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I'm curious though. Despite all the reports of hot apartment sales in Manhattan, City Habitats still has lots of apartment rentals at attractive prices with UES (80s - 90s) 3BRs listing at the low $3,000/month. Even lower for 2 BRs. Granted many of them are walk ups but you would have thought prices would be much higher. What's the reason for the difference between rentals and sales or is there a catch?
I'm curious though. Despite all the reports of hot apartment sales in Manhattan, City Habitats still has lots of apartment rentals at attractive prices with UES (80s - 90s) 3BRs listing at the low $3,000/month. Even lower for 2 BRs. Granted many of them are walk ups but you would have thought prices would be much higher. What's the reason for the difference between rentals and sales or is there a catch?
You can walk all over the UES and Yorkville and see "apartments for rent" signs outside all those large/tall rental buildings. People just don't want to rent even at "cheap" prices, and are looking to purchase. Landlords are trying to lure families to those units rather than see the usual but highly unstable roommate situation.
The persons who could benefit from living in those large apartments such as middle class Manhattan families won't get a foot past the door because they cannot pass the income requirements.
Renting is getting a bad name for many who can afford to purchase for several reasons. First they want to have control of future housing expenses. Yes, the rent may be "low" now, but who knows what the LL will want at renewal.
Next thanks to super low mortgage rates landlords of high end rentals and condo/co-ops are really all competing for the same group; persons with high credit scores, stable high paying employment and decent assets.
And really,
Can you imagine the discount that must be applied to a 5 story walkup. "Honey, I forgot my wallet, would you run up and get it for me." "You take the baby, I'll take the carriage and then come back down for the groceries."
Those "cheaper" apartments in the 80's and 90's are mostly between First and Second, some between Second and Third in OLD housing stock, mostly railroad apartments, and every walk to the subway is a long steep climb. Finding a 3 bedroom place among them is not common.
But in truth, they are the last good buys in Manhattan South of Harlem. And I think they will disappear with the opening of the Second Avenue Subway.
I'm curious though. Despite all the reports of hot apartment sales in Manhattan, City Habitats still has lots of apartment rentals at attractive prices with UES (80s - 90s) 3BRs listing at the low $3,000/month. Even lower for 2 BRs. Granted many of them are walk ups but you would have thought prices would be much higher. What's the reason for the difference between rentals and sales or is there a catch?
You sure? many have turned out to be fake, gone or lures when we have inquired about them.
Or a 3k apartment that was 500 sf. and chopped up into 2 BR or 3!!!!! Crazy.
And really,
Can you imagine the discount that must be applied to a 5 story walkup. "Honey, I forgot my wallet, would you run up and get it for me." "You take the baby, I'll take the carriage and then come back down for the groceries."
Those "cheaper" apartments in the 80's and 90's are mostly between First and Second, some between Second and Third in OLD housing stock, mostly railroad apartments, and every walk to the subway is a long steep climb. Finding a 3 bedroom place among them is not common.
But in truth, they are the last good buys in Manhattan South of Harlem. And I think they will disappear with the opening of the Second Avenue Subway.
Know at least two families living on the fourth floor of a five story walk-up tenement on East 80th just off third. They seem to manage pram, children and all.
From Lexington going east you can find signs outside almost every large rental building offering apartments for rent. Most of these modern buildings have "true" one, two and even three bedroom apartments. Problem is persons aren't willing to pay $3000 a month rent when for that kind of money they can own.
Will give you that many prefer new construction instead of the older former tenement buildings. Unless there was a major gut renovation even if your apartment is new the bones and the rest of the place often isn't. Just kind of breaks the spell, IMHO.
There was an article someplace a few months ago speaking of Manhattan real estate especially the rental market. Some are saying there is a natural ceiling for rents that once you get above it becomes harder to find tenants. Yes, there are those willing to pay >$10K per month in rent (a new condo building on East 81st that didn't sell is now renting units out at those prices), but there seems to be an organic change going on. That is more and more persons moving to NYC in particular Manhattan and parts of Brooklyn want to own rather than rent.
That is more and more persons moving to NYC in particular Manhattan and parts
of Brooklyn want to own rather than rent.
The operative word is WANT. I think it is a given that nearly everyone would rather own than rent but there is always that buy/lease decision that swings back and forth. For example, if 99% are looking to buy, the 1% will be offered breathtakingly low rents and swing the pendulum back.
Of the hundreds of new residential towers that have gone up in the last two decades a large majority of them were built as luxury rentals. I don't think that has changed a lot recently.
And realize the breathtaking cost of buying a 3 bedroom condominium in this City...few can afford them. So if you need 3 bedrooms, you either rent or pack up the moving van and head for the Lincoln Tunnel.
The operative word is WANT. I think it is a given that nearly everyone would rather own than rent but there is always that buy/lease decision that swings back and forth. For example, if 99% are looking to buy, the 1% will be offered breathtakingly low rents and swing the pendulum back.
Of the hundreds of new residential towers that have gone up in the last two decades a large majority of them were built as luxury rentals. I don't think that has changed a lot recently.
And realize the breathtaking cost of buying a 3 bedroom condominium in this City...few can afford them. So if you need 3 bedrooms, you either rent or pack up the moving van and head for the Lincoln Tunnel.
Yesterday there was a new HGTV edition of SELLING NEW YORK. (I know, I know, but still illustrative)
So there was an oriental woman and her never seen husband with 3 kids and 3 pit bulls who needed more space.
She wanted to buy the 3 bedroom apartment we are talking about, preferably on the East Side.
"How much do you want to pay" the realtor said:
She replied: "Four, four and a half."
The realtor sort of rolled her eyes, less than thrilled.
(Quick calculation for 20% down payment? $800,000 to $900,000 plus closing costs...CASH!)
And THAT is why there is market for 3 bedroom rentals.
RELATED is breaking ground for another 35 story luxury tower in my neighborhood...rental. Nearly every luxury high rise anywhere near me is rental. Perhaps it's because only a couple blocks away are the gazillion "ownership only" apartments of Park, Madison, and Fifth. Building more condos on Lex, Third, and Second might be like carrying coals to Newcastle.
Last edited by Kefir King; 01-08-2014 at 12:22 PM..
Nice to hear that Manhattan condos had a good year. Anyone have any information about how coops, condos and houses fared in the outer boroughs? The NYT never seems to understand that over 6 million New Yorkers do not live in Manhattan!
Well, you can't have it both ways. People simultaneously complain about how hard it is for the middle class to live in NYC, when it's really only hard for the middle class to live in Manhattan (and a relatively small portion of Brooklyn), and then complain about how reports focus only on Manhattan real estate prices.
It is amazing that so many people will spend so much money to live in such a small place.
People buy into hype and eventually realized more than ever the city is being transformed to the town which they came from.
Back then you couldn't buy horrible Pizza in brooklyn, now there are plenty. The transplants only eat Dominos and Papa Johns.
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