As Manhattan rents soar, parents become landlords

Median rental price for a studio hit almost $2,600 a month while a one-bedroom is $3,375

TRD New York /
Feb.February 22, 2016 12:01 PM

Forget instant ramen and multiple roommates in far-flung parts of the city, a few lucky Millennials have the ultimate New York City gift — a pad bought by mommy and daddy. As rents in Manhattan skyrocket, some parents are buying apartments and then “renting” them to their very deserving children.

The median rental price for a studio in Manhattan is almost $2,600 a month and a one-bedroom $3,375, according to appraisal firm Miller Samuel.

Julie Newdow, a broker at Corcoran Group Real Estate, told the New York Times that while it’s always been tough for recent college grads with entry-level jobs in the city, it’s even more so now.

Newdow, and her husband, Mark Landisman, also a broker at Corcoran, purchased a one-bedroom With A Terrace in a postwar co-op in Kips Bay last year. Landisman’s son Brian Landisman, 28, a graduate student at Pratt, pays the maintenance fee of $1,021 a month for the apartment.

He was paying $2,150 a month for a one-bedroom rental in an Upper East Side walk-up, which Newdow called “crummy.”

“We could be getting double or triple what our son is paying,” Newdow said. “But we’re not out of pocket.”

Manhattan’s median rental prices have been steadily rising for the past two years, and jumped another 4.5 percent last October to $3,391.

Jonathan Miller, president of Miller Samuel, told the Times, that “over the last three or four years, we’ve been seeing more pied-à-terre purchases that involve parents buying a small unit as a home for a child with a first job in the city, and also as an investment.” [NYT]Dusica Sue Malesevic


Related Articles

arrow_forward_ios
The massive meeting held in a suburban casino outside of Utica came at a time when the real estate industry is asking itself some tough questions. (Credit: iStock)

Meet the 400 landlords that are taking rent laws into their own hands

Olivia Gamber, the farmer-in-residence at Staten Island Urby’s Rabbit Garden

The Staten Island rental that’s luring in renters with tomatoes and hot peppers

The states with the biggest share of vacation rentals aren’t where you’d think

How NYC landlords are trying to get around the new rent law

(Credit: iStock)

Manhattan homebuyers continue “camping out” in the rental market: Elliman

441 Ocean Avenue and 1745 Caton Avenue in Brooklyn (Credit: Google Maps)

Meridian Properties buys pair of
rent-stabilized buildings for $35M

(Chart by Miller Samuel)

Cautious buyers are pushing up Manhattan rent prices

NJ rents are below the national average

arrow_forward_ios