Today In HuffPost New York

There are some stories that you just don't know how to respond to.

Consider today's news about plummeting real estate prices in Manhattan. On the one hand -- housing more affordable. Can't be bad.

On the other, you know this translates into lost tax revenue for the city, fewer construction jobs and fewer purchases made by residents who see their major lifetime investment is now worth maybe 25 percent less than they had imagined.

And of course, if you are that homeowner -- or worse, a new investor who just bought your place at the top of the market -- this is the worse news of the weekend. You desperately scan the web looking for a story about a typhoon or the Iranian crackdown or the New York state senate to cheer yourself up.

But still, cheaper apartments mean more college graduates will be able to come here and search for that New York dream. More people will be able to stay in the city when they begin to raise families.

Except where are those kids going to get jobs? And where are we going to find classroom space for more children? Manhattan's public schools are already overcrowded and right now, we don't even have a functioning city school system. Thanks to the state senate. Shouldn't have read that story. Just typhoon news for the rest of the holiday weekend.

And while we're at it, the bottom line on the good news part of the story involves the possibility that with careful shopping, a family might be able to snatch a two-bedroom apartment downtown for less than $1.5 million.

Pardon me while I break out the champagne.

Speaking of different subjects, check out our bloggers. Jerry Capeci, a top organized crime expert, goes behind the scenes for a look at the case against John (Junior) Gotti. Sheryl McCarthy descends into cell phone hell and David Jones talks about "disconnected youth," young men and women who are out of work and not in school. There are about 200,000 of them in New York City.

Comments

[chiquiquita]

Indeed, one has to wonder about the increased cost of ownership (through higher property taxes, higher maintenance fees) and its relationship to falling property prices in Manhattan.
The old theory went that when home prices decreased, rental prices increased. In this economy, both are hurting, resulting in a double whammy for home owners who previously looked to rent-rolls to cover their mortgage payments.
To a large extent, I believe that state policies aimed at increasing already falling state revenue will offset any federal stimulus that your average Manhattan homeowner may get. An $8k tax credit means quite a different thing to a New Yorker looking to purchase an apartment than it does to a prospective buyer in Ohio.