*Looking for the most recent stats on how much it costs to own a 3 bedroom in NYC? Click here for updated numbers!*

Welcome back to my series “How Much Does It Cost to Own”!

Each month, we’ll be looking at different sized apartments to get a sense of what the “median” apartment in either Manhattan or Brooklyn would cost. This series should give you an idea of whether or not you’re in the “ballpark” for the kind of apartment you might want! 

Keep in mind that these figures represent the median for all building types. So coops, condos, walkups, elevators, doorman and non-doorman, amenities, no amenities, new development – they’re all looped in together. 

So let’s turn our attention this month to 3 bedrooms!

Next to 2 bedrooms, 3 bedroom properties are some of the most in demand properties in the city (and sometimes even in more demand, depending on the area). But they also have wide variations in pricing due to differences in square footage and bathroom counts. 

So for that reason, this edition has four rather than two infographics. But keep in mind that 3 bed/2 bath stats are being heavily skewed by luxury new developments. So don’t be too discouraged by the pricing for those! 

Now let’s get a visual on how median price and total monthly costs have shifted over time.

What’s Behind the Numbers

The cost to own a Manhattan 3 bed/1 bath apartment increased thanks to not only higher interest rates but more listings in higher priced areas. Overall monthlies were up as well due to the mix of buildings available. 

For 3 bed/2 bath apartments, higher prices were largely due to interest rates. Asking prices were up only slightly and monthly carrying costs were actually down slightly. 

In Brooklyn, asking prices for 3 bed/1 bath homes went down slightly which helped to offset the impact of higher interest rates. Monthlies also stayed relatively the same. But the monthly cost of ownership still saw a modest increase because of rates. 

Interest rates also caused the overall cost of 3 bed/2 bath apartments in the borough to jump compared to the previous quarter.  Increased demand in line with the spring sales season plus more listings in more expensive neighborhoods also contributed to higher prices. However, monthly carrying costs stayed virtually the same compared to the previous quarter.

Rent vs. Buy – Which Is Better?

When looking at the rent versus buy equation, buying definitely makes sense in Manhattan if you’re looking for a 3 bed/1 bath, as the cost of ownership is well below the average rent, which was $10,126 in March 2024. But if you’re looking for a 3 bed/2 bath, renting still looks quite a bit better. However, the more you can narrow that gap, the more owning your apartment may make sense if you’re planning to stay for longer than 5 years. 

By contrast, in Brooklyn, even with higher interest rates, owning beats out renting for both 3 bed/1 bath and 3 bed/2 bath apartments given that the average monthly rent in Brooklyn in March 2024 was $6532. But there’s a big caveat – the overwhelming bulk of inventory is in south and east Brooklyn. Renting is still a more affordable option in neighborhoods like Dumbo, Brooklyn Heights, Cobble Hill and other more expensive areas. 

***

Want to see some specific listings in each area? Get in touch and I’ll send you a round up!