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flapjack212 t1_jbp3cy3 wrote

Reply to comment by pixel_of_moral_decay in Newport Rental Crazy Price Increase 20-25%+ by recklessmax80

yeah OP's math is definitely off. by my guess the tax increase could justify anywhere between 10-15% increase in rent.

the next biggest component is probably the increase interest rates, as commercial loans are often variable rate. interest rates have doubled

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pixel_of_moral_decay t1_jbpd4y0 wrote

Next is by far labor.

Look at condo budgets and you’d see it’s always about 50% labor directly (doorman, porter) and indirectly (plumbers, hvac, carpet cleaners etc). That’s outpaced inflation by quite a bit due to minimum wage increases, unionization in NY for doormen and a shortage of tradespeople.

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