Manhattan is the most populated it's been since 1960. [1] And the idea that "huge swaths" of apartments are "Saudi Arabian" investments is simply ridiculous. Yes, there are some, in a handful of ultra-luxury buildings, that is far less than 1% of buildings. It doesn't change the social fabric of the city at all.
And the idea that "huge parts of the population" are "wealthy Chinese and foreign" who "don't really work jobs"? This is so utterly and completely false I can't even imagine how you or your friend would develop this idea. I don't know where you're getting your information from, but it's just 100% not true at all.
[1] https://en.wikipedia.org/wiki/Demographic_history_of_New_Yor...
First of all it's a well documented phenomenon that NYC apartments are being bought by wealthy foreigners to invest and/or launder money without actually living there. As a result, these wealthy areas are eerily empty:
"In a three-block stretch of Midtown, from East 56th Street to East 59th Street, between Fifth Avenue and Park Avenue, 57 percent, or 285 of 496 apartments, including co-ops and condos, are vacant at least 10 months a year. From East 59th Street to East 63rd Street, 628 of 1,261 homes, or almost 50 percent, are vacant the majority of the time, according to data from the Census Bureau’s 2012 American Community Survey." [1]
The increasingly empty storefronts in Manhattan are also well-documented. Anyone who's lived in Manhattan for multiple years has noticed this - commercial venues shutting down, and either remaining vacant or being replaced with Chase bank retail branches or megachains.
There are a ton of trust fund kids who don't work, noticeably more compared to any other city I've lived in. Of course it's probably a minority, but doesn't change the reality of it.
[1] https://www.nytimes.com/2014/10/26/realestate/pieds-terre-ow...
The joke is the city is looking into giving "grants" for small businesses to move into storefronts instead of trying to fix the actual issue. Basically just feeding the bubble.
> "In a three-block stretch of Midtown, from East 56th Street to East 59th Street, between Fifth Avenue and Park Avenue, 57 percent, or 285 of 496 apartments, including co-ops and condos, are vacant at least 10 months a year. From East 59th Street to East 63rd Street, 628 of 1,261 homes, or almost 50 percent, are vacant the majority of the time, according to data from the Census Bureau’s 2012 American Community Survey."
The Times quote does not demonstrate your statement. It demonstrates that a significant chunk of a portion of Midtown is owned by largely-absent owners. It does not demonstrate at all that these owners are "wealthy foreigners to invest and/or launder money without actually living there".
I also wonder if you have enough cash to buy and hold NYC apartments, wouldn't your money do better in some sort of a REIT?
The StreetEasy report the article is inspired by actually shows that in 2019 there were more condos sold than completed.
Housing generally underperforms the overall market.
These tall expensive condo towers are like totems to the wealthy absentee residents of New York.
People are saying they can't get an apartment in NYC. Which is met by disbelief by people who actually live in NYC.
I believe this might be due to the fact that people are really saying that they want a, say, lower Manhattan apartment but can't afford the good ones anywhere. These are probably upper middle class people trying to live a bit outside their means. It's not really that they can't afford NYC, they just don't want to live in Harlem. Or even in Brooklyn, which actually has pretty nice apartments. When I look around Harlem or the Bronx, I don't think, "empty".
Not being able to live where the rich people live is not a problem that society should spend much time solving. I'm one of the very comfortable upper middle class. Yet I don't have a Ferrari, nor do I own a condo on Miami Beach. (Or Manhattan for that matter.) That doesn't mean that society has some sort of housing and car imbalance that it needs to address.
There may indeed be an imbalance nationally, but NYC is definitely not any kind of example of one.
Yes there are plenty of bankers, yuppies and Russian billionaires to account for much of the city's real estate volume, if that's your point.