NYC Apartment Rents Need to Drop as Much as 15%, LeFrak Says
- Oversupply at high end needs to be absorbed, LeFrak says on TV
- ‘There’s a huge demand’ for more-affordable apartments
Apartment rents in cities such as New York and San Francisco will need to fall as much as 15 percent for a glut of high-end developments to be absorbed, according to billionaire real estate investor Richard LeFrak.
“We built a lot of new product at the high end, anticipating incomes that don’t exist in the market now,” LeFrak, chairman and chief executive officer of the LeFrak Organization, said Wednesday in a Bloomberg Television interview. “We need more affordable product in the market. There’s a huge demand at that price point.”