Maintenance fees in Manhattan have risen 30 percent since 2008, despite a sharp drop in home prices following the housing bust, CNBC reported. Monthly costs now come in at an average of $1.70 per square foot, and have risen at twice the rate of inflation, according to appraisal expert Jonathan Miller of Miller Samuel.
The increase is the result of higher building insurance, fuel and staffing costs, as well as underlying mortgages.
Maintenance costs can be a dealbreaker for househunters and can even drive wealthy owners to sell. The 18th floor of the Sherry Netherland, as an example of high maintenance fees, is on the market for $95 million; its monthly maintenance adds up to $60,000.
“There was an assumption during the boom that the wealthy didn’t care about maintenance and you could saddle an apartment with high fees and not have an impact,” Miller told CNBC. “That turned out not to be true. There is an inverse relationship between carrying costs and market value.” [CNBC via Yahoo] –Zachary Kussin