Dmitry Karabutov Explains the Real Story Behind NYC Housing

Understanding New York Real Estate Through the Eyes of a Broker

Real estate headlines often focus on politics, regulations, and rising rents.

But what do those changes actually look like on the ground?

In this episode of Real Deal Podcast, Leo Jacobs sits down with Dmitry Karabutov, residential broker at Charney Companies, to discuss New York City's housing market, the FAIR Act, inventory shortages, content creation, and the realities facing both tenants and property owners.

More Than Just Another Real Estate Broker

Dmitry has built a following by doing something different.

Instead of posting the typical luxury apartment tours and skyline views, he focuses on the stories behind New York's buildings.

His content explores:

• The history of properties
• The people who built them
• Development stories
• The economics behind real estate

For Dmitry, real estate is more than square footage. It's about understanding how cities evolve and why buildings matter.

The FAIR Act and Rising Rents

One of the most important topics in the conversation is the impact of New York's FAIR Act.

According to Dmitry, many industry professionals predicted that the legislation would reduce inventory and increase rents.

In his experience, that's exactly what has happened.

He points to examples where apartments that rented for approximately $5,500 a year ago are now renting closer to $7,000, despite little change in the actual product. The key driver, he argues, is reduced supply.

Why Inventory Matters

Housing markets follow a basic principle:

When supply decreases and demand remains strong, prices rise.

Dmitry explains that many owners now face additional costs and restrictions that make certain apartments financially difficult to bring back to market.

As a result:

• Fewer apartments become available
• Competition increases
• Rent prices rise

The challenge, according to Dmitry, is that policies intended to help renters can sometimes create unintended consequences.

Seeing Real Estate from the Ownership Side

A major turning point in Dmitry's career came when he joined Charney Companies.

As part of a vertically integrated firm, he gained exposure to:

• Acquisition
• Development
• Construction
• Property management
• Leasing
• Asset disposition

This broader perspective helped him understand real estate not just as a broker, but as an owner and operator.

That experience allows him to better advise clients and understand the challenges facing housing providers.

Why Owners Sometimes Leave Units Vacant

One of the more controversial topics discussed is vacant apartments.

Dmitry explains that in some situations, owners may need to invest significant capital into an apartment before legally renting it again.

When regulations limit future rental income, some owners determine that the required investment simply doesn't make financial sense.

The result is a paradox:

Apartments exist, but they remain off the market.

This creates even more pressure on housing supply.

The Importance of Understanding Both Sides

Throughout the conversation, Dmitry emphasizes that most people only see housing issues from one perspective.

Tenants see rising rents.

Owners see rising expenses.

Policymakers see affordability challenges.

Understanding all sides of the equation is critical to creating effective housing solutions.

Looking Ahead

As New York continues to navigate policy changes, affordability concerns, and shifting market conditions, the long-term impact remains uncertain.

What is clear is that housing markets are complex, and simple solutions rarely produce simple outcomes.

For professionals working in real estate, understanding both economics and human behavior remains essential.

🎧 Watch Real Deal Podcast 3

🎧 Watch the full episode to hear Dmitry Karabutov discuss New York housing policy, brokerage, inventory shortages, and the realities shaping today's residential market.

PODCAST - Confronting the Impossible with Leo Jacobs.

Leo Jacobs, Founder and CEO of Jacobs PC

Known for finding creative, expedient solutions to complex and high-profile cases, Leo excels in matters including distressed investment and asset management, real estate law, corporate law, dispute resolution, business divorces, negotiation, and more. Leo’s extensive expertise in debt and equity structures enables him to employ a full spectrum of legal tools to achieve swift, optimal results for clients. His practice, Jacobs P.C., bridges commercial litigation, corporate transactions, and financial rehabilitation, handling cases across federal, state, and bankruptcy courts, as well as administrative tribunals.

If you would like to join the podcast email requests to pr@jacobspc.com