Welcome back to “How Much Does It Cost to Own”!
Each month, we’ll be looking at different apartment sizes 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 studios!
Now let’s get a visual on how median price and total monthly costs have shifted over time.
In Manhattan, the cost of owning has gone down just a bit compared to the previous quarter. This was thanks to lower median prices. Meanwhile in Brooklyn, it remains pretty much unchanged. In general, the cost of owning a studio has crept up very slowly in Brooklyn, despite higher interest rates. But prices saw a big jump in Manhattan between the first and the second quarter of 2023. This may have been caused by more luxury studio listings, as opposed to higher absolute asking prices.
High rent combined with the relative affordability of pricing compared to larger apartments makes studio ownership still appealing. This is clearly the case in Brooklyn, where the median rent for a studio is $3,288 compared to all in ownership costs of $2,581.
The equation is a little bit less clear in Manhattan, where the median monthly rent is $3,568 compared to $4,245 to own. However, what’s keeping that ownership number high are the monthly carrying costs. So if you can find a building with lower carrying costs (such as a walk-up or small elevator building), then owning may make more sense.
Thinking about seeing what’s out there for sale? 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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