Mad Men Moving to Wall Street Digs?
Now that Wall Street is wounded, everyone’s asking who will snatch up our ever-increasing condo inventory (the units that don’t go rental, that is). Well, the NY Observer predicts that advertising execs will be next in line to buoy the housing market. “The median entry wage for an advertising and promotions manager in New York…
Now that Wall Street is wounded, everyone’s asking who will snatch up our ever-increasing condo inventory (the units that don’t go rental, that is). Well, the NY Observer predicts that advertising execs will be next in line to buoy the housing market. “The median entry wage for an advertising and promotions manager in New York City was $63,780 in 2007, not far off from the $76,230 entry-level wage for a financial manager in the same period,” they report, and $166,400 is the median wage for marketing manager and financial manager. True, advertising might take a hit, too, but “it’s certainly permissible to speculate on which industries in the city can still fund the envy-producing lifestyles that provide the ambitious young worker bee enough liquid cash for a one-bedroom apartment or a no-frills condo in Brooklyn.” Hey, if it makes you feel better.
The Next Condo Buyers [NY Observer]
i do think that a lot of ad guys are more willing to stay in the city with their families. lots of these people have bought in brooklyn. my clients are advertising creatives and they can definitely do make enough money to buy property.
of course they are not getting the crazy bonuses that finance guys do, but as i said yesterday, i really don’t think the finance guys are raising families in brooklyn anyway.
make no mistake, advertising gets crushed during a bad economy. the one area that is growing and will continue to grow is internet marketing. the demand for people in that industry outstrips the applicants, and online marketing has a huge upside.
Sweet!
Yes. Soon you can haz THREE toilets.
Golly. I work in advertising. I make over 100K. Is my day finally here??????
“This is why I can’t understand how some on this blog act as if NYC will just be immune from all that is happening – sorry, but that does not seem possible to me.”
what are you talking about? to my eye, everyone who posts on this site seems to agree that nyc prices are going to suffer — the only areas of disagreement are when and by how much.
it seems like you are just searching for excuses to post “prices will go down” for the 500th time.
P.S. Another group who might be exempt from softening apt market (and are relying on capital to buy a bigger place) are those with family money. But again, in this climate, even the financial cushions some families have are shrinking – I certainly know many people whose families are suddenly in quite a different place if they were relying on their investments to help them through retirement, family assistance, etc. This is why I can’t understand how some on this blog act as if NYC will just be immune from all that is happening – sorry, but that does not seem possible to me. It seems prices **have** to soften considerably.
What gets left out of the discussions of salaries is that there are many people relying on existing capital – not just salaries – to finance purchase of new home. So, these people might in fact have relatively modest salaries but are still looking to buy up Brooklyn real estate. However, for those seeking to trade up from apt to townhouse (even a modest one with rental income – I’m in this group), a big part of the financing that is relied upon is income from sale of the apt. What seems to be happening right now is that apartments are taking a bigger hit than houses, probably due to pure supply and demand – there are just more apartments on the market than houses. But, it seems inevitable to me that eventually, the dampening of the apartment market will affect the townhouse market, esp if salaries are not making up the gap between the apt sale and the townhouse cost. If potential buyers are getting less for their apartments, and are nervous about stagnant wages and/or possibly losing their jobs, how would they possibly stretch to trade up? The only people who are exempt from this argument are those who either are making huge & growing salaries (and there will certainly be fewer of those in the near future) and those who already have cashed out – I doubt there are many in latter category since most people prefer to wait to sell until they’ve identified a new place to buy. In this market, though, esp if you’re going from apt to townhouse, that’s a very risky proposition.
Mr. Bubble has left the building.
I HOPE ad people become the new buyers. Better be ready for some MASSIVE price cuts before we get there though…