The government also seems unfriendly towards innovation. Basically they're protecting old capital, which isn't surprising, that's the way it goes.

I'd be cautious buying into NY real estate. As far as rent goes if my job didn't cover the cost adequately I'd simply not live there. Buying something just because it's already pricey isn't generally a smart move, and pouring too much of your life and savings into a single market increases the risks.