From the Hamptons to Billionaire’s Row, it’s no secret that the real estate market in New York is slowing down considerably. There is one segment of the market that’s still burning hot, however: the studio and one-bedroom market. And you can thank wealthy men buying small abodes for their young mistresses for that — or so says Richard Kirshenbaum and company.
This “Mistress Economy,” which could also be called “Side Piece Sales,” seems to be growing. “While the market for larger apartments have [sic] stalled, the studio and small one-bedroom market is on fire. Not because of the foreign rich but because younger, better playthings also need a place to live. Why would you be a 20-something living in a luxury building in Manhattan instead of in Williamsburg, unless your parents or a sugar daddy were paying for it?” a real estate agent speculated in the Observer.
It’s a win-win for one percenters with the appetite for hot young things and the cash for property investment. Because when these men’s libidos simmers down later in life, they can always gift these small units to their children or sell them for a profit.
Another trend? It appears that those wanting to feel young again are moving from uptown to downtown. While some opt for buying second NYC homes downtown as small crash pads, others take the full plunge and relocate entirely south of 14th Street.
“Some of my clients are rich but bored and want to feel and look young. They buy the modern apartment and corresponding art for image. Or if someone gets a divorce and they want a new lease on life—excuse the pun—the husband might forsake his old life on Park or Fifth for a modern new apartment for his sexy new plaything downtown,” an agent detailed. [Observer]