Rental real estate markets experienced a 0.08% dip in vacancy (from 1.34% in December 2010 to 1.26 in January) and 12 month 26% decrease in vacant units as of this past February. This decrease in market supply of rental units has led to some lower income residents of high demand areas, such as New York Chinatown, to complain of pressure from certain real estate firms to sale.
New York Times writer, Michael Powell, discusses some rather unsavory tactics by Madison Capital to push New York Chinatown residents out of their rental arrangements.For developers, the New York Chinatown district is one that is covered with potential dollar signs, as demand for properties in highly attractive areas such as Delancey spills over southward.
NYU students and young professionals are willing to pay much more than many of the lower and fixed income renters can afford. However, residents of the historic New York Chinatown neighborhood view the actions of real estate firms as being overly-aggressive, and even, malicious at times.
For real estate companies, the market trends of Lower Manhattan (which show vacancy rates which have dropped to 0.61% this summer) will bring a demand for high-end rental units. The profits generated from new units in areas such as New York Chinatown are, therefore for some firms, ends which validate any necessary means. But even as the market pressures strain the budgets and wills of many current long-term lower Manhattan residents, others are determined to not become simple relics of the recent past of New York Chinatown.