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” priced 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 1 bedrooms!
Now that we have three quarters’ worth of data under our belt, let’s get a visual on how median price and total monthly costs have shifted over time.
There’s definitely some encouraging trends happening for 1 bedroom buyers in both Manhattan and Brooklyn (more so in the latter).
The median price ticked up slightly in Manhattan, but prices have otherwise stayed pretty much the same for the last 6 to 7 months. This indicates some degree of stability within this market segment.
With prices being steady, interest rates and monthly charges make the biggest impact on overall monthly costs right now. We’re seeing a trend downward in price due to interest rates having come off some of the recent highs. But it’s unclear how long (or if) that will last.
Brooklyn, by comparison, is seeing a similar pattern as Manhattan. But the decline in median price is a bit more substantial – to the tune of $10,000 to be precise. And that, combined with somewhat lower interest rates and more listings with lower monthly charges makes a big difference. In fact, the total monthly outlay based on these numbers is actually now lower than it was back when rates were around 4.625%.
And how do total monthly costs compare to rents for 1 bedroom apartments? The median price for 1 bedroom rentals in January was $4,312 in Manhattan, so you’d need to find something below the median price and with low monthlies for owning to beat out renting. At least in the short term.
But for Brooklyn, it’s another story. The median price for 1 bedroom rentals in January was $3,474 and that’s right at the same amount for owning. So if you think you’re going to be staying put for several years, now is absolutely a good time to consider buying a 1 bedroom!
Want to see some specific listings in each area? Get in touch and I’ll send you a round up!
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