Home Buying in New York>Question Details

Joe, Home Buyer in New York, NY

what is the status of manhattan 1 bedroom apartment values; are they going down, stable, or rising. i am considering purchasing one to use as a rental

Asked by Joe, New York, NY Tue Oct 4, 2011

i am interested in buying a studio or one bedroom apartment to rent for an investment and am curious what the current status of the market is.

Help the community by answering this question:


Hi Joe,

The major brokers all released market data this week. Third Quarter 2011 recorded the highest number of transactions since Second Quarter 2008 – before the downturn. The number of market-wide sales increased 15% from Third Quarter 2010 and 6% from Second Quarter 2011. The growth in sales was propelled by the strength of certain market segments, including studios and one-bedrooms borough-wide, Downtown resales and Upper West Side new developments.


Mitchell Hall, Associate Broker
The Corcoran Group
1 vote Thank Flag Link Tue Oct 4, 2011
Mitchell Hall, Real Estate Pro in New York, NY
Report, Report, Report... LOL What I'm seeing is the ask price maybe 5% over priced but that's still over priced right, as oppose to 10% - 20% over price that I was seeing last year. Make a low ball offer! Get the value you’re looking for by making your money work for you. I have some great sponsor units with unlimited sublet policies GREAT FOR INVESTORS!!!

Talk Soon

Billy Briggs
Licensed Real Estate Salesperson
Prudential Douglas Elliman RE
1995 Broadway New York, NY 10023
(646) 312-9873 (cell)
0 votes Thank Flag Link Sun Oct 16, 2011
This is a matter of what area you are considering. Rentals are in high demand and that will only continue. The most important factor will be what is the infrastructure around the property you are considering. Aside from the space and quality of the apartment itself. The proximity to subways, local shops and conveniences are the most important things in factoring what you can expect to yield over the course of time.
In general, doorman buildings are often not as in demand as they once were.
I have noticed a trend with more people going for simple elevator buildings with laundry as it cuts the premium rental price a bit.
All the best with your search to invest!
0 votes Thank Flag Link Sat Oct 15, 2011
The market in Manhattan, in general, is relatively good. We only see about a 3.5% negotiatiblity factor between list and closing prices and apartments are on the market approximately 136 days. The absorption rate is also quite good at about 9.1%. This is a particularly good time to buy because rents are an all time high and less than 0.7% vacancy throughout the city.
0 votes Thank Flag Link Wed Oct 5, 2011
This is the perfect time to ask this qustion, as this is the time when the major companies have just issued the 3rd Quarter market reports. I will give you the link to that of Greg Heym, Chief Economist for Halstead Properties, BHS, and Terra Holdings below. What I must say though, is that every neighborhood is different. Each neighborhood is a mini-market of its own. That said, you can never go wrong investing in the world's most desirable real estate. The most important thing, however is to make sure you have a skilled, experienced agent helping you find the best property for you, negotiating on your behalf and taking you through each step. We know how to save you lots of money.

Here's the link: http://media.halstead.com/pdf/Halstead_QuarterlyReport_3Q11.pdf

Jenet Levy
Halstead Property, LLC
212 381-4268
0 votes Thank Flag Link Wed Oct 5, 2011
I am going to be bullish on this and say that Manhattan property values ALWAYS go up. Let's face it, if you're considering an investment you are looking to at least the medium term, say 5-7years. Obviously better if you can hold for longer and not so bright if you plan selling earlier. As with most major global centres, property values tend to double every 7-10years, and while we've all been through the wringer lately, there does appear to be a light at the end of the tunnel and it's not necessarily a freight train.
As for rent, which is an important factor here, please check out this Manhattan rental market report.
Best of luck with your plans!
0 votes Thank Flag Link Tue Oct 4, 2011
On average Manhattan apartments appreciate at least 5% a year with some fluctuations. Now prices are on the lower end, so it is a good time to buy. You should carefully consider the area of Manhattan when targeting to renters and type of the building with the least stringent rules on renting out. I did some research on current rental income on Manhattan apartments and it is between 5% and 10% annually. I would be happy to share more info.
0 votes Thank Flag Link Tue Oct 4, 2011
We just released our 3rd qtr 2011 Manhattan Market Report today. Let me share it:
Our rental report will be available in a few days.

I hope you are able to learn from the stats. Should you need help with a purchase and subsequently, rental, please don't hesitate to contact me. I'd be glad to answer your questions and walk you through a successful real estate closing.

Zita Alvarez Lo
Licensed Associate Real Estate Broker
Cell 917-656-8112
Fax 646-497-3968

205 East 42nd Street, 6th floor
New York, NY 10017
0 votes Thank Flag Link Tue Oct 4, 2011
Tough to make money in manhattan in situations like that but as you get out into the other boroughs it starts to make more and more sense. Not sure what your budget is but multi-fam's are my favorite investment in nyc.

917 776 2977
0 votes Thank Flag Link Tue Oct 4, 2011
Hi Joe:
Overall you are looking at flat pricing, but in the studio and 1 bedroom range, the prices are better than the 2 and 3 bedroom range, meaning that there is better value right now in that price point. The folks in the below $1mm range are a bit more nervous and have extended their rentals (hence the historically low vacancy rate of 1%). There are a number of benefits of this range, you are renting to individual people generally or couples which will keep your costs of tenant acquisition low as well as wear and tear on your apartment. The historically low interest rates also generally enable an investor to purchase an apartment and the rents (more or less) will cover mortgage and maintenance at 20% down) assuming no vacancy. Like the other agent before me indicated if you are aware of the Manhattan market you know that you will need to purchase a condo if your intention is rental. I have been a landlord for 10 years, and understand the considerations taken to do what you are going to do. I wish you luck and feel free to call if you have any questions.
Kelly Killian
Bond New York, Columbus Circle Office
0 votes Thank Flag Link Tue Oct 4, 2011
Manhattan was never hard hit like the rest of the country. Also, there is no vacant land here and property is always in high demand, this is why our prices are pretty stable.

You will want to figure out which areas in Manhattan you can afford.

You now have the opportunity to search approximately 20,000 exclusive listings, representing the entire database of residential listings available through the membership of the Real Estate Board of New York (REBNY).

These are the most accurate listings you can find in NY because they come from the brokers themselves; there is no bait and switch, no duplicates, and no opens; and are updated every hour.

Jennifer Chiongbian
SVP/ Associate Broker
Rutenberg Realty NYC
0 votes Thank Flag Link Tue Oct 4, 2011
Depends on locations, plus if you planning to rent you probably need to concentrate on condos or easy or no board co-ops. It would be helpful if you state your budget and desirable areas in order brokers to help you. To get and talk directly to a broker would be the best in your situation. Otherwise it's hard to say. Real Estate market is never stays still.
0 votes Thank Flag Link Tue Oct 4, 2011
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