Wall Street's Wealthy Can't Nab Apartments

With 7-figure bonuses in jeopardy, the rich lack buying power
By Kevin Spak,  Newser Staff
Posted Jul 12, 2008 1:50 PM CDT
New York's financial community just can't buy the high-rise luxury pads they used to.   (AP Photo)
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(Newser) – Manhattan’s most rabid real estate buyers are finding that a million-dollar bonus doesn't cut it anymore, the New York Times reports. With markets in turmoil, Wall Street bankers' staggering bonuses are in jeopardy, and apartment sellers are taking note. “They’re looking for people who have stable incomes that are not so market dependent,” one mortgage company president said.

Many co-ops are refusing to count bankers' seven-figure bonuses as part of their salaries, leaving them with far less buying power. Tightening mortgage standards have made condo sales tougher, too. All of which has taken a bite out of the Big Apple market: “This downturn is more profound,” said one real estate broker. “It has hit the largest customer base we’ve had.”