Welcome back to “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 currently costs. 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 – they’re all looped in together.
So let’s loop back 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.
Despite rising interest rates, the median asking price for 1 bedrooms in Manhattan increased. Does that indicate that prices are on the upswing for this segment of the market? Not necessarily.
When we dive deeper into the numbers, we see that there’s a number of ultra luxury 1 bedroom apartments which are pulling this number higher than it would be otherwise. Out of 1600+ active listings, 700+ were actually priced at or under $800,000. And looking further, 353 listings were at or under $600,000.
The picture is more favorable for buyers in Brooklyn, where prices actually declined. This is a bit more in line with what we’d expect with higher interest rates.
And when we look at the rent versus buy signals, they continue to be stronger for buyers in Brooklyn compared to Manhattan. The average rent for a 1 bedroom in Brooklyn during the month of May 2023 was $3,580 – $200 more than the total monthly cost to own a place. In fact, the total monthly cost of ownership is actually lower now than it was back in June 2022. So if you’ve got the liquidity and plan to stay in place for a bit, you need to seriously think about buying!
Manhattan isn’t a lost cause, however. Average rents for 1 bedrooms in the borough stood at $4,605 during the month of May 2023. And as noted above, there’s quite a few places available for at or under $600,000. So something in that price range combined with low monthly carrying costs definitely make owning the more attractive option.
Speaking of which…
If you want to see some specific listings in an area or talk about your possible home search, get in touch! You can contact me here!
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