Manhattan apartments tip furthest in favor of buyers in last six years

New York /
Jun.June 11, 2012 09:30 AM

Amid rising rents, buying a Manhattan apartment hasn’t looked this sensible since 2006. Citing data from appraisal firm Miller Samuel, Bloomberg News reported that in the first quarter the average cost of buying was 20.8 times more expensive than the annual cost of renting, the smallest spread since the end of 2006, when buying was 20.4 times the cost of renting. In the second quarter of 2008, the multiple was 26.7.

Miller Samuel said the median price of buying a Manhattan condo or co-op in the first quarter fell 0.9 percent year-over-year to $775,000, whereas the median monthly rent jumped 7.1 percent to $3,100. The analysis factors in real estate taxes and maintenance charges, but doesn’t account for mortgage interest tax deductions that would reduce the burden.

But thanks to a tight lending climate, the news is meaningless for many interested buyers, Bloomberg News noted. Further, although it’s a relatively good time to buy in Manhattan, the math does not make a purchase on the island “a good deal” compared to other metropolitan areas, according to Jed Kolko, chief economist of Trulia.

In its May issue, The Real Deal broke down the costs of owning versus renting in Manhattan, and found that most neighborhoods were more affordable for renters. [Bloomberg]


Related Articles

arrow_forward_ios
From left: Don Mullen, chief executive officer, Pretium Partners; Kelli Lawrence, chief executive officer, Onyx+East (Pretium Partners, Onyx+East, iStock)
Pretium to launch $600M JV for build-to-rent development
Pretium to launch $600M JV for build-to-rent development
Tax assessments rise 9%, signaling higher bills for landlords
Tax assessments rise 9%, signaling higher bills for landlords
Tax assessments rise 9%, signaling higher bills for landlords
$1B in Rent Reduction Available to Select Blackstone Tenants (Blackstone)
Blackstone to spend $1B in affordable single-family rental expansion
Blackstone to spend $1B in affordable single-family rental expansion
(iStock/Illustration by Kevin Rebong for The Real Deal)
Owning is more affordable than renting, even amid rising home prices
Owning is more affordable than renting, even amid rising home prices
From left: Eric Adams, mayor of New York City; Rich Buery, chief executive officer, Robin Hood; Scott Short, chief executive officer, RiseBoro (Getty Images, Twitter/LISC NYC, iStock/Illustration by Steven Dilakian for The Real Deal)
Nonprofits call for greater access to city vouchers as evictions loom
Nonprofits call for greater access to city vouchers as evictions loom
Gov. Kathy Hochul, RSA President Joseph Strasburg, The Fortune Society's Andre Ward (Getty, Fortune Society/Illustration by Kevin Rebong for The Real Deal)
Hochul aims to stop landlords’ knee-jerk rejections of ex-cons
Hochul aims to stop landlords’ knee-jerk rejections of ex-cons
Onyx Equities to roll out 2 Ridgewood rental projects
Onyx Equities to roll out 2 Ridgewood rental projects
Onyx Equities to roll out 2 Ridgewood rental projects
RET Ventures' Chris Yip and The Real Deal's Hiten Samtani
Inside the rental tech ecosystem, with RET Ventures’ Chris Yip
Inside the rental tech ecosystem, with RET Ventures’ Chris Yip
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...