"De-New York" Isn't it attractive anymore?
March 1, 14:44
An increasing number of people are leaving New York due to the corona sickness.
The governor, who became more vulnerable, called for him to return to New York.
"When I come back, let's go out for a meal together and have a drink. I can cook."
We interviewed what is happening in New York, where people from all over the world have gathered as the financial center of the world and the city that transmits cutting-edge culture and art.
(American General Bureau Reporter Toshifumi Oikawa)
Can't you buy even with a budget of 90 million yen?
Christoph (39) and Tiffany (30), who live in Queens, New York.
Working together, Christoph works for an IT company and Tiffany works in finance.
It's been five years since I started living in New York, which I longed for, but now I'm about to move to the neighboring state of New Jersey.
It was more than half a year ago that they started thinking about moving.
He has prepared a budget of about 90 million yen in Japanese yen and is looking for a house, but he says he still can't find the house he wants.
When I asked why, I got a surprising answer.
"I can only go to see my house on weekends for work, but the ones for sale on weekdays sell quickly. All that remains is more than my budget or severely damaged."
It is said that popular properties will sell quickly.
Even though it was New York that I longed for ...
There are several reasons why they want to leave New York.
I work from home almost every day because of the corona virus.
In the future, even if the infection subsides, he will go to work about two days a week.
If I pay a monthly rent of 300,000 yen for a 2LDK room near my office, I've come to think that I should buy a house with a garden in the suburbs.
Moreover, economic activities are restricted by infection control, it is not possible to casually eat at restaurants, and even if you want to see Broadway musicals, the theater will continue to be closed.
He says he can no longer enjoy life in New York.
Christoph
"There is no reason to pay a high rent to live in New York. I see many articles that New York is dead."
Popular even over 90 years old
So where do the people of New York move?
I heard that a house about 25 minutes by car from Manhattan will be for sale.
It was beautifully renovated and unbelievable from the outside, but it was built in the 1920s and is nearly 100 years old.
According to the real estate agent who acts as an intermediary, it is not uncommon for properties over 50 years old to be put up for sale, but rather it leads to a sense of security and credibility that they have lived for a long time.
In addition to the living room, there are 3 bedrooms and a basement, for a total of 8 rooms.
There is also a garage and a garden, which is large enough for a family to live in.
The day we interviewed was a weekend, and more than 20 groups visited for a preview.
Due to the popularity of homes in the suburbs, real estate companies set the price at 58 million yen, which is about 20% higher than the previous market price, but they were still confident that they could find a buyer soon.
Real Estate Manager
"We expect suburban homes to continue to be popular. Many are really trying to move out of New York."
Free for 3 months after moving in
"De-New York" can be seen from the numbers.
According to a survey by a private research firm, New York City's population fell by about 70,000 last year.
According to a real estate company, the vacancy rate of apartments in Manhattan in January was 5.3%, with more than 12,400 vacancy.
Vacancy rates have skyrocketed from 1.7% in January last year, before the corona infection spread.
The vacancy rate was 6.1% in October and November last year, the highest since 1994 when statistics were first collected, but it is still at a high level.
Realtors were visibly influenced.
Douglas Wagner, who has been dealing with real estate in New York for 26 years, said the current situation.
"It's the bottom of the market, a situation I've never experienced before."
In order to find a borrower, I was shown a room in a Manhattan apartment building that was rented out under exceptional conditions.
It is a 2LDK with an area of about 90 square meters and has two bathrooms.
Although it is a new construction that was just completed last year, the monthly rent has been reduced by about 25% to about 300,000 yen in Japanese yen.
In addition, the rent for three months after moving in was made free.
However, of the 103 rooms, more than 80% have not found a borrower.
Concerned about the city's financial deterioration
Some have pointed out that New York's population outflow poses new problems.
Jonas Shinde, the chief economist of a think tank who is familiar with New York City's finances.
Jonas Shinde
"If the situation continues, the city's finances could run out of billions of dollars. The city will tackle this problem and motivate those who have left. Have to"
Shinde is concerned about the city's financial deterioration due to population outflow.
Of the individual income tax, which accounts for about 20% of the city's total tax revenue, 40% is said to be paid by wealthy people with an annual income of 100 million yen or more.
And many of the wealthy people have jobs that allow remote work, such as financial services and consulting, so it is easy for them to leak out.
The impact of population outflow will spread not only to real estate but also to a wide range of fields such as food and beverage and retail, which may lead to a decrease in tax revenue.
I also felt that the Governor of New York said he would feast on a glass when he came back.
What will happen to New York
In New York, vacancies are increasing not only in residential buildings but also in office buildings.
I'm writing this manuscript at the NHK office, but when I look at the building in front of me, there are 3 floors where all one floor is vacant.
Many people say that if the number of infected people decreases due to vaccination with the new coronavirus and economic activity is restored, people will return to New York again.
However, there is some data that interests me.
According to the US Census Bureau's population estimates, New York City's population has begun to decline in 2018.
It seems that the background is soaring house prices and prices.
Even if the corona slump has settled the rise in house prices, lifestyle changes may in turn push the outflow of population further.
New York, a metropolis that has fascinated people around the world, faces new challenges.
Toshifumi Oikawa,
Reporter of the US General
Bureau, joined the Chiba Bureau in
2012,
and after working in the International Department
, from 2018, the US General Bureau