*Looking for the most recent stats on how much it costs to own a 1 bedroom in NYC? Click here for updated numbers!*

Welcome back to “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 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 1 bedrooms! 

Now let’s get a visual on how median price and total monthly costs have shifted over time. 

What’s Behind the Numbers

Despite rising interest rates and prices, the overall cost of ownership for a 1 bedroom apartment in Manhattan is actually down compared to the prior period. The reason? Lower monthly carrying costs. They’re down by $350, which is enough to offset the higher interest rate of 6.7% versus 6.5%. This isn’t necessarily a sign of something happening with carrying costs. Instead, it’s just an indication that there’s more listings available in lower cost buildings compared to the last time we did our comparison. 

The cost of ownership is also down in Brooklyn. But in this case the reason is primarily due to a much lower median asking price. Monthly charges were also down, but only slightly. So this likewise has offset the higher interest rates. 

Renting vs Owning – Which Wins Out? 

In Manhattan, renting still beats out owning since the median asking rent in the borough for a 1 bedroom currently sits at $4,905. However, if you can find a building with monthly carrying costs below $800 per month, then the balance tips in favor of owning. At the time of this post, there were more than 40 listings at or below the median asking price which met this threshold. The majority of these listings were in northern Manhattan. 

In Brooklyn, by contrast, owning beats out renting to the tune of more than $600 per month with the median asking rent for a 1 bedroom sitting at $3,895. However, as is often the case, inventory is not at all evenly distributed throughout the borough. The vast majority of at or below median priced listings are in southern and eastern Brooklyn. 

In general, for those hoping to make the switch from renting to owning, you’ll likely have to consider moving to a lower cost neighborhood than the one in which you’re renting. But this varies on a neighborhood by neighborhood basis. Which is why it’s important to make sure you get accurate data for your specific areas of interest before making a decision. 

Speaking of which…