Wall Street bonuses won’t save the luxury market, experts say

TRD New York /
Jan.January 12, 2010 03:31 PM

The return of Wall Street year-end bonuses at the end of 2009 isn’t likely to have as much of an effect on the luxury real estate market this year as their disappearance did in 2008, many industry experts say. While incentive pay likely rose 40 percent for last year, according to compensation research firm Johnson Associates, many of the financiers reaping the rewards are still uncertain about the market and more cautious about investing in second and third homes than they would have been two or three years ago. Furthermore, the incentive pay raises are expected to go largely to higher-ups, rather than get spread out amongst mid-level employees who have, in the past, directed their year-end checks toward down payments on new vacation homes. “Maybe the total bonus pool will be larger, but that doesn’t mean that middle management will make out as well as we think they will,” said Jonathan Miller, head of New York City appraisal firm Miller Samuel. “That softens the impact of bonuses on real estate.” Wall Street bonuses, he added, are “not the savior of the luxury market” and are unlikely to have much of an effect beyond Manhattan and its wealthy suburbs. [Forbes]


Related Articles

arrow_forward_ios
(iStock)

Manhattan home sales experience record decline

Manhattan home sales experience record decline
Rent prices are going up while new leases are down

Manhattan, Brooklyn and Queens saw record low leasing activity in March

Manhattan, Brooklyn and Queens saw record low leasing activity in March
Blackstone's Jonathan Gray, Gaedeke Group's Sabine Gaedeke Stener and 44 Wall Street (Credit: Stener by Gaedeke Group; Gray by Drew Angerer/Getty Images, 44 Wall Street via Google Maps)

Blackstone sells office tower at 44 Wall Street for $200M

Blackstone sells office tower at 44 Wall Street for $200M
Presidential elections affect the residential sales market significantly (Credit: Getty Images, The White House)

This is how presidential elections really affect home sales

This is how presidential elections really affect home sales
(Credit: iStock)

Residential rents continue upward march in Manhattan, Brooklyn and Queens

Residential rents continue upward march in Manhattan, Brooklyn and Queens
Presidential elections affect the residential sales market significantly (Credit: Getty Images, The White House)

This is how presidential elections really affect home sales

This is how presidential elections really affect home sales
(Credit: iStock)

Slowing sales and tumbling prices: A decade in Manhattan townhouse sales

Slowing sales and tumbling prices: A decade in Manhattan townhouse sales
Jack Terzi and 23 Wall Street (Credit: Wikipedia)

Jack Terzi finalizes 99-year lease option at 23 Wall Street

Jack Terzi finalizes 99-year lease option at 23 Wall Street
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...