*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 of owning a 3 bed/1bath in Manhattan increased by less than $50 because the average monthly carrying costs came down by more than $300. This was despite both an interest rate increase and an increase in median price.This underscores why it’s important to look at the whole picture when buying. You should assess not just the asking price and interest rates, but also the monthly carrying costs. 

The cost of owning a 3 bed/2 bath increased compared to August thanks to a much higher median asking price. But this higher median was caused by more expensive listings hitting the market. Even though medians are less sensitive to extremes than averages, they can still be dragged upward if there’s a big enough disparity between the top and bottom halves. 

In Brooklyn, the overall cost of owning a 3 bed/1 bath declined despite higher interest rates. This was thanks to a lower median asking price and monthly costs which remained relatively stable. Like Manhattan, 3 bed/2 bath apartments saw their total cost increase due to a higher median asking price. But the increase was more modest thanks to monthly costs being just a few dollars higher compared to August. 

Renting versus Owning – Which Wins Out?

Owning is the clear winner in both Manhattan and Brooklyn for those willing to purchase a 3 bed/1 bath apartment. The average rent in Manhattan during the month of November 2024 was $11,086 – more than $5000 per month compared to owning. And the average rent in Brooklyn for the same time period was $5996 – more than $1454 per month compared to owning. 

The caveat, of course, is where you want to rent or buy in either borough. Virtually every 3 bed/1 bath listing in Manhattan below the median price was located uptown. And in Brooklyn, most of them were located in South Brooklyn. This doesn’t mean the rent versus buy equation won’t also come out in favor of other neighborhoods. It’s just a reminder that you always need to focus on the specific numbers for the areas you’re interested in. 

By contrast, renting clearly beats out owning for 3 bed/2 bath apartments in Manhattan. The difference there was nearly $3000 per month. But unless that money is being put to use elsewhere investment-wise, switching to home ownership may make sense in the long run if you think you’ll stay for more than 5 to 7 years.

In Brooklyn the price difference is much closer at just a shade over $500. And in this case I would argue that the move to home ownership would be worthwhile. But only if the available inventory sparks your interest. 

Speaking of which…

If you want to see how the rent versus buy equation works out for specific areas, get in touch with me! I’ll create a customized report just for you.