Welcome back to my series “How Much Does It Cost to Own”!
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, no amenities, new development – they’re all looped in together.
So let’s turn our attention this month to 3 bedrooms!
Next to 2 bedrooms, 3 bedroom properties are some of the most in demand properties in the city (and sometimes even in more demand, depending on the area). But they also have wide variations in pricing due to differences in square footage and bathroom counts.
So for that reason, this edition has four rather than two infographics. But keep in mind that 3 bed/2 bath stats are being heavily skewed by luxury new developments. So don’t be too discouraged by the pricing for those!
Now let’s get a visual on how median price and total monthly costs have shifted over time.
Shocked by those low numbers for Manhattan 3 bedroom/1 bathroom apartments? There’s a good explanation for them. Similar to the previous period, inventory is low and most of it is uptown where the price per square foot is a lot lower compared to the rest of the borough. So don’t go looking around Chelsea or the West Village thinking you’re going to have an easy time finding a 3 bedroom for under $700,000!
Pricing for 3 bedroom/2 bathroom apartments reflects the borough a bit more accurately. There’s a wider range of inventory across many neighborhoods. So if this is the property segment you’re considering, then this median price is a good budget to have.
But let’s look at that overall monthly cost – it’s finally down compared to August 2023. And that’s thanks to lower interest rates and a lower overall median price.
In Brooklyn, you can really see the power of lower interest rates. For both types of 3 bedrooms, the overall median price was higher than it was back in August 2023. And average monthlies stayed about the same. But the total overall cost of ownership is down for both 1 bathroom and 2 bathroom properties, thanks to those lower rates. However, 3 bed/2 bathroom prices are being skewed lower, due to higher inventory in South Brooklyn.
Thanks to this (welcome) shift in rates, the rent versus buy comparison changes a bit. In Manhattan, the average 3 bedroom was $11,078 in the month of November 2023. So clearly owning beats out renting for a 3 bed/1 bath. But as stated earlier, most of your options will be uptown.
Renting still beats out owning for 3 bed/2 bathroom apartments but the gap has narrowed considerably due to the falling interest rates. So rather than looking at a $4K+ gap, you’re looking at a $2K+ per month gap. Not insignificant by any means. But if you’re hoping to put down roots in a larger apartment, buying may be looking more appealing.
In Brooklyn, the decision is much more straightforward. For both 3 bed/1 bathroom and 3 bed/2 bathroom apartments, owning beats out renting. The average 3 bedroom rent in Brooklyn for November 2023 was $6,653, which is well above the median ownership cost for both property types. However, it’s important to remember that prices are being pulled downward due to the amount of inventory present in South Brooklyn. The picture will look different based on the neighborhood and demand within that neighborhood.
Want to see some specific listings in each area? Get in touch and I’ll send you a round up!
Get my NYC First Time Home Buyer Guide FREE when you sign up for my monthly newsletter
By clicking Sign Up you're confirming that you agree with our Terms and Conditions.