Renting in Manhattan v. Buying in the NY Suburbs
As per a recent article in the Real Deal: The Manhattan residential rental market saw rents increase across all apartment categories, the vacancy rate drop, and concessions recede in April, according to the monthly rental market report from Citi Habitats released today. “If we are able to get these rents and the demand is what it is it really does speak to the economy’s strength,” said Gary Malin, president of Citi Habitats. “In the end, if you want to be in Manhattan, sacrifice is par for the course.”
Manhattan apartments rented for an average of $3,429 during April, up from $3,418 in March, and $3,317 in April 2011 for a new record high, numbers from the brokerage show. For all types of apartments, average rents increased between 3 and 5 percent, the report says. The average monthly price of a Manhattan studio was $2,025, whereas the average for a one-bedroom was $2,785. The average two-bedroom in Gotham rented for $3891, and the average three-bedroom $5,186. Citi Habitats uses only its own recorded deals for their monthly market reports.
Despite the high rents and low vacancy rate across the board, Malin underscored that there are still opportunities in the rental market. “Where you are finding better values is on the Upper East Side and Upper West Side,” he said. “You have no-doorman no-elevator buildings [available].” And the average apartment in a walk-up building rented for $3,199 per month last month, 42 percent less than the average rent of $5,522 in a new construction doorman building, the report notes. Improving prices in outer boroughs are also sparking new development in previously underserved neighborhoods, according to Malin. “Red Hook had a moment there; Boerum Hill, Bed-Stuy and Bushwick are areas where you are just-removed from the hot area and they are close to transportation — those start to make sense.” You know what our comment is going to be... AND of course the good old suburbs is our thought. There is always that debate if and when you want to move out. At some point, the quality of life and the sacrifices we all need to make to stay in the city make the decision for us. The amount of space and the less intense life (although pick your suburbs correctly!) sometimes make the decision a no brainer! As we have brought up before, there are 2 types of NYC families-- those that will stay no matter what-- regardless of how high the rents are and what sacrifices they will make.....AND THEN there are our buyers, who LOVE NYC, can't get enough but know that in due time they will all be interviewing landscapers and picking out paint colors of their fabulous new play rooms! Regardless of whether a buyer is deciding to rent, or buy, the next move needs to be diligenced properly. Always look at your options and compare. Sometimes, but not always, the grass is literally greener!
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