The cheapest of the cheap in NYC homes

August 19, 2010 09:00AM

123-127 Merrick Boulevard in St. Albans, Queens, where a one-bedroom co-op costs $59,000 (source: PropertyShark)

Like most of New York City’s housing stock, starter homes have gotten cheaper since the housing bust, but in many cases, the discounts aren’t as severe as they could have been at the low-end of the market if not for the first-time homebuyer tax credit, according to the Wall Street Journal. Still, when the paper rounded up the cheapest of the cheap New York City homes currently on the market using data from PropertyShark.com, the rock-bottom prices revealed were far lower than they were in 2008, and for many families, could turn out to be more economical than renting. The cheapest option for homeownership in the city is currently a 300-square-foot studio co-op in the Bronx’s Fordham Manor that is asking $45,000. Meanwhile, in St. Albans, Queens, a one-bedroom co-op at 123-127 Merrick Boulevard is asking $59,000, which, with a 30-year mortgage and a 4.5 percent interest rate, works out to roughly $300 per month. In the Bronx, Queens and Staten Island, the low-end of the housing market currently commands an average sales price of around $250,000, according to appraisal firm Miller Samuel. In Brooklyn, that figure is roughly $400,000, while in Manhattan, it is $600,000. Most of these homes go to first-time homebuyers, said founder and CEO Jonathan Miller. [WSJ]