From the August issue: Over the course of June and July, Britain roiled international markets by voting to leave the European Union, Italy’s struggling banks pushed the Eurozone closer to a new crisis and the U.S. Federal Reserve voiced fears that global economic growth is on unstable footing. And yet the reaction to all of this by many in New York’s real estate industry was relief.
Eight years after one of the worst financial crises in history, we have become stuck in a perverse dynamic where bad news for the world economy is often good news for the city’s property market. A lot of that has to do with the outsized impact of bond markets on real estate. [more]