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

Rising interest rates are causing the cost of ownership to be up across the board for both 1 and 2 bathroom apartments in both boroughs. 

The most pronounced increase can be seen for 3 bed/2 bathroom apartments in Manhattan. They jumped almost $1800 per month compared to the prior period. Meanwhile, 3 bed/1 bathroom apartments in Manhattan saw the smallest increase. The cost of ownership is up by just $79 thanks to a $27,000 decline in the median asking price. 

Brooklyn three bedrooms are up by modest but meaningful amounts – $134 per month for apartments with 1 bathroom; and $287 per month for apartments with 2 bathrooms. 

Should You Rent or Buy? 

Despite the increases in price, buying actually wins out over renting when it comes to 3 bedroom/1 bathroom apartments in Manhattan. That’s thanks to the continued rise in rents, with the median asking rent in the borough for 3 bed/1 bath apartments at $6,417; $1,740 more than owning. 

But don’t get too excited about this news. In order to take advantage of this kind of savings, you’ll probably have to move from a more expensive neighborhood to a less expensive one. So don’t start thinking it’s cheaper for you to own an apartment in Chelsea than it is for you to rent one. Get market specific intel to help you make your decision (more on that at the end of this post). 

By comparison, renting easily beats out owning in Manhattan. The median price for 3 bed/2 bathroom rentals is $8,650. That’s a pretty penny, but it’s still far cheaper than the extra $5,000+ per month you’d spend to own. 

But again – it all depends on where you’re looking. Remember this is a borough wide figure and prices are being skewed by luxury apartments in this property segment. If you’re open to moving to a new, lower priced neighborhood, that gap could close substantially. And the equation might even flip in favor of owning for you compared to what you’re currently paying in rent. 

In Brooklyn, renting wins out in both scenarios. It’s cheaper to rent than it is to own the median priced 3 bed/1 bathroom apartment, with median rents at $3,997, a little more than $1000 less than owning. And renting also wins out for 3 bed/2 bathroom apartments, with median rents at $5,700 compared to $6,273 for owning. But with a gap of less than $600, renters might still want to consider the ownership option. If you can find an apartment with lower carrying costs in a lower priced area, then the equation could easily tip in favor of buying. 

Want to look into personalized market specific intel now? Get a free custom report below!