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Why NYC will NOT survive the coronavirus: The entrepreneur outlines why the city will be changed forever


James Altrucher, co-owner of a comedy club in town and who describes himself as an angel investor and writer, is among the many who have fled. He is convinced that the city will never recover

A born and raised New Yorker has revealed why the city will never recover from the COVID-19 pandemic, a dark week of looting in June, and its ongoing battle against escalating crime, homelessness, and violence.

James Altrucher, co-owner of a comedy club in town and who describes himself as an angel investor and writer, is among the many who have fled New York City.

He and his family fled to Miami after the riots in June. Looting made them fear for their lives and the safety of their children when people tried to break into his home.

He is convinced that the city will not "jump back" as many claim and explains that unlike earlier times of crisis like September 11th or the crime wave of the 1970s, there is nothing that brings people back now because everyone has it can work remotely.

"Even in the 1970s and 80s when NYC went bankrupt, even when it was the criminal capital of the United States or near, it was still the capital of the business world (which means it was the primary place." Boy People would go to build wealth and find opportunity, ”he wrote on his blog.

& # 39; It was up to date culturally – home to artists, theater, media, advertising, publishing. And it was probably the US food capital.

& # 39; NYC has never been banned in five months. Not in a pandemic, a war, a financial crisis, never.

"In the midst of the polio epidemic, when young children (including my mother) became paralyzed or died (my mother had a bad leg), NYC didn't go through this," he wrote.

THE END OF NYC CULTURE

One of the things that used to draw people to the city is the endless number of attractions. Now all entertainment venues are closed for the foreseeable future.

& # 39; I love NYC. When I first moved to NYC, a dream came true. Every corner was like a theater production going on right in front of me. So much personality, so many stories.

“Every subculture I loved was in NYC. I could play chess all day and all night. I could go to comedy clubs.

“I could start any kind of business. I could meet people. I've had family, friends, opportunities. No matter what happened to me, NYC was a web that I could fall back on and bounce back on.

"Now it's completely dead.

A deserted Times Square on Saturday with a billboard welcoming people to the city. Thousands have fled, crime is rising and concerns are growing about how leaders like de Blasio and Cuomo are responding to the crisis

A deserted Times Square on Saturday with a billboard welcoming people to the city. Thousands have fled, crime is rising and concerns are growing about how leaders like de Blasio and Cuomo are responding to the crisis

"But NYC always jumps back." No not this time.

“But NYC is the center of the financial universe. Here again opportunities will arise. " Not this time.

"NYC has seen worse." No, it didn't, "he wrote.

His comedy club is one of those that have closed.

"It's a great club. It's been around since 1986 and before that it was a theater … we have no idea when we're going to open. Nobody has any idea. And the longer we stay closed, the less chance there is we will ever open again profitably.

This time is different. You should never say that, but this time it's true. If you think this time around is no different, that NYC is resilient, I hope you are right.

Broadway is closed at least until spring. Lincoln Center is closed. All museums are closed.

“Forget the tens of thousands of jobs in these cultural centers. Forget even the millions of dollars in tourist revenue that will be lost due to the closure of these centers.

“There are thousands of performers, producers, artists, and the entire art, theater, production, and curation ecosystem that surrounds these cultural centers. People who have worked their lives for the right to appear once on Broadway, whose lives and careers have been put on hold.

& # 39; I get it. There was a pandemic.

& # 39; But the question now is: what happens next? Given the uncertainty (since no answer is known) and the fact that people, cities, and economies loathe uncertainty, we just don't know the answer, and that's a bad thing for New York City. & # 39;

FASTER INTERNET MAKES WORKING FROM HOME EASIER THAN AFTER 9/11

“I lived three blocks from Ground Zero on September 11th.

“The downtown area where I lived was destroyed, but within two years it roared back. That sadness and hardship and then quickly this area became the most attractive area in New York.

& # 39; And in 2008/2009 during the Great Recession there was a lot of suffering, again a lot of hardship, but things roared back.

& # 39; But … it's different this time. You should never say that, but this time it's true.

"If you think this time around is no different, that NYC is resilient, I hope you are right.

"I don't benefit from saying anything about it. I love NYC. I was born there. I lived there forever. I still live there. I love everything about NYC. I want to go back in 2019."

FILE - A woman in a mask walks her dog past the New York Stock Exchange on Tuesday, June 30, 2020. Wall Street, like the rest of the city, is now a ghost town with more and more people working from home

FILE – A woman in a mask walks her dog past the New York Stock Exchange on Tuesday, June 30, 2020. Wall Street, like the rest of the city, is now a ghost town with more and more people working from home

& # 39; But this time is different. One reason: bandwidth. & # 39;

In 2008, the average bandwidth speed was megabits per second, which wasn't fast enough for a Zoom meeting. Now it's 20 per second.

"There is a before and an after. BEFORE: No remote work. AFTER: Anyone can work remotely. The difference: The bandwidth got faster. And that's basically it. People have left New York City and are completely drawn into virtual worlds.

& # 39; The Time-Life building doesn't need to be refilled. Wall Street can now span any street instead of just being a building in Manhattan.

& # 39; We are officially AB: According to bandwidth. And for all of NYC (the world's) history up to now, we've been BB: Before Bandwidth. Remote learning, remote meetings, remote offices, remote performance, remote everything.

In 2005 a hedge fund manager came to my office and said, “In Manhattan, you practically stumble upon opportunities on the street.” Now the streets are empty.

"It's different," he said.

He later said somberly, "Corporations are remote and don't come back to the office.

"And it's a death spiral – the longer offices stay empty, the longer they stay empty.

"In 2005 a hedge fund manager came to my office and said," In Manhattan, you practically stumble upon opportunities on the street. "

"Now the streets are empty."

Homelessness and crime on the rise

Altrucher also cited a Facebook group where residents expressed their concerns.

In the past week: I saw a homeless man go mad and attack random pedestrians. Including spitting, throwing things and clapping.

"I've seen several single parents with one child asking for money for food. And then when someone gave them food, they threw the food straight back. I've seen a man screaming racist slurs for every single race, while attacking, and then stopping before going too far. & # 39;

Another said, "I've lived in New York City for about 10 years. It's definitely gotten worse and there is no end in sight.

“My favorite park is Madison Square Park. About a month ago, a 19-year-old girl was shot dead across the street.

"I don't think I have an answer, but I think it's clear: it's time to move out of NYC."

"I'm not the only one who feels that way. In my building alone the rent has fallen by almost 30% – more people are moving away than ever before. So …

Homeless in New York City on August 14th. Some residents say they no longer want to stay in New York because the homeless population is growing and becoming more aggressive

Homeless in New York City on August 14th. Some residents say they no longer want to stay in New York because the homeless population is growing and becoming more aggressive

There were more than 60 shootings in New York last week, in which 76 people were injured and 14 were killed. Above is a crime scene on August 16

There were more than 60 shootings in New York last week, in which 76 people were injured and 14 were killed. Above is a crime scene on August 16

"It's not goodbye yet. But a lifelong New Yorker thinks about it."

Altucher said he wasn't tempted to leave until June, when rioting and looting hit the city for a week.

"There was nothing wrong with the protests, but I was a little nervous when I saw videos of rioters trying to break into my building after the curfew," he wrote.

He has now moved to South Florida with his family and is not sure if they will be back.

"I am now temporarily, if possibly permanent, in South Florida. I also did not see my place," he wrote.

Not everyone shares their point of view.

Jamie Dimon, the CEO of JP Morgan Chase, recently said there was still a need to get people back into offices.

Facebook is also investing in New York City to ensure it remains a global business hub.

As the spiral of shootings increases, so does the homeless problem, as camps pop up all over Manhattan. 13,000 homeless people were also taken to hotels across the city

As the spiral of shootings increases, so does the homeless problem, as camps pop up all over Manhattan. 13,000 homeless people were also taken to hotels across the city

In the past five years, the number of shootings in 2018 fell to a low of 754, but is now increasing

The Sergeants Benevolent Association, the NYPD's largest union, supports Trump for re-election. The union is angry with de Blasio for stripping some of the police's resources

The Sergeants Benevolent Association, the NYPD's largest union, supports Trump for re-election. The union is angry with de Blasio for stripping some of the police's resources

President Trump has fought against New York City Mayor Bill de Blasio after a weekend of violence in which at least 50 people were shot dead in various incidents across the city

President Trump has fought against New York City Mayor Bill de Blasio after a weekend of violence in which at least 50 people were shot dead in various incidents across the city

His comments come after the NYPD's largest union – the Sergeants Benevolent Association – took the unorthodox step of officially endorsing Trump because police are so frustrated with de Blasio's dealings with the city.

In June, he stripped $ 1 billion of the NYPD in response to Black Lives Matter protesters seeking to completely devalue the department.

Trump has vowed to revive the city if he wins the November elections, but he has yet to explain how. De Blasio will remain in power until November 2021. He cannot be re-elected.

On Monday morning, the President called Fox & Friends to discuss a number of issues, including New York City.

& # 39; The mayor has no answer. He doesn't know what he's doing, he's a fool.

“He's a socialist, communist, maybe he's a fool. He got rid of some of the most talented cops in the world, and that includes finding very bad things outside of New York.

“Some of these people are gone and that's not a good thing. No, that's an idiot. That's an idiot. & # 39; he said of de Blasio.

Crime has increased in the past few weeks, particularly the shootings. There were more than 60 shootings in New York last week, in which 76 people were injured.

Trump said Monday, “Look at the shootings. When I left New York four years ago it was New York, I could see the germs for it because he was a bad mayor, but New York was good.

& # 39; It was okay. It all happened recently. It all came together. All of this over a period of years when he was mayor, but about a year ago and then six months ago it's amazing what happened.

“When I left New York four years ago, we were doing great. I was fine. Everyone was fine. But now you could see that the seeds were being sewn.

"The seeds it happened, bad things happened, you could see it, the squeegies were starting to come out, tents were being built on the side wall."

The president then praised Rudy Giuliani as a "great mayor" who did "a great job".

“Rudy Giuliani did a great job, between windows, you know, fixing broken windows because he said it was a sign and it makes a lot of people not even understand that.

“It's very important psychologically, but Rudy, he was a great mayor and he stopped and looked. He stopped and looked. He took guns from bad people.

“Well, if you take a gun from a bad people, oh, you have, you know, they'll sue you.

& # 39; They are suing you. It's so crazy what they allowed, ”he snorted.

Trump added that most of the country was "strong" and "law abiding", but democratic cities like New York, Chicago and Portland were "run by fools."

Last week, New York found 13,000 vacant apartments, the highest number in 14 years.

Property prices are falling in NYC and San Francisco and properties are staying in the market longer due to the COVID-19 pandemic – as demand for rental properties in US cities falls nationally

Property prices have fallen in New York City and San Francisco, and properties have been in the market longer during the COVID-19 pandemic as demand for rental properties in U.S. cities has declined nationally.

Despite initial reports of city dwellers snapping up homes in the suburbs amid the pandemic, property prices in urban areas have actually kept pace with suburban areas across the country, according to a data analysis by Zillow.

The exception to this trend, however, can be seen in NYC and San Francisco – the two most expensive real estate markets in the country.

The analysis looked at whether the COVID-19 outbreak and the subsequent explosion of people working from home had sparked a boom in typically cheaper suburban areas.

The rate of new pending sales, which is a leading indicator of completed sales, was found to have increased in both urban and suburban areas since February.

Price cuts have moved steadily through the crisis, with price cuts slowing in most areas compared to February and somewhat more sharply in the suburbs

Price cuts have moved steadily through the crisis, with price cuts slowing in most areas compared to February and somewhat more sharply in the suburbs

San Francisco has seen an even greater flurry of new offerings. Homes for sale this month are up 97 percent year over year, according to the report

San Francisco has seen an even greater flurry of new offerings. Homes for sale this month are up 97 percent year over year, according to the report

States in the northeast have a new volume of pending urban zip code records that is picking up more slowly than the suburbs, the report shows. This is likely due to major declines in the total inventory. The northeast added much less urban inventory at the beginning of the pandemic, which later resulted in fewer possible sales

States in the northeast have a new volume of pending urban zip code records that is picking up more slowly than the suburbs, the report shows. This is likely due to major declines in the total inventory. The northeast added much less urban inventory at the beginning of the pandemic, which later resulted in fewer possible sales

Zillow economist Jeff Tucker said this trend shows that there is no widespread evidence that Americans are buying up property in the suburbs to flee cities.

The number of homes in the NYC market has increased, but buyer demand has not kept pace, according to StreetEasys July Market Report.

Properties for sale in the city's five boroughs rose 6.1 percent in early August year over year, and the number of rental properties across the city rose 63 percent.

According to the Zillow report, many sellers have accepted offers well below their asking price, and homes tend to be in the market longer than usual – almost twice as long as last year in Manhattan alone.

Meanwhile, San Francisco has seen an even bigger flurry of new offerings.

Real estate sales this month are up 97 percent year over year and list prices are down 4.9 percent, the Zillow report shows.

"When you step back and look at the bigger picture, it seems that those who write off urban real estate did so ahead of time," Tucker said.

& # 39; There is some localized evidence of a softer urban market, particularly in the highest priced markets, San Francisco and Manhattan, and a noticeable divergence in retail prices, but no evidence of widespread escape to suburban pastures.

"The main problem across much of the country is urban and suburban inventory drought, which is failing to meet surprisingly robust demand from buyers looking for record-low mortgage rates."

Suburban home listings on Zillow don't get any more attention than last year, according to the report.

Homes in the suburbs attract about three times as many views as urban homes, but that's no different from last year.

The total number of page views on Zillow in June increased by around 42 percent year over year, spread across markets in suburbs, cities and rural areas.

It shows that demand for housing is generally high, but not that buyers are flocking to homes in the suburbs in greater numbers than in previous years.

However, the rental market has suffered a blow at the national level, as rental rates in cities are slowing more than in suburbs compared to that time last year, according to the report.

While rental rates were stable earlier this year, rental demand has been hit by the surge in unemployment and the millions of young people who have moved in with parents or grandparents, the report said.

The typical urban zip code saw rental demand fall 2 percent from February through June, while the typical suburban zip code fell 1.4 percent over the same period.

Before the pandemic, demand rose, but both urban and suburban rents have fallen below their pre-crisis trends.

Of the 43 major metros analyzed by Zillow, 24 saw higher rental growth in suburban zip codes compared to urban zip codes.

Rental demand fell 3.8 percent in urban areas in New York and 1.3 percent in suburban areas.

In Dallas, rental demand fell 3.7 percent in urban areas, but only 0.5 percent in the suburbs.

Rental demand fell 3.9 percent in the urban areas of San Francisco, but only 1.3 percent in the suburbs.

In Phoenix, rental demand in urban areas fell 3.2 percent versus 2.8 percent in suburbs.

Urban areas in Pittsburgh saw a 3.8 percent decrease, but suburban areas only saw a 2.4 percent decrease

(tagsToTranslate) Dailymail (t) Nachrichten (t) New York (t) Donald Trump (t) Crime (t) Coronavirus