The Real Deal New York

Least profitable county for rentals? New York, data shows

Jurisdiction has lowest gross yield in the country; other area counties made the list, too

April 01, 2014 03:10PM

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A rental heat map showing clusters of cities with varying return rates.

Rental heat map showing rental return rates

Landlords may not get much sympathy from New York City tenants as rental rates continue their rapid ascent, but they might snag a sympathetic ear from landlords in other U.S. cities.

Manhattan’s New York County is the least profitable market for landlords of all U.S. counties, according to new data from RealtyTrac. Calculations based on the fair-market rent for a three-bedroom home–$1,852 a month–show that building owners on the island get only 3 percent in annual gross yield.

Kings and Queens counties don’t fare much better, with Brooklyn rents yielding the fourth lowest returns in the country, on par with similarly pricey San Francisco at 4 percent. Queens landlords, meanwhile, generate a 5 percent gross yield on their properties on average, placing the county among the those with the nation’s lowest yields, the report showed.

In comparison, landlords in counties that include Detroit, Michigan and Atlanta, Georgia rake in 30 percent and 28 percent yields, respectively. The blog attributed the low yields to skyrocketing property prices[Curbed]Angela Hunt

  • WannaBeLandlord

    Probably explains why Blackrock bought several hundred thousand SFR rentals is very boring locations far from hipsters, bankers, and developers.

  • disqus_biixlyodTL

    1,000,000 rent stabilized apartments.

    • disqus_biixlyodTL

      totally unrelated.

  • TheWhateverMan

    Have you seen Detroit lately?

  • anon

    But it is that rent stabilization that has allowed NY to bounce back from the real estate mess, because they retain value. The equity in the buildings are doing a lot better than the country though.

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