How Much Does It Cost to Own a 2 Bedroom in NYC? (November 2022)
Welcome back to my series “How Much Does It Cost to Own”!
Each month, we’ll be looking at different sized apartments to get a sense of what the “median” apartment in either Manhattan or Brooklyn would cost. Over time, as we loop through each property type, we’ll start to be able to see if prices are trending upwards or downwards. But most importantly, this series should give you an idea of whether or not you’re in the “ballpark” for the kind of apartment you might want!
Keep in mind that these figures represent the median for all building types. So coops, condos, walkups, elevators, doorman and non-doorman, amenities, low amenities, new development – they’re all looped in together.
So let’s turn our attention this month to 2 bedrooms!
Two bedrooms are essentially the “bread and butter” of the sales market in NYC and are the most in demand properties. But they also have some of the widest variations in pricing due to differences in bathroom counts and square footage.
So for that reason, this edition has four rather than two infographics. But keep in mind that 2 bed/2 bath stats can be heavily skewed by luxury new developments. So don’t be too discouraged by the pricing for those! You can always contact me for more details on specific areas and property types.
What’s Behind the Numbers?
These numbers might seem a bit perplexing, especially in light of the numbers we saw three months ago. So let’s look under the hood to understand what’s going on.
In Manhattan, there’s definitely a wide spread between the cost of 2 bed/1 bath and 2 bed/2 bath apartments. But not quite for the reasons you may think.
At the time I was looking at the data, there were 1,156 2 bed/2 bath listings for sale in the borough. Of those, 156 were new development listings which had a median price of $2.45 million. But, 513 of the listings were co-op properties with a median listing price of $1.59 million. Big difference, right?
And keep in mind that this difference exists even before we dig deeper and compare based on neighborhoods and building amenities. The point being – there’s a LOT of variation out there. We’ll get to what that means in terms of how to use this info in just a bit.
Now, what about Brooklyn? Is it actually twice as expensive to buy a 2 bed/2 bath apartment compared to a 2 bed/1 bath? Nope.
So what’s going on here?
Similar to Manhattan, it’s all about the inventory composition. But not just what, but also where.
At the time I was reviewing the data, there was a lot of inventory for 2 bed/1 bath apartments in South Brooklyn in pre-war buildings, especially co-ops. And as we know, co-ops tend to go for a lower price per square foot versus condos and new development. By comparison, the 2 bed/2 bath segment had a lot of new development listings with higher carrying costs.
When you compare apartment sizes within neighborhoods, the differences between a 1 bathroom or 2 bathroom apartment are less stark. Let’s look at two areas to illustrate:
- 2 bed/1 bath median – $1.17 million
- 2 bed/2 bath median – $1.57 million
- 2 bed/1 bath median – $545,000
- 2 bed/2 bath median – $650,000
So, once again there’s lots of variability throughout the borough.
How Do I Use These Numbers?
You might be wondering – how on earth am I supposed to use the infographics you gave me? What use is this information?!
There’s a couple of takeaways that you can use from the numbers.
The first is from a high level. What you’re looking for isn’t necessarily specific numbers, but trends. For example, when you start to see that prices are trending downward, especially for various property types, that’s your signal that an opportunity is out there for broad negotiability.
Second – these high level numbers give you an idea of the kind of budget you might need to have the most options throughout the borough. But the variability should also underscore how important it is for you to understand the market in individual neighborhoods and property types.
Speaking of which…
If you want to see some specific listings in each area or get specific market stats, get in touch! You can contact me here.