Least profitable county for rentals? New York, data shows

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

TRD New York /
Apr.April 01, 2014 03:10 PM

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

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