lower price ranges.” The real estate publication uses what they call “fuzzy math” to break down the inconsistencies in the market. Here’s how they do that: there are at least 99 apartments on the market in New York City priced at $30 million or more , which makes them suspect that only people with a personal wealth of $500 million or more would invest that much in a single “asset” – that points to only 8,410 people worldwide. If developers wanted to sell all of the $30 million-plus apartments they’re building, 1.18-percent of the entire world’s “demi-billionaires” would have to own one of these New York City apartments. Already, 367 “demi-billionaires” own a $30 million-plus apartment in New York City, leaving only 8,043 demi-billionaires to pick up the slack – and not everyone wants to invest in New York City real estate, no matter how many millions they have. “I don’t think I have ever in my career seen such a disconnect between what is desperately needed built and what is being built,” Curbed contributor and numbers guy Jonathan Miller told TRD. The world needs more demi-billionaires, fast.
There aren’t enough rich people in New York for crazy expensive apartments
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