The high cost of gas may keep the New York City real estate market from tanking. The FT recently had a great article here that explained why high oil prices are here to stay (and it’s not because of speculation). If so, people in the suburbs and ex-urbs who commute 30+ miles each way to work are going to have problems. Their only option–move closer to their jobs or to mass transportation. Carpooling and shuttle buses will be inadequate stopgaps. A lot of companies headquartered in remote industrial parks will soon have huge personnel problems when their employees can’t afford to drive to work anymore. Some will relocate to a major metropolitan area with good mass transit. Sound too far-fetched? Saturday’s New York Times had an article here that suggests it’s not. The takeaway? Populations in urban centers are going to rise, which will require more housing than currently exists to absorb them. If so, $1000 a square foot may soon look cheap.
High Oil Prices May Float NYC Real Estate Market
May 19, 2008 by Stephen Diamond
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