The Old New York, New York Forum - 2 bedroom apts in NYC

2 bedroom apts in NYC

Has anyone else noticed that rents for 2 bedroom apartments has steeply declined?

When my girlfriend (now wife) and I moved into our 2bedroom in Gramercy, $2700/mo seemed like a bargain. Now I'm seeing rents more in the neighborhood of 2K/mo.

I'm only seeing this drop in 2bedrooms though... studios are still ludicrously expensive. Maybe it has something to do with the way rent-stabilization is neutralized over 2k/mo, so landlords are more reluctant to lower rents below that since they'll be harder to raise again.

Charles Lewis
Monday, September 15, 2003

Charles,
I too have been noticing the drop in prices. Recently, an apartment in my building was rented for exactly the same price it was rented for 3 years ago. This is also interesting in light of the divergence of the price curves of rental and condo/coop pricing. The spread had been widening as a result of rental prces rising slower than purchase price, now with rental prices actually dropping the spread is even wider. As I understand the market, purchase prices will inevitably fall to meet the rental market curve - it will be an interesting couple of years in the NY market

Nick K
Wednesday, September 17, 2003

I tend to agree with you on the trend of purchase prices, but do you know of any data to back up your assertion?

I am relocating to the NYC metro area soon, and I've pretty much decided to be a renter for a while (I currently own), until the spread between rents and purchase prices sorts itself out...

Rob VH
Wednesday, September 17, 2003

Why do you think that the spread between real estate prices and rental prices will decrease by real estate prices going down? Rental prices could go up again, (maybe if the economy picked up) or there could be a little bit of both rents rising and real estate prices dropping.

I'm in bay area and in the same situtation.

doubtful
Wednesday, September 24, 2003

I not certain that housing prices will decrease. I guess I looking at renting in the short term as a free option on the housing market. If rents start to really increase, then I'd buy a house and lock in my monthly housing expense at that time.

Rob VH
Thursday, September 25, 2003

Apparently my "am" key was broken on my keyboard yesterday... sheesh.

Rob VH
Friday, September 26, 2003

Uh are you saying that you actually payed 2700 USD per month for a 2 room apartment?

(It sounds crazy to me unless it was extreemly luxurios but then I am not from the us(I am from denmark).)

Martin
Friday, November 7, 2003

Not quite, but the reality is almost as ludicrous.

I'm paying $2700 USD per month for an apartment with a modest living room, modest kitchen, and two good size bedrooms (about 15x10). Plus, of course, location location location.

The first time I heard a friend's New York rent (I think it was 3K for a floor-size loft in Tribeca) I almost gagged.

BTW: this doesn't include NYC TAX (that's right, not state or federal, but CITY tax) that is as much as what you might expect your property tax to be if you actually owned something instead of renting. Hey, who wants all that lousy equity stinking up the place anyway.

Charles

Charles Lewis
Friday, November 7, 2003