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That’s good to hear, but throughout the USA a good chunk of “millionaires” are in fact “house rich, cash poor” types. With how expensive real estate has become in NYC, how much of that are those types of millionaires? Manhattan probably has the highest share of actual millionaires given how widespread is renting, but in the outer boroughs where there are more houses I don’t think the same applies.
Also, things like inflation and the decreasing value of money over time will increase the “amount of millionaires” simply by the houses showing a higher nominal figure.
This was the case in Zimbabwe a few years ago (see the spoiler.) Millionaires on every corner in Harare, millionaires in Zimbabwe dollars. lol That was the result of hyperinflation.
In Latin America Colombia comes to mind. Many of the simplest things cost millions of Colombian pesos and it isn’t particularly out of reach of many Colombians who themselves are Colombian pesos millionaires. Many of those millionaires have a modest existence not by choice!
Am sorry but you don't know what you're talking about.
There are areas of of Staten Island, Brooklyn and even Bronx where home prices easily are well over $500k or even $1 million. In same boroughs you also have households with highest incomes of NYC.
As for rest of it yes, many in Manhattan below Harlem rent, but they also own. This would be everything from country houses to properties in other states or even parts of world.
Part of this reflects reality that much of not majority of housing in Manhattan is rental. Supply of co-op, townhouses, mansions, and other private homes makes up small percentage of housing in Manhattan. Even current condo building boom has not made huge dent in those numbers.
For above and other reasons you often find those who wish to own either move out to Brooklyn, Queens or Staten Island. This and or simply move to Westchester, NJ, Conn, or LI.
one of the reasons the renters in our apartments in manhattan took the buy our offer and left is they knew and we knew they couldn’t afford to live by central park once they retired and the pay check stopped .
most renters are renters because if they had the resources to be owners they would have been .
so yeah , renters in manhattan tend to have more wealth for a lot of reasons including the fact it can generally be more expensive to live there as well as you have some very wealthy renters skewing the numbers upward
the cpi is not a cost of living index despite its name .
it is a price change index that tracks goods and services over the 1500 mini economies that make this country up .
a cost of living index would have to track only what you buy or use , the number of times you use it and have some quality adjustment to it since higher priced goods tend to see bigger increases but last longer .
inflation is very different for all of us .
as a retiree we no longer do or buy things we used to , so a lot of what we no longer use or spend on offsets what has gone up .
that is very different then someone raising a family .
so for us our biggest jumps have been food , eating out and long term care insurance premium jumps and the cost of my trulicity i take which runs a few thousand a year
cost of housing and rent increases are not big factors for us .
in actuality we have taken very few inflation raises since we retired 9 years ago .
that is very different then the huge jumps our kids have seen raising families.
so inflation is not some one size fits all number , it’s a number that first has to be molded to only you and different stages of life as well as different financial situations change things .
famous studies by ty bernakie and sun life showed the retirees with a fair amount of descretionary spending tend to spend in a smile shape .
they spend more early on in the go go years , then spending drops a lot in the slow go years , then it ramps up on healthcare in the no go years .
so not a lot of inflation adjusting is needed as the stuff no longer done pays for what went up .
but a retiree with no or little discretionary spending does not see much fall off . so they are effected more .
those still younger and raising families are hit the hardest as what they do and buy increases .
so one has to go by their own personal index
I see your argument but I disagree. I think this makes sense in a standard inflationary environment of 2-3% per year but not under high inflation driven by demand growth and sustained by wage growth.
Of course inflation hits everyone different 20% compounded over 3 years is a serious currency devaluation and everyone has felt it one way or another except for everyone but the top few percent.
[quote=BugsyPal;66732698]Am sorry but you don't know what you're talking about.[/youtube]
Whatever you say. It isn’t as if I live in one of the wealthiest areas in the world. Of course not…
Quote:
Originally Posted by BugsyPal
]There are areas of of Staten Island, Brooklyn and even Bronx where home prices easily are well over $500k or even $1 million. In same boroughs you also have households with highest incomes of NYC.
And there are areas near me where homes selling for $5 million, $10 million, $15 million snd + is quite normal and doesn’t raises an eyebrow. This area also has some of the highest household incomes in the USA. Guess what?
Quote:
Originally Posted by BugsyPal
As for rest of it yes, many in Manhattan below Harlem rent, but they also own. This would be everything from country houses to properties in other states or even parts of world.
You turn a blind eye that NYC has the least rate of ownership in the USA.
Quote:
While New York City is largely a city of renters (especially compared to the U.S. as a whole), roughly 1.1 million residents, representing slightly over 30% of all NYC households, own their homes, and these homeowners span the income spectrum.
So basically, higher household incomes doesn’t hold much weight when living expenses are added. Sure, a typical Manhattan household will have a higher household income than in sone random place like Orlando, FL; but is it really as much of a difference as it first seem when, for the sake of argument, a higher percentage of a Manhattan household income goes in expenses vs a lower household income in Orlando?
Anyway, you’re the one the know…
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