In the last six weeks we've been through a lot, and while I'll leave most of my commentary for Instagram, it does feel like we've taken a massive step forward.

Now that the many National elections and transitions are over, we can focus on the upcoming 2021 NYC City Council and Mayoral races, where housing and real estate are key topics. I am a firm believer that our government should include people from all over the political spectrum -- provided they actually want to govern and not just personally benefit -- and am excited to hear what the many candidates have to say.

We'll see how everything shakes out, and I'll be upping my weekly Monday email game (to subscribe, just reply to this email), alternating my usual Misinformation Mondays, where I correct a misconception or dig into a news story about everything from rent relief to new development, with Market Mondays, where I'll use data to explain what's happening . For those of you who only want to hear from me once a month, that's great, too.

Already the NY State Democratic super-majority is making waves re-introducing the pied-a-terre tax (which I will write about in detail on Monday). Cuomo has obviously listened to my advice and now also supports converting some Midtown office space to residential. Biden is eyeing closing the 1031 exchange loophole (which I wrote about last year). Cuomo and Schumer, amongst others, are pushing for revisions to the 2017 tax changes to remove the $10,000 SALT deduction cap that penalizes high-tax states and hurts high-end real estate. Eviction bans are coming from both the state and federal level, and hopefully expanded rent/foreclosure relief will pass as well, since we need an actual solution, not just more kicking the can.

So there's a lot to talk about! But for now, here's your first market update of the new year:

NYC is, slightly, a buyers' market but for how much longer is unknown. The more certainty and stability we have, the more control over the virus, and the more money we see flowing into states and cities, the more sales will increase. I expect 2021 to be a huge year, with buyer leverage depending on the amount of new product hitting the market and the number of active purchasers. As always, I urge you not to "time" the market. Both the rental and sales markets have already passed their lowest points and are rebounding, as the city goes from the epicenter of the virus to one of few places keeping the spread at least somewhat contained.

Stay safe and informed, and be kind. TGIF.

Anna

What I Read

Cuomo called for major infrastructure upgrades. What does that mean for NYC real estate?

The new Penn Station expansion, Moynihan Train Hall, which just opened inside the old James A. Farley Building, was just step one. Now there are proposals for everything from an expansion of Union Square Park to the redevelopment of Pier 76 to bringing the Q line up to East Harlem. As the smartest agent at Compass (not me) once said, to bring our city and country to a new level "we need to build." I'm hopeful that we are at the start of a huge infrastructure push that we desperately need.

What Else

Real Estate Brokerage Compass Taps Banks for IPO

The strongest IPO "class" in recent memory, including Lemonade and AirBnb, 2020 offered a unique opportunity to many tech companies to trim the fat, increase profits, and take advantage of all the investment capital from the "rich getting richer" aspect of our K-shaped recovery. Compass, in which I have the most minimal of equity, has announced it has taken the first steps in this process. Look out for way more Compass in the news, and ignore anything sensationalist or gossipy.