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

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
U.S. District Court Judge Dabney Friedrich (Senate/Chris Coons, iStock)
Judge strikes down federal eviction ban
Judge strikes down federal eviction ban
(Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
Renters prepare for eviction crisis as aid is held up
Renters prepare for eviction crisis as aid is held up
A rendering of One Boerum Place with Avery Hall Investments' Avi Fisher (top) and Brian Ezra (SLCE Architects, Avery Hall Investments)
Shifting gears: Brooklyn condo tower to debut as rental
Shifting gears: Brooklyn condo tower to debut as rental
Mayor Bill de Blasio (Getty)
City rent board missing landlord rep ahead of preliminary vote
City rent board missing landlord rep ahead of preliminary vote
Stimulus payments, the vaccine rollout, low inventory of homes for sale and the recovering economy likely contributed to landlords accelerating the pace of rent increases last month. (iStock)
Rent hikes are back
Rent hikes are back
(iStock)
NYC rents hit record lows at the start of 2021
NYC rents hit record lows at the start of 2021
The change was driven by record rent drops and an increase in available apartments. (iStock)
Falling rents double city’s supply of voucher-accessible apartments
Falling rents double city’s supply of voucher-accessible apartments
The report of the death of cities was an exaggeration, an analysis of 30 million change-of-address forms shows. (iStock)
Exaggerated exodus: Covid didn’t scramble people’s migration patterns
Exaggerated exodus: Covid didn’t scramble people’s migration patterns
arrow_forward_ios

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

Loading...