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. 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.

What’s Behind the Numbers

For the first time in a while, the cost of ownership is down across the board in both Manhattan and Brooklyn. Manhattan is seeing the steepest declines. Lower asking prices along with lower interest rates combined to decrease the cost of owning by more than $800 for 3 bed/1 bath apartments compared to the prior period of analysis. And the cost of owning is down by more than $1000 for 3 bed/2 bath apartments for the time period. 

Brooklyn is seeing more modest declines. Interest rates are helping to decrease costs overall. However, asking prices are down only slightly for 3 bed/2 bath apartments. And they’re actually up for 3 bed/1 bath apartments compared to the prior period. As a result, the cost of ownership is down by just $73 for 3 bed/1 bath apartments. And it’s down just $286 for 3 bed/2 bath apartments. The latter isn’t an insignificant amount. But it’s just much smaller compared to what we’re seeing in Manhattan. 

Should You Rent or Buy? 

The rent versus buy equation is a bit of a surprise this go round. In Manhattan, it actually makes more sense to own either a 3 bed/1 bath apartment or a 3 bed/2 bath apartment. The median rent for a 3 bed/1 bath is currently $5,450 which is $852 more than owning. And the median rent for 3 bed/2 bath apartments is currently $14,262 which is $2,032 more than owning. This often is not the case when it comes to the rent versus buy equation in Manhattan. But this underscores how rapidly and aggressively rents are rising for larger apartments in the borough due to incessantly tight inventory. 

Brooklyn is surprisingly the opposite. It actually makes more sense to rent than own in the borough for either a 3 bed/1 bath or a 3 bed/2 bath. The median rent for a 3 bed/1 bath is currently $3,500 which is $1,370 more than owning. And the median rent for 3 bed/2 bath apartments is currently $5,500 which is $769 more than owning. Why the disparity between the boroughs? The answer is inventory. While the rental market remains competitive, more new development listings have came online last year with more in the pipeline for this year. And so this has been giving renters options and moderating rents.