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, 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.
Now that we have a year’s worth of data under our belt, let’s get a visual on how median price and total monthly costs have shifted over time.
The cost of ownership increased across all categories over the last 3 months. This was largely driven by the increase in interest rates. But there may have also been some true price gains as well, since each category saw its median asking price go up as well. Q2 2023 was a stronger sales market compared to Q1 2023, so that’s not too surprising. Additionally, a higher number of luxury listings on the market probably contributed to this increase as well.
Despite these increases, buying a place may be a better proposition than renting if you’re looking to purchase a 2 bed/1 bath apartment in either borough. The average rent for a 2 bedroom in Manhattan was a whopping $6,561 in the month of June – more than $200 higher than owning. And in Brooklyn, the average asking rent was for a 2 bedroom was $4,682, a full $1000 lower than the monthly cost of owning a 2 bed/1 bath in the borough.
However, for those looking for a 2 bed/2 bathroom, it’s a trickier prospect since the costs per month are much higher than renting. If you can find a property below the median price with low monthly charges and you plan on staying for at least 5 years, then buying might be the better choice.
Remember that when it comes to these numbers, we’re looking for trends. 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.
And also remember that these numbers aren’t the “end all, be all” for how much any apartment would cost. They’re just intended to give you a ballpark idea of the kind of budget you might need to have the most options throughout a borough. It’s always key to understand that there are wide variations between neighborhoods and property types.
Speaking of looking for a place to buy instead of rent…
If you want to see some specific listings in each area or get specific market stats, get in touch! You can contact me here.
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