But rumors don’t always reflect the reality of rent-controlled versus rent-stabilized apartments in NYC. Yes, they exist, though the odds of snagging one make it likelier to win the Powerball. That they go for peanuts is another common misconception.

The reality is that the rent for a rent-stabilized unit can range from around $1,000 to upwards of $3,000, depending on the building’s age, whether it has any tax abatements, and other statutory rules.

So, how does one go about finding a rent-regulated apartment in New York City? We’ll get to that in a moment.

First, let’s clear up the confusion between the terms “rent-regulated,” “rent-controlled,” and “rent-stabilized,” as well as explain how they came to be.

What Are Rent-Regulated Apartments, and Where Did They Come From?

“Rent-regulated” is an umbrella term that refers to both rent-controlled and rent-stabilized apartments, similar to how “tubers” may refer to both Idaho potatoes and sweet potatoes.

What Is A Rent-Controlled Apartment?

Rent-controlled units are perhaps the most enigmatic of the two. For starters, they’re among the oldest type of rental dwellings in NYC, having been established in 1943. In November of that year, the city’s Office of Price Administration (OPA) froze rental rates in New York at the same level they were on March 1st, 1943. The OPA emerged from then-U.S. President Franklin D. Roosevelt’s Emergency Price Control Act, which sought to prevent inflation during World War II. The price administration office has since dissolved.

Rent-controlled apartments must be continuously occupied since July 1, 1971, but if the tenant moves out or dies, another family member or person is eligible to continue the rent-controlled status if they lived there for 1-2 years prior.

In 1950, when rent-control laws were formally codified in New York State, there were approximately 2.1 million apartments in NYC that were subject to rent regulation. 

In 2021, however, the city’s Housing and Vacancy Survey reported fewer than 17,000 rent-controlled units in the city.

What Is A Rent-Stabilized Apartment?

Rent-stabilized apartments, on the other hand, made up roughly one-third of the city’s rental stock, with about 1.1 million units. The Rent Stabilization Act of 1969 defined them as apartments in buildings with six or more units built before January 1st, 1974. Tenants who took occupancy after June 30th, 1971, are considered rent-stabilized. Those who maintained occupancy before July 1st, 1971, are generally considered rent-controlled.

While rent-stabilized apartments are typically found in buildings built after 1947 and before 1974,  there are some exceptions for newer buildings that have J-51, 421-a, and 421-g tax benefits. Developers who renovate existing buildings and/or designate 20% of new-construction units as rent-stabilized may qualify for these benefits. The period for these incentives lasts roughly 10 to 35 years, depending on the building’s qualifying status.

What Are the Benefits of Rent-Regulated Apartments?

Besides paying below-market rent, one of the key benefits of living in a rent-controlled or rent-stabilized apartment is that the landlord can’t increase the rent beyond a marginal percentage, as set by the New York City Rent Guidelines Board.

Each year, the board votes on a percentage increase cap for one- and two-year leases that fall under rent stabilization laws. On June 21st, 2022, the board voted to cap rent increases at 3.25% for one-year leases and 5% for two-year leases signed between October 1st, 2022, and September 30th, 2023.

Another benefit is that landlords can’t evict tenants from rent-regulated apartments without a compelling reason, such as nonpayment of rent or violating the lease terms. Stabilized units are also guaranteed a renewal offer with one- and two-year terms, depending on the renter’s preference.

By contrast, tenants in rent-controlled apartments are considered “statutory,” meaning they’re still protected by the Emergency Housing Rent Control Law of 1946. This law doesn’t require landlords to offer renewal leases and makes it even harder for them to file eviction proceedings.

How Much Do Rent-Regulated Apartments Cost in NYC?

Rent-controlled apartments typically have the lowest rental rates in NYC. A 2022 article by The Guardian found that long-term renters in sought-after areas of Manhattan (think: East, West, and Greenwich villages) were paying as little as $820 a month for their rent-controlled units. Most of these were unrenovated and came with little-to-no amenities. But that didn’t stop their leaseholders from staying put since the ’60s and early ‘70s, if not before.

Rent-stabilized apartments, on the other hand, can range from around $1,000 to a max of $2,700 per month, unless the building was built after 1974 and has the 421-a tax abatement. In that case, tenants may sign a rent-stabilized lease with a rent amount that reflects the current market rate.

In other words, rent-stabilized apartments in NYC can cost more than $2,700 a month, so tenants need to do their research and understand what they’re signing before they move in.

The good news is that market-rate units that offer stabilized leases enjoy regulations enforced by the NYS Division of Housing and Community Renewal (DHCR). These include a renewal offer if the resident is in good standing and an annual rent increase percentage cap.

Do I Have a Shot at Finding a Rent-Controlled Apartment?

Given the scarcity of rent-controlled units in NYC, it’s highly unlikely that a new renter without ties to the unit’s original occupant will find one.

The same can be said for rent-stabilized units, except that these are not as rare. After all, rent-stabilized apartments make up roughly 30% of rental units in NYC.

But winning the “Powerball” of affordable housing in the Big Apple isn’t impossible. Those with family members who already live in stabilized units can benefit from the DHCR’s Succession Rights. The law states that family members have the right to a renewal lease or protection from eviction if they resided with the tenant as a primary residence for two years immediately before the permanent departure from the apartment by the original tenant.

A family member can be a spouse, stepson, father-in-law, or anyone else who can prove an “emotional and financial commitment and interdependence between such person(s) and the tenant.” This means a roommate may be eligible if they can prove a close relationship with the leaseholder.

How Can I Tell If an Apartment Is Rent-Stabilized?

We know that rent-stabilized apartments are more commonly found in buildings built before 1974 and that they’re probably not as renovated as newer, fair-market units.

But how can a prospective renter be sure? According to the NYC Rent Guidelines Board, the only way to know for sure is to contact the Office of Rent Administration.

This can be useful when dealing with a landlord who either refuses to confirm whether the apartment is rent-stabilized or claims it isn’t when in fact it is.

It can also clear up any confusion about the units in older buildings that may appear to be stabilized because they haven’t undergone a complete renovation over the years but are, in fact, fair-market or market-rate units.

How To Find a Rent-Stabilized Apartment in NYC

There are several ways prospective renters can hunt for rent-regulated apartments in NYC. The first is to run a rent-regulated building search on the DHCR’s website. Before that, however, renters should take note of the county names and zip codes they’re interested in and narrow their search to those areas. This can save them a lot of time, especially if they’re looking for rent-stabilized units in the highly competitive Brooklyn and Manhattan markets.

Another way to find rent-stabilized apartments in NYC is by checking NYC Housing Connect. This website allows prospective renters to apply for lottery-based affordable housing based on their household count and income levels. The lottery usually precludes applicants who earn more than 80% of the Area Median Income (AMI) for their area, but this varies from building to building. It’s also important to note that these rent-regulated units are in high demand, with long waiting lists and thousands of applicants vying for a single spot.

Lastly, renters can try their luck with online rental platforms. Typing in “rent-stabilized” or “rent-regulated” into the search engine might yield some promising results. When reaching out to the landlord or listing agent, it’s important to ask what type of lease they’re offering and any potential limitations or benefits that come with it.

Is it possible to find a rent-stabilized or rent-controlled apartment in NYC?

Although it may be difficult, it is not impossible to find rent-stabilized and rent-controlled apartments in NYC.

Thankfully, the city has passed numerous laws to protect rent-regulated tenants from eviction and provide some rights for family members of current leaseholders. Additionally, landmark decisions like the Housing Stability and Tenant Protection Act of 2019 prevent landlords from deregulating newly vacated units or charging more than 20% upon vacancy.

By utilizing the DHCR website for building searches, Housing Connect for affordable housing lotteries, and online rental platforms for rent-stabilized units, there’s yet hope for prospective renters who want to live affordably in NYC. Word-of-mouth can also be a powerful tool in the search, so New Yorkers who are in it for the long haul should keep their eyes and ears open.

Good luck!

The post Everything You Need to Know About Rent Control vs. Rent Stabilized in NYC appeared first on CitySignal.

If you find something for a good price – a “normal” price – you’ll likely be living in something resembling a shoebox. On the flip side, a good-sized apartment requires an entire paycheck. 

Whether you’re thinking of moving somewhere in the city or if you’re curious about what you can get at different square footage, we’re breaking it all down right here.

Average NYC Apartments

The average New York apartment is just over 700 square feet. However, the size of new apartment builds is said to be getting bigger. 

For the average renter, that number might seem like a myth, with most attainable prices being reserved for much smaller units. With all of that being said, here is a breakdown of what to expect depending on the square feet.

What does 300 square feet look like?

This 250 sq ft apartment offers just above the bare minimum for tenants. 300 square feet is comparable to a small one-car garage or a standard hotel room. Upon stepping inside, you’ll find a primary living area, a small kitchen with a stove and sink. What sets this particular unit apart is the private bath, something that most units this small won’t offer tenants. Rather, there will be a communal bathroom in the building. Located in the East Village, this studio is listed at $3,700. As for the building itself, amenities can compare from place to place. Though, considering that micro-apartments are considered “budget” options – sometimes even old converted hotels – they usually offer little in the way of amenities and building health. 

Amenities in 300 sq. ft. apartments in NYC:

• Shared Bathrooms
• Shared Laundry or nearby laundry facilities
• Hotplates or stove
• Half-size appliances

What does 400 Square Feet look like?

At 428 sq. ft., this Theater District studio was listed at $3,315. For reference, 400 square feet is the average size of a two-car garage in the U.S. Despite the moderate size, the updated unit comes with a private bathroom and decadent views of the river and city skyline. The living and dining area is large enough to combine both a sleeping arrangement and setup for daytime use. Studios in the 400 square foot range often come fitted with additional storage space like decently sized closets. While the unit above is located in a modern building with amenities from elevator access to a doorman, it’s not a reality for all smaller-unit buildings. 

Amenities in 400 sq. ft. apartments

• Full kitchen
• Dishwasher
• Shared laundry
• Private bath

What does 500 square feet look like?

At 500 sq. ft., the number of bedrooms in an apartment can alternate between a studio or one-bedroom, depending. Keep in mind that this size unit is equivalent to a standard high school classroom! In the case of a 500-square-foot studio, renters can expect a more spacious, open layout, leaning away from the tight quarters found in smaller studios. If the 500-square-foot apartment is a one-bedroom rather than a studio, it’s likely that the bedroom will be a moderate size with enough room for the must-haves. This 500-square-foot unit in Alphabet City in the East Village is currently listed at $3,000 with modern building features. 

Amenities in 500 sq. ft. apartments often include:

• Open floor plans
• Private bath
• Additional storage, including closets and kitchen
• In-unit or on-site laundry
• Fitness centers
• Outdoor space

What does 600 square feet look like?

For those needing more space, apartments in the 600 sq ft range will generally fall under that umbrella. Comparable to a three-car garage, these units often accommodate large studios and, sometimes, single-bedroom units. One example of a one-bedroom apartment at 625 square feet is this Hell’s Kitchen unit. Oftentimes, these larger units enter the luxury space with space and amenities to match. In many cases, the building is newly built or recently renovated, helping to create a modern feel. 

Amenities in 600 sq. ft. apartments include:

• Full kitchen
• Private bath
• Decks or outdoor areas
• Tall ceilings
• Open floorplans
• 24/7 concierge
• Doormen
• In-unit or on-site laundry

What does 700 square feet look like?

As mentioned above, the average size of a New Apartment is 700 square feet, which is equivalent to a quarter of a tennis field. This size unit can teeter into a large one-bedroom or modest two-bedroom, depending on the building and layout. The listing above is a two-bed, one-bath apartment at 720 square feet located in Murray Hill. The unit was listed at $5,699, far above the average price of an NYC apartment while still remaining an average size with amenities that are often seen in this size range. 

Amenities of 700 sq. ft. apartments often include:

• One-two bedroom units
• Private bath
• Plenty of storage
• Full kitchen and appliances
• In unit laundry 
• Doormen 
• Concierge 

What does 800 square feet look like?

Oftentimes, 800 sq ft units tend to be more modern and often include luxury finishes with a size comparable to five standard parking spots. These units usually include one or more bedrooms, as is the case with this two-bedroom, one-bathroom apartment in Kips Bay. At 800 sq ft, this unit was listed for $6,695 and includes attributes like natural light and a parking space, and high-end amenities like a gym, basketball court, tennis court, barbecue grills, private outdoor space, a sun deck, and more.

Amenities of 800 sq. ft. apartments include:

• Plenty of storage
• Full kitchen
• Luxury, full-sized appliances
• In-unit washer and dryer
• 24-hour concierge
• 24-hour doorman
• Building common areas

What does 900 square feet look like?

For those needing a multi-bedroom unit, 900 square feet is usually where you’ll start to see two- or three-bedroom options, ideal for families. For reference, 900 sq ft is just under ⅓ of a tennis field. In the case of this three-bedroom apartment, it is listed in the Astoria at $3,650. The unit exemplifies the trend of needing to fan out from hot spots in the city in order to find an adequate price point, particularly for families. Because of this, these family-geared units are usually bare bones and have just what is needed both inside the unit and in the building. 

Amenities of 900 sq. ft. apartments often include:

• Multi-bedroom floorplans
• In-unit bath
• In-unit or on-site laundry
• Full kitchen
• In-unit bath

What does 1,000 square feet look like?

Creeping up in size, 1,000-foot units are more of a rarity in the city – at least at a manageable price point. With square footage equivalent to two-and-a-half two-car garages, 1000 sq ft is a commodity in the city. This option on Mulberry Street in Little Italy is currently listed at $5,500 and boasts four bedrooms and two bathrooms. Fit for a family or roommates, this unit offers modest-sized living quarters from the bedrooms to the shared spaces. Despite the larger floorplan, there are so many bedrooms in one space that other areas forfeit their square footage, such as the kitchen, reverting back to smaller appliances. Keep in mind, it’s not impossible for there to also be oversized – usually luxury – 1000 square feet single bedroom apartments.

Amenities of 1000 sq. ft. apartments include:

• Multi-bedroom floorplan
• Family/group friendly
• Kitchen space
• In-unit bathroom
• In-unit laundry

Final Thoughts

It’s no secret that New York’s housing market is troubling, but hopefully, this guide provides insight into what you can get for general unit sizes and across price points. Remember that not all units are equal or created for the same purpose. 

Sure, there are sites like RentHop RentCompare, that show you if you’re overpaying for your apartment, but sometimes you’re overpaying for something that saves you more money or time! An 800-square-foot unit on one side of town could be a premier luxury unit, while on the other side of town at the same size can be a cramped two-bedroom in a run-down building.

While these trends can help steer you in the right direction, nothing is definitive. Keep in mind that location, building type, amenities, and the health of the unit also play a huge role in the price point. Happy house hunting! 

The post What Do You Get For Your Square Feet in NYC? appeared first on CitySignal.

We are living in the throes of a seller’s market, where affordable rent is hard to find and even harder to obtain. For those wanting in on the action, timing is everything. Real estate agents advise that some months are more fortuitous than others for finding an affordable home.

The Best Time of Year to Move to New York

According to most real estate agents, the best months to find an apartment are May through June and October through November. Late spring brings plenty of fresh options on the market, while fall has more discounts and deals.

Spring is buzzing in the New York market. More apartments hit the market during and after May than the rest of the year, giving renters plenty to choose from. The only caveat is that other people know this too, creating a competitive and challenging rental market. If you find a place you love- act fast. Apartments come and go quickly in the springtime, while the fall market is a little less intense. 

How Early To Begin Apartment Hunting in NYC

The earlier you look for the next place, the better. With low vacancy rates around 2.6%, there is much more demand than supply.

“Prospective renters should begin looking for their apartment 4-6 weeks before their anticipated move-in date,” explains Allyson Waddell, RentHop’s Success Manager, “Many landlords and management companies will not show an apartment unless they know they can profit from that potential deal within the month.”

More time may be needed if you are considering a condo or co-op, which includes board application approval. Experts recommend searching 2-3 months prior to the anticipatory move date, as board approval can take from 2-4 weeks.  If you are moving somewhere new, that could impact your timeline as well.

“Renters moving to an area with a market they’re unfamiliar with, should consider looking at online listings two months before they wish to move,” says Allyson Waddell, “Researching ahead of time can help paint a picture of rental prices and common amenities in the area. Additionally, renters may find a listing with an availability date that matches their desired move-in time.” 

Cheapest Month to Rent in NYC

Looking across ten major cities, including New York City, RentHop research found the cheapest months to rent between December and March. The most expensive months were May through October. The “peak-to-trough” difference, measuring the highest seasonal rent to the lowest, found dollar savings between $38 and $139 a month for a 1 bedroom and $47 to $176 for two bedrooms. One quick look at RentHop’s stats and trends page shows you just how much rent can differ in NYC over the year.

The pandemic has not been helpful to renters. A year-to-year comparison shows renters have struggled- median rent increased up to 32% across the five boroughs between March 2021 and March 2022. Current New York City rent prices are up 10% since before 2020, slightly lower than the 15% national average. 

Once you find a place that piques your interest, it’s important to jump on the application process. If there’s one thing about New Yorkers- they move fast. 

The Love and Hate Reality of New York Brokers 

Many out-of-state folks are not familiar with broker fees, but they’re a painful part of renting in New York City. As agents work on commission only, a broker fee is a fee paid to a licensed real estate agent or broker for representation during the transaction. Sometimes chosen by the landlord, their fee is covered by the renter.

Is It Worth It To Hire A Broker in NYC?

“I don’t think we would have gotten our current place in Brooklyn if we didn’t pay the broker fee,” says Tina Gray, a renter from Brooklyn “He did genuinely have our back through the process and was trusted by the current homeowner. With that being said, to pay a 13% fee of rent upfront as nearly a sunk cost was painful.”

In New York, broker fees apply to most apartment rentals. Plan to spend around 10-15% of the first year’s rent. Despite the sometimes enormous fee, better deals can be found through a broker or real estate agent, they also may help you get a lef up if you’re looking to move during a busier season. They can assist in more ways than one.

“Most of my work for clients is completed before the first phone call,” explains New York real estate agent Burton Frey Jr. “The primary service agents can provide their clients is guidance earned through experience. What neighborhoods or types of properties are conducive to an individual’s likes, dislikes, and needs? Which management companies or owners are responsive to service requests? A renter may not have the relationships and intel that an agent has with other agents, owners, and management companies.”

If you are ever worried you’re paying too much- just be glad it wasn’t $20,000. The state is currently investigating a $20,000 broker fee charged by Ari Wilford for a rent-stabilized one-bedroom apartment in the Upper West Side. 

What You’ll Need To Apply for an NYC Apartment

So, you’ve found the apartment of your dreams. What next? There are a number of steps between love-at-first-sight and the move-in date, and while they may differ from apartment to apartment, you’ll likely pass through the following steps.

During the application process, you will fill out an application, usually including a background and credit check. In some cases, the landlord will want to meet you.

To help with income verification, the landlord may ask for bank statements. If you do not make the required amount- generally 2.5x the monthly rent, then you will need a guarantor to sign for you. Once credit and income have been verified, it’s time to set the walkthrough and move-in dates. The walkthrough process is very important and is not to be missed. 

Background checks may soon be a thing of the past as the New York City Council debates a law to ban criminal background checks by landlords. Background checks can potentially allow landlords to use criminal history against potential tenants, which is grounds for discrimination. Most landlords remain firmly against the bill, worried it will affect tenant quality. 

Worries about crime remain one of the biggest detractors from moving to New York. Counter to these trends, the demographics of New York depict a different reality- a city in a slow and quiet decline.

The Shifting Demographics of New York City

From the very beginning of the news, residents began moving from the city in droves. Migration panic slowly set in, shifting demographics in real-time. New York City was hit harder than any other city in the United States. 

Starting in 2020, over 160,000 households relocated out of New York, with Manhattan losing the most people at the highest rate.  Outbound migration peaked directly following the start of the pandemic, and the overall population is in decline. Much of Manhattan relocated to suburban enclaves like Rockland County, Westchester County, and Suffolk County. 

New York has processed a number of changes since 2020. Adjustments in office dynamics and the availability of remote working led to low office returns, endangering many local businesses. Working from home has also changed living preferences. Remote workers are often looking for larger square footage so they have space for an office. The National Bureau of Economic Research recently found that US housing costs rose about 15% as a direct result of remote working.

“New York City had one of the largest declines in the first stage of the pandemic and one of the fastest rebounds,” said Rob Warnock, a senior researcher at the rental search platform Apartment List.

While housing prices soared throughout the United States, Manhattan real estate was at first an outlier, experiencing plunging home values as people left in mass exodus. 

“In the past decade, most of the counties [in New York City] have been experiencing out-migration,” Crystal Delbé, a statistician in the population division of the US Census Bureau, told Bloomberg. “And in 2020, which is the first year of the pandemic, we saw that same trend kind of persist.

Of course, this was not permanent. Beginning the second year of the pandemic, the situation reversed as outbound migration slowed and inbound migration increased. As housing expenses and real estate increased throughout the rest of the United States, folks began slowly returning to the big apple. 

Other factors contribute to New York’s population decline. The pandemic brought higher death rates, lower birth rates, and limited international travel and migration; all of which reflect as a loss in population. 

As you might discover in your new neighborhood- New York today is different than the New York of the past. But then again, it always has been. 

The post When Is the Best Time to Rent an Apartment in NYC? appeared first on CitySignal.

We’ve rounded up a list of the most affordable neighborhoods for one-bedroom apartments in NYC as of February 2023 to get you started. Without further ado, here are the options in the 5 boroughs of NYC.

Cheapest Places To Live NYC

Bay Ridge, Brooklyn

Average 1br rent: $2,000

The neighborhood of Bay Ridge in Brooklyn is a historic enclave that offers its residents a quiet and comfortable place to call home. 

And best of all, it is one of the cheapest places to live in NYC. Originally settled by Dutch farmers, the area has seen a great deal of redevelopment in recent years, with new housing and businesses popping up along its tree-lined streets. 

There’s something for everyone in Bay Ridge, from trendy cafes and restaurants to mom-and-pop shops and art galleries. 

The people who live here are warm and welcoming, making it easy to feel at home in this vibrant community with great schools and convenient commutes – great for families!

Sunnyside, Queens

Average 1 br rent: $2,500

Sunnyside Queens is a lively and vibrant neighborhood located in the borough of Queens, New York. It is known for its close-knit community and its diverse population. 

The area is home to many cultures. The streets are alive with activity throughout the day, as people make it to their destinations. Sunnyside has become known for its local restaurants and cafes that cater to all kinds of tastes. 

After dark, Sunnyside transforms into a bustling social scene where one can find bars and pubs that offer live music entertainment or karaoke nights. 

Sunnyside also offers a variety of outdoor activities such as biking trails and parks that allow residents to get out and enjoy nature from within the city limits. 

There’s never a dull moment in Sunnyside, making it one of the best affordable neighborhoods in NYC. 

Bed-Stuy, Brooklyn

Average 1br rent: $2,683

Bed-Stuy, also sometimes referred to as Bedford–Stuyvesant is an iconic, vibrant neighborhood in NYC renowned for its cultural diversity and rich history. 

It’s a melting pot of people from all walks of life, from young families to senior citizens, from those born and raised in the area to newcomers. 

With its grand brownstones, tree-lined blocks, and diverse population, Bed-Stuy is a neighborhood like no other. 

From trendy cafes and chic boutiques to local hot spots, Bed-Stuy has an abundance of great places to explore. 

Whether you’re looking for the best spot to grab a bite or just enjoying a stroll around the block, you will be sure to find something special when exploring Bed-Stuy.

Kew Gardens

Average 1br rent: $1,800

Kew Gardens can be found in Central Queens, about a 30-minute subway ride away from Midtown Manhattan. The neighborhood has been around since 1868 and was one of seven planned garden communities built in the 19th century to 1950. 

There are a lot of single-family, million-dollar homes in the area, but there are also plenty of spacious, cheap rental opportunities. Prime architectural styles are Dutch Colonial Revival, and Beaux-Arts styles, and buildings tend to have spacious apartments that are between four to ten stories and are a mix of both standard rentals and co-ops. A change to the neighborhood makeup has started to occur as homeowners are selling their properties to developers who in turn are building high-rise and flashy new developments. 

While the building make up has started to change, the Hispanic and Asian populations have grown since 2000, providing a haven for members searching for those communities. 

Residents of the area have access to Forest Park to the West and Maple Grove Cemetery, two places that allow New Yorkers to get a breath of fresh air.

Washington Heights

Average 1br rent: $2,200

Washington Heights is an enchanting neighborhood in New York City, located near the Harlem River and boasting stunning views of the Hudson River. 

It’s an incredibly vibrant area that offers a unique blend of culture, cuisine, and entertainment for both locals and visitors alike. Washington Heights also has several parks and green spaces for relaxation and recreation. 

Its close proximity to Manhattan means that locals can easily access all of the shopping, dining, cultural attractions, and nightlife the city has to offer. 

Whether you’re looking for a quick bite or a night out on the town, Washington Heights has something for everyone.

Riverdale, Bronx

Median rent: $2,573

Riverdale is described as being often being confused for the suburb, and no, it’s not the TV show we’re talking about. In the 19th century, Manhattan’s notable figures would build their country estates in the area and later brought wealthy businessman who lived their year round. 

A mix of both single family homes, co-ops and rental buildings, Riverdale is a perfect example of a mix of city and suburbia. Residents get to be in close proximity to the Hudson River, Yonkers and the city.

Astoria, Queens

Average 1br rent: $2,675

Astoria is a historic and vibrant neighborhood in Queens, New York City. Situated along the East River, it is bordered by Long Island City to the west, Sunnyside to the south, and Woodside to the north. 

The area is known for its cultural diversity and history and popular attractions, including Astoria Park, The Museum of the Moving Image, and so much more! 

The neighborhood also has many local restaurants serving up a variety of cuisines from around the world. Not to mention – it’s affordable! 

Harlem, Manhattan

Average 1br rent: $2,600

Historically, Manhattan has never been the cheapest borough to live in NYC, but Harlem provides a little exception. Living in Harlem is a great experience. 

There are many things to do in the neighborhood, and it’s close to all of the amenities you could need. The people who live there are friendly and welcoming, and it’s a safe place to live. 

You’ll find everything you need here, from restaurants to shopping to nightlife. From cultural attractions and historical landmarks to vibrant nightlife and delicious cuisine, there’s something for everyone. 

If you’re looking for a great place to call home, Harlem is a great choice! 

Cheapest Borough to Live in NYC

North Shore, Staten Island 

Average 1br rent: $1,800

If you don’t mind a bit of a commute – including a ferry ride – you might consider adding Staten Island, the cheapest borough in NYC, to your browsing list. The North Shore of Staten Island is made up of multiple neighborhoods but is most notably known for housing West Brighton, New Brighton, St. George, Tompkinsville, Clifton and Port Richmond. 

A few-minute bus ride will get you from your apartment to the Staten Island Ferry that runs 24 hours a day, 7 days a week. From there, you’ll be brought to the south of Manhattan where you can access the rest of the island via a transit method of your choice. You also have easy access to the Verrazano-Narrows Bridge where you can take a bus to get to South Brooklyn.

Residents love that Staten Island is so close to nature, with easy access to hiking trails and fishing spots in nearby Clove Lakes Park. There is also the benefit of being close to shopping as Empire Outlets is right off the ferry stop in St. George. You’re far more isolated from Manhattan than in other boroughs of New York, but some people prefer the space that allows them to disconnect. 

Need a helpful place to start your search in your budget? We leaned heavily on RentHop’s Stats & Trends page to get an idea about what was out there. Moving to NYC (or relocating in NYC) can be challenging and daunting, but don’t fret, hundreds of other people have been in the same boat as you.

The post 9 Most Affordable NYC Neighborhoods appeared first on CitySignal.

Most and Least Affordable Cities to Live In

The 2022 Singles Index, recently published by RentHop, examines the rising costs of renting a studio apartment compared with local incomes to help determine if living alone is affordable in major cities throughout the United States.

“Many young professionals are now faced with high rent prices as a single income earner,” quotes the study “But are certain cities more affordable than others for singles?”

Indeed they are. The least affordable places to live single include the obvious suspects; New York placed an easy first with a median studio cost of $3,016 and rent eating a hefty 43% of local income. “After placing second last year, NYC experienced a meteoric rise in rent prices in 2022,” detailed the RentHop study “which led to it overtaking Miami for our top spot.” The median rent increased over 23% last year.

The second most expensive city to dwell single is Miami. The median rent for a studio is $2,070, costing 37% of annual income. Following Miami in the index are New Orleans, Raleigh and finally Boston.

For contrast, America’s most affordable city for singles is the one and only Albuquerque, New Mexico. With a low median studio rent of $700 a month, residents only spend 15% of their income on rent. Second place is Wichita, Kansas where studios run $595 per month, amounting to only 16% of income. Last but not least are Minneapolis, Seattle, and Colorado Springs.

Cities that became more affordable according to income are Fresno, Fort Worth, Albuquerque, Milwaukee, and El Paso. Cities that became less affordable are Columbus, San Jose, Oklahoma City, Indianapolis, and New York. There were many surprises on the list, including the 35% year-over-year rent increase for Columbus, Ohio. And it was no surprise that New York was most expensive.

“When I moved to New York from Seattle in 2018 I experienced sticker shock at the extreme cost of rent,” says Dave B, a software engineer in East Brooklyn, “I sublet a small room in a two-bedroom Williamsburg walkup for $1100 a month, which at the time was the most I’d ever paid for rent. Since then, I’ve lived in two other apartments, and rents have continued to rise. This past year my rent rose 16%.”

In another report by Business Insider, a number of cities were shown to have nearly identical costs for one and two-bedroom apartments. Apartment hunting in Cleveland, New York, and Detroit, you’ll find there is less than a $100 difference between the cost of a one-bedroom and a two-bedroom apartment. All these metrics illuminate just how difficult the rental market has become for one of the largest demographics in America. But people like Dave are finding ways to make it work.

“Has this stressed me out per se? No, but I’m lucky to have a good paying job, live a minimalist lifestyle, and choose to live with roommates which reduces the cost burden imposed by the high rents,” explains Dave B, “While financially I could live alone in Brooklyn, this would dramatically impact my ability to enjoy the city and save for the future. This is common amongst single people in New York. Living alone in a 1 bedroom or studio apartment is expensive, and there is a noticeable lack of such units as you get further from the city anyway, so you choose to live with roommates to cut costs.”  

The Singles Tax

Why is it so hard to live affordably while single? In America, we suffer the singles tax. Singles are economically penalized in a country that financially incentivizes marriage and family. Tax codes favor marriage, and so do many employers.

Examples of the singles tax can be found in more than just rent prices. Even hotels and cruise lines charge a “single supplement” when only one person will be using their services.

Younger generations are taking longer to get married and have kids, if they choose to do either at all. US census data showed 35% of adults between ages 25 and 50 are unmarried. In 1970 this figure measured a mere 9%. Millennials are not interested in marrying right away as earlier generations had, and many prioritize education, career and travel before marriage.

Research by Pew found that married adults have higher average earnings than single adults, making them financially better off. This is known as a “wage premium.” Employment demographics also change according to marital status. These numbers are especially noticeable amongst men.

For instance, 91% of partnered men are employed versus 73% of unpartnered men. Unpartnered men earn a median income of $35,600 in 2019, compared to earnings of $57,000 for the partnered. For contrast, partnered women earn a median of $40,000 compared to unpartnered women with median earnings of  $32,000.

Last but not least, taxes also reflect these trends. Couples with one partner earning the majority of dual-income can benefit from a “marriage bonus” that allows the higher earner’s bracket to be dropped in joint filing. Partners who file together, in general, pay less in taxes per capita. Healthcare, social security, and retirement echo these sentiments; spouses can receive up to 50% of their partner’s Social Security benefits. IRA and Roth IRA income limits are also higher for married couples, allowing them to put more money away in savings.

Save $30k by Splitting Rent As a Couple

Couples who live together save the most money. The average 1-bedroom apartment in New York costs a staggering $3,900, up 14.5% from 2021. This is a rude awakening after pandemic pricing when many renters were able to upgrade their leases and capitalize on high vacancy rent deals. Over the past year, a major reversal played out as rents not only climbed back but shot well past pre-pandemic numbers. As low and affordable pre-pandemic leases begin to expire, they are being replaced with more expensive alternatives.

For a single person to pay $3,900 a month is a lot- couples who live together can drastically expand their options in real estate and can afford nicer apartments.

A 2022 study by StreetEasy found that a typical New York City couple saves nearly $30k by cohabitating with one another. Using calculations based on Q4 2021 rent metrics- couples living in Manhattan save on average $19,500 per person per year. The savings are similar but slightly less in other boroughs where rent is already typically cheaper. Savings equated to around $11,700 in Queens and $13,200 in Brooklyn. 

Moving in together is an easy way to save without sacrificing space, size, location, or amenities. It’s also nicer to live with one person than a slew of roommates.

The savings that can be gotten from splitting rent quickly pile into enough to cover student loans or even the down payment on a house. Looking at these figures, a couple could save nearly enough for the down payment of a home in less than ten years.

Being a Single Woman is the Most Expensive

Single people not only pay more in expenses, but also are paid less. But going even further, single women pay the absolute most. 

Studies find that American women have less money saved for retirement and spend about $15,000 more on healthcare during retirement than men do on average. Women also live longer, an upside that plays out as a financial downside. Living longer requires more retirement savings and money to get by.

Even if today’s women aren’t ready to marry in their 20s, that doesn’t mean they want to stay living at home with their parents. Most women, about 65%, would rather not wait until marriage to purchase a home. Unfortunately for many women, this becomes increasingly unaffordable between the market, wages, and a 40-year high inflation rate. The economy of today is a hard landscape for this bracket.

Money Can’t Buy Happiness

Of course, as we all know: money can’t buy happiness. Many people prefer being single, even if it is more costly, and ultimately whatever leads to happiness and sustainability is the most important decision. While it’s easy to yearn for a partner, New York City provides many avenues for singles to flourish through a large population, plentiful transportation, and a never-ending calendar of events to attend.

“Studies show that a woman who lives alone is more likely to have an active social life and maintain family bonds,” says Kate Bolick in her book Spinster: Making a Life of One’s Own, “not because she has extra time on her hands, but because these are the bonds that sustain her.”

The post Is It More Expensive To Be Single? The Economic Disadvantage of Living Single appeared first on CitySignal.

When I was a real estate agent in the 2010s, my office manager would urge me to target NYC’s burgeoning roommate population. Roommates were, after all, a big business in Manhattan real estate. They continue to be today, with 30 percent of adults aged 23 to 65 sharing apartments in NYC, as reported by Zillow in 2017.

Unlike my discerning clientele of wealthy COOs and socialites, these roommates were usually young professionals fresh out of college, looking to make their mark on the world. Their flexible apartment criteria meant you could rent them almost anything, from a shoe box in the West Village to a closet in Tribeca.

They hit the pavement with a pep in their step, armed with offer letters signed by their newest employers, searching for the perfect place to share with friends and strangers alike.

As someone who has lived with friends and strangers myself, not only did I engage in common roommate disagreements, but I also had a front-row seat to the bickering and antics of others. From splitting the rent unevenly to squabbling over long-term guests, I’ve heard it all.

Here are some common disagreements among roommates that I’ve come across in my years working in Manhattan real estate:

Rent & Utilities: Who Pays For What?

Rent is expensive in NYC. And utilities can add up quickly, too. Landlords will likely include heat and water, but electricity, gas, and internet are typically not included in the rent. This can be a source of common roommate disagreements in NYC because — let’s face it — some people are better at conserving energy than others. Just ask Roommate A, who isn’t bothered by NYC’s hot summer nights and has to split the electric bill evenly with Roommate B, who leaves the AC blasting 24/7. Or Roommate C who runs the washer and dryer every other day, while Roommate D only does laundry once every two weeks.

Another common roommate disagreement in NYC is who pays for household items like toilet paper, paper towels, and cleaning supplies. If Roommate B stocks up at Duane Reade this week, should Roommate C be expected to cover the same amount next week?

Disagreements may also arise if one roommate expects the other(s) to divide the rent equally even though the bedrooms are not equal in size. This issue comes up commonly in converted two- or three-bedroom apartments where one bedroom is significantly smaller than the other or has a pressurized wall that doesn’t go up to the ceiling, eliminating privacy.

In my humble experience, it seems unreasonable to divvy up the rent equally for bedrooms that are not equal in size or have different amenities, such as en-suite bathrooms and walk-in closets. It also feels petty to fight over who pays for what household items. After all, common sense dictates that if you use more of something, you should replace it.

One way to solve the issue of rent is to have each roommate pay proportionally based on the size of each room and/or any additional amenities it comes with. (Common areas like living rooms and bathrooms needn’t be factored into this equation since their equal usage is implied.)

Those who are math-averse (like me) may use a rent-splitting app like Splitwise, which allows roommates to input their monthly rents and then add or subtract common expenses to see who owes what.

House Chores: Who Cleans What and When?

Another common source of roommate disagreements in NYC is house chores. Who cleans the bathroom? Who takes out the trash? Who does the dishes? And when?

These are valid questions that should be answered before signing a lease. Some people are neat freaks and can’t stand living in a messy apartment without so much as a coaster to prevent those pesky rings from forming on the coffee table. Others couldn’t care less.

One possible solution to this common roommate problem in NYC is to create a rotating cleaning schedule (which may or may not cling to a refrigerator magnet in the kitchen). For example, this week Roommate A cleans the bathroom, Roommate B takes out the trash, and Roommate C does the dishes. Then next week, the roles are reversed.

Another solution is to budget for a professional cleaning service to come in once a week or once every two weeks. This can be pricey, but it’s worth it to avoid common roommate disagreements in NYC.

Roommate Guests: Who Can Have Them, and For How Long?

Guests are another common source of tension among roommates. Some people are social butterflies and will manifest a constant stream of visitors, while others prefer to keep their socializing to a minimum.

One of the most challenging aspects is hosting out-of-town relatives for long periods. The roommates imposing said relatives may brush off the inconvenience (because it is not inconvenient to them), claiming that this is how things are done in their respective cultures or within their unique family dynamic, leaving the other roommates seething with resentment.

Still, others will straight-up add another roommate to the mix by moving their significant other in without so much as a discussion with the other people they live with. Sometimes they move them in facetiously or by attrition as if to say, “Whoopsie! I hope you don’t mind that I added my boyfriend to the lease!” Or perhaps it’s the boyfriend who just won’t go home because his roommates are constantly disagreeing.

The common thread here is a lack of communication among roommates about expectations, boundaries, and common courtesy. One solution is to discuss guests and significant others before signing the lease. That way, everyone is on the same page from the start.

Solution 2.0 is to sign a legally-binding Roommate Agreement (yes, that’s a thing), which stipulates the rules about guests, house chores, common areas, etc.

Templates for this agreement can be found online, or you can create your own. Either way, make sure that everyone signs the agreement before moving in, so there’s no confusion about expectations later on.

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Decor: Who Gets to Decide?

Let’s say you move in with Roommate A whose giant neon red-and-white Budweiser sign can only fit on the living room wall. It clashes horribly with Roommate B’s faux fur reading chair and Roommate C’s DIY industrial-pipe coffee table. Don’t even get me started on the cow-hide rug in the middle of the room (a gift from Roommate A’s mom).

A possible solution to common roommate disagreements about decor is to create an inventory of who owns what before moving in and whether or not they’re open to selling, trading, or giving away their belongings. That way, everyone knows what they’re getting into and there are no surprises (or arguments) down the road.

Another solution is to allow each person to decorate their bedroom however they want but to come to a consensus about common areas like the living room, kitchen, and bathroom. It’s important to be respectful of everyone’s taste when discussing potential arrangements and to be flexible with decor items, including the neon Budweiser sign from Roommate A’s college days.

Communication: The Key to Avoiding Roommate Disagreements

Our last common roommate disagreement in NYC is about communication (or the lack thereof).

It’s common for roommates to avoid conflict at all costs. Some will go so far as to move out when the other roommates are away for the holidays or on vacation. Others will text each other when they’re in the same apartment (in different rooms) to avoid an in-person conversation that may quickly escalate into a full-blown argument or fight.

This, of course, is not a sustainable solution to common disagreements among roommates in NYC.

The key to avoiding these scenarios is to communicate with each other openly and honestly about your expectations, needs, and wants. Perhaps it’s even more important to make it safe for your roommates to express their needs and wants without fear of judgment or retaliation, as one serial roommate learned in the aftermath of her experience, which included over 30 co-living situations.

Sometimes communicating before you sign the lease can help you find the perfect roommate to share your space. Other times, it’s helpful to have a monthly or quarterly check-in to see how everyone is doing and to identify any potential problems before they fester and become bigger issues.

With these solutions in mind, common roommate disagreements in NYC don’t have to be a cause for stress or anxiety. On the contrary, they can be a bonding experience that brings you closer to the people you live with, especially in a post-pandemic world where many are spending more time at home than ever before.

The post Ask An Agent: Common Roommate Disagreements and How To Deal With Them appeared first on CitySignal.

To add to the fun, we’ve rounded up what you would be able to get in five New York neighborhoods for $2,000 versus $10,000 a month. Happy hunting! Or browsing, if you’re into that.

Greenwich Village

West 11th Street

$2,250

Studio, Shared Bath

Small but mighty, this unit has everything you need for modest living. The renovated studio, though private, shares a restroom with other tenants. With large windows, high ceilings, lush hardwoods, and an open concept, it’s described as feeling spacious.

One of the true highlights is the location, with short walks to Jefferson Market Garden (former location of the House of D), Union Square, and Washington Square Park. Residents also have quick access to numerous transportation lines and MTA stops.

vs.

East 12th Street & 3rd Avenue

$10,995

3 Bedroom, 2 Bathroom

This corner lot offers three bedrooms and two bathrooms, with views of the courtyard plus views of 12th Street. In addition to the split bedrooms, there is also a main bedroom with an en-suite bath. 

Home chefs will love the property as there is a gourmet kitchen featuring full-sized luxury appliances and decadent fixtures. Only three minutes away is access to L, 4, 5, 6, and 6X.

Building amenities:

• Doorman
• Elevator
• In-building laundry
• Courtyard
• Storage facilities

Chelsea

400 West 20th Street

$2,050

Private room, Shared Bathroom

Chelsea doesn’t offer much in the way of affordable housing options. For $2,000, you can rent a small, private room in a shared four-bedroom, one-bath apartment from June Homes. However, utilities are not included in this price. Common areas and benefits of the apartment include air conditioning, a kitchen with a dishwasher, microwave, refrigerator, and oven, plus a living room to relax in. Residents can enjoy the convenient location with convenient access to the A, C, and E.

vs. 

214 West 30th Street #8

$10,995

5 Bedroom, 2 Bathroom

At roughly 2,200 sq ft, this full-sized loft offers a captivating combination of space and style. With recent renovations and amenities like sweeping views and an in-unit washer and dryer, it’s easy to picture settling in here. 

Within the apartment, tenants will find closets for each of the bedrooms, additional space to function as a closet or extra bedroom, a chef’s kitchen with a beautiful island, a private balcony, and AC.

Building amenities:

• Elevator
• Lobby
• Full-floor apartments (eleven of twelve stories)
• Outdoor space

East Village

355 East 4th Street

$2,000

Private Room, Shared bathroom

At roughly 100 square feet, this bedroom leaves just enough room for the necessities and nothing more. It is just one of three bedrooms in the property, with a shared common space complete with a living room and kitchen. 

For those looking to be a part of the action for an affordable price, sharing a unit is one of the few choices available in Alphabet City, East Village.

Home amenities:

• Smart lock
• Heating (radiator)
• Wi-Fi

vs.

East 5th Street

$9,995

4 Bedroom, 2.5 Bathroom

At the top of the scale is this East Village duplex apartment with four bedrooms plus two extra rooms to be used as recreation or however necessary. 

Recently renovated, the property is updated in modernity while maintaining the charm, including features like the marble bathrooms, an in-unit washer and dryer, a kitchen complete with granite countertops and stainless-steel appliances, and exposed brick. The location also offers easy access to the 6, N, and R trains, plus M15 bus service.

Building amenities:

• Private outdoor space
• Pets allowed

Bushwick

113 Wyckoff Avenue #1L

$2,000

1 Bedroom, 1 Bathroom

This recently renovated one-bedroom garden apartment puts tenants in the heart of Bushwick. Featured include the hardwood floors, high ceilings, and abundant closets, not to mention the large bedroom with enough space to be creative. 

Included in the price are heat and hot water. Tenants can enjoy easy access to the L train, which is only minutes away. Residents can also enjoy a shared backyard space.

Building amenities:

• Private outdoor space
• Animals allowed

vs. 

358 Irving Avenue #3B

$7,250

5 Bed, 4 Bath

At the higher end of units in Bushwick, this apartment is ideal for roommates are a family who needs extra space to expand. Things to love here include the AC throughout the apartment, including in each room, and the kitchen, which features stainless steel appliances, a dishwasher, and a microwave. 

Plus, the unit comes with a video intercom and gorgeous hardwoods throughout. The nearby Myrtle-Wycoff station offers easy access to M and L trains.

Building amenities

• Gym
• Furnished rooftop
• Laundry room

Flushing 

141-43 25th Road

$2,100

A spacious two-bedroom apartment is what you can get in Flushing for just $2,100 a month. 

The unit features conveniences like stainless steel appliances in the custom designed kitchen, and refinished hardwood floors, plus both bedrooms are large enough to each fit a king bed, something you rarely see in city living, 

Building amenities:

• Heat and hot water included
• Easy street parking

vs. 

57-09 134th Street

$1,399,000

3 bedrooms, 2 bathrooms

For close to $10,000 a month, you can purchase a home in Flushing. An estimated mortgage on this home taps out at just over $8,000 a month. 

In addition to convenience, this home offers space, a detached two-car garage, a multi-car driveway, and plenty of potential to make it your own. Not to mention, there is a finished basement with a separate entrance – perfect for multi-generational living!

The post What You Get in These New York Neighborhoods: $2,000 vs. $10,000 appeared first on CitySignal.

Home prices rose to new highs during the pandemic. As prices skyrocketed, increasing scrutiny into realtor commissions followed suit. CitySignal previously reported on the 2021 Department of Justice (DOJ) investigation into realtor commissions and fees in the United States. There was a similar federal investigation into broker commissions in Canada shortly after the American investigation commenced.

The DOJ investigation alleged that brokerages and realtor associations made commission rates less competitive through price-fixing. As an example, realtors often steered buyers away from homes listed with low commissions by falsely claiming that the property is overpriced, that the seller won’t negotiate on the sales price, or other potentially fraudulent claims. The federal investigation could potentially lead to an effective net reduction in commission structures. A new report details how this could become a reality.

NYC Realtor Commissions are “an Anomaly”

Real estate commissions for buyer agents are three times higher in Manhattan than in southern and eastern Brooklyn, according to new reporting from the Consumer Federation of America (CFA), a consumer watchdog group. The report “Diverse Real Estate Commissions: The New York City Residential Brokerage Anomaly”, points out some peculiarities in the way New York establishes real estate commission rates.

The main goal of the report was to investigate why the Brooklyn MLS, which operates in Southern and Eastern Brooklyn, could operate with a median 3% realtor commission fee and turn a profit. In fact, buyer agents who operate in the Brooklyn MLS only receive a median of 1% commission.

The report’s author, Stephen Brobeck, refers to the NYC realtor commission structure, and especially the Brooklyn MLS, as an anomaly since nationwide realtor commissions consistently average 5-6% nationally. He reviewed 6 service areas in the NYC area, all with different commission rates. The table below represents the average commission rate for buyer agents in the six listing areas the report analyzed.

Instead of having one uniform MLS, there are three main listing services in the New York City area, each with its own rules and mandates regarding commission rates. The report notes the significance of this phenomenon, as each listing service experiments with different commission and service structures. The three main listing services, along with their commission structures and rules, are the following:

• The RLS (Residential Listing Service), formed by the Real Estate Board of New York (REBNY), operates in and commands the vast majority of home sales in Manhattan and the wealthy brownstone areas of Brooklyn closest to Manhattan, with possible plans to expand into other areas of Brooklyn. Commissions for homes sold through the RLS have 5-6% commission rates, with a requirement that half of commissions go to the buyer agent.
• The OneKey MLS is affiliated with NAR and dominates sales in all areas outside Manhattan and Brooklyn. It doesn’t require buyer agent compensation to be the same as the listing agent’s commission, but it does conform to the NAR rule that buyer brokers receive an offer of compensation. If the buyer agent doesn’t receive compensation, the seller’s agent can’t submit a listing.
• The Brooklyn MLS operates predominantly in southern and eastern Brooklyn, and succeeded from the MLS associated with the National Association of Realtors (NAR) to establish their own rules and regulations. The Brooklyn MLS does not require brokers to offer commissions to buyer brokers. Median commissions are 3%, while buyer agents get 1%.

Main Conclusions of the Report

The Consumer Federation of America’s (CFA) 20-page report on commission rates in the NYC area isn’t exactly the most exciting read. However, anyone who wants to sell or buy a home nationwide should pay attention to the conclusions of the report.

The Brooklyn MLS is an anomaly, as listings sold through the service average a median 3% commission, compared to the national median of 5-6%. The report’s author Stephen Brobeck concluded that the Brooklyn MLS proves that realtors can charge a lower commission rate than the typical 5-6% and still make a profit. Most importantly, the Brooklyn MLS is able to charge low commission rates partially because buyer broker commissions aren’t required and are typically low when included.

The Brooklyn MLS operates in areas of Brooklyn that have some of the lowest home prices in NYC, yet agents there can still turn a profit. Home prices in New York City are high but are the lowest in areas with the lowest commission rates.

Brobeck also concluded that “the presence of just one MLS with low commissions in an area can drive down rates in other MLSs operating in the same or nearby areas.”

“The New York City residential real estate market shows that some rate competition among brokers and agents is possible,” Brobeck added.

In the report, Brobeck advocated that a commission structure similar to the Brooklyn MLS be copied on a national level and even called for a complete ban on buyer broker commissions.

“The NYC market shows that when listing agents are not required to offer non-negotiable commissions to buyer agents, rates decline,” Brobeck said. “However, when these commissions are required, and listing agents must provide equal compensation to buyer agents, rates remain high.”

“Uncoupling rates would likely stimulate not only greater rate competition, but also needed experimentation with different rate and service models,” Brobeck concluded.

In short, banning buyer broker commissions would reduce commission rates. Dr. Panle Jia Barwick, a professor in the department of economics at Cornell, came to a similar conclusion.

According to Dr. Barwick’s research, if buyer broker commission rules were eliminated, services would become more competitively priced since buyers would have to pay their agent’s commission fee. They could negotiate the rate, or even elect to go without a buyer’s agent if desired. Sellers would also have the power to negotiate rates with their listing agent. Other countries like Australia and the U.K. have similar rules in place. The change could reduce typical commission rates by one to two percent over a couple of years, according to Dr. Barwick.

Can Home Sellers Negotiate a Lower Commission Rate?

CFA encouraged NYC consumers, especially those who list their property under REBNY, to attempt to negotiate lower commission rates.

“In most instances, those selling homes in Manhattan are being ripped off by high commission rates,” Brobeck said in the report. “On the sale of a $1 million condo, agents rarely deserve $60,000 in compensation, the price of two new economy cars or one expensive one.”

Unfortunately, consumers have very little power to negotiate lower commission rates unless they have a highly sought-after property. However, it’s possible that realtor commission structures could change in the future, and allow consumers greater negotiating power in the process.

The post “An Anomaly”: What the Nation Can Learn From Realtor Commissions in NYC appeared first on CitySignal.

Hannah’s Story

Having trained and performed in New York for six summers, the move to the city at only 16 didn’t scare her. Because she graduated early from high school, Hannah was free to live the life she’d dreamed of, which excited her more than made her nervous.

Sure, the move at a young age came with its fair share of challenges, like being unable to legally sign things or go to the doctor, but since when have New Yorkers ever been afraid of a little challenge?

Upon relocating to the city, it was important for her to keep her “why” at the forefront of everything she did. In fact, that is one of the biggest pieces of advice she carries with her for those pursuing their own dreams, especially in the city.

Knowing what your why is and keeping in mind that every day is a choice helps to keep what matters at the forefront. 

“It is so easy to get caught up in the hustle of living in NYC- between work, rehearsals, and the odd jobs to make ends meet, it is so easy to fill your day to the brim.” Hannah goes on to say,  “remember to take moments to enjoy life and recognize that every day you are choosing where you live…the hustle is just part of the process.”

A Typical New York Day for Hannah

Like many New Yorkers, Hannah’s days were filled to the brim but often looked different from one day to the next. Because she was a student studying for her bachelor’s degree and dance, plus working, there were days when she would leave once the sun came up and didn’t return home until midnight.

This busy schedule helped to keep Hannah from feeling burnt out in her apartment. Instead, the space, regardless of how small it was, acted as a reprieve and place to rest her head above all else.

While Hannah’s days usually end late, they also begin early. They often start with: 

• A 6:30 am wakeup call where she walks the dog
• Walking or taking the subway to Ailey (about a 20-block distance from her UWS space)
• Ailey School classes into the late afternoon (ballet, Horton, Graham Technique, Pointe, Composition, Contemporary)
• A mixture of rehearsals, studio time, studying, and work

In addition to attending Ailey School, Hannah also studied online with the University of Tennessee. She was vying toward her bachelor’s degree in philosophy and psychology but has since pivoted to an education-based study plan. Throughout the day, Hannah would work on her degree work. If she didn’t have time between classes at Ailey, she would stay up late at night to finish her coursework.

When she wasn’t schooling or practicing, Hannah was running around the city, making ends meet. Two of her more common jobs included nannying and working at the famed Cookie Do. Nannying included picking up children from school and making sure they got home or to their after-school program.

Alternatively, days at Cookie Do were filled with crafting edible cookie dough in the company’s flagship West Village shop or commuting to pop-ups in places like Bryant Park, Dumbo, and the Upper East Side. When all was said and done, Hannah was working 25–40-hour work weeks in addition to her other obligations.

Though there was limited time for fun, some of her favorite activities included modeling, classes at Steps on Broadway, or going out with friends. By the time the day was over, there wasn’t much more to do than to relax in the spaces she’s come to call home, even if temporarily.

The Buildings She Loved

Did you truly live the New York experience if you didn’t live in at least one (usually more) apartment that put HGTV’s tiny home shows to shame? Unlikely.

For Hannah, the experience of rotating “modest” apartments was all she knew when living in New York. Her experience when it came to choosing real estate was fairly unique.

Most of Hannah’s living situations were made possible by touring dance friends who allowed her to sublet their apartments while they were away. That means consistently revolving around the city, living in places like Washington Heights upon first arriving, the Village, and the Upper West Side.  

Of all the places she lived, her favorite space had to have been the one on the Upper West Side, and for more reasons than one. It was the first New York apartment that was her own – meaning it wasn’t a sublet.

At a whopping 175 square feet, the studio was located on the 13th floor at the corner of 75th and Amsterdam and offered impeccable views of Central Park. The space was just large enough to house a mini fridge, convection oven, and two stove top burners and for Hannah to do the splits and touch each opposite wall of the space.

Despite the small size, Hannah looks back on the space affectionately, continually looking for and focusing on the best aspect of the circumstances.

She describes highlights, including the large window and picturesque views that allowed for warmth to flood in, highlighting the space’s white walls, white granite countertops, and beautiful hardwood floors.

The retro optimism and affection help to certify her love for the city despite no longer being in it.

 

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A post shared by Hannah Hayward (@_gracegirl)

How She Made Her Spaces Feel Like Home

If you find yourself living in an apartment less than 200 square feet (just over the average size of one American bedroom). What do you do to make it feel like a home? Decorate!

Skipping the décor process due to limited space is not recommended if you want to make your house (even if temporary) feel like a home. For Hannah, no space was complete without having some sort of personalization.

Hannah says, “I decorated every apartment I lived in, even if I was only there for a short time. I feel that decoration is integral to making the space feel like your own. At the end of the day, my apartment didn’t feel like home without my decorations… Pictures of family and friends, throw pillows, and my color scheme. I think that decoration is crucial.”

If you’re worried about overwhelming a small space with décor, there are minimalistic approaches to interior design that can make your space feel like your own without being chaotic.

How to Work with Minimal Space

Hannah may have some tricks for you, and you’ll want to listen, especially given the fact that she regularly had family and friends staying with her in these tiny apartments!

When it comes to storage, it’s more than necessary to be creative with your solutions. One trick Hannah used when first moving to the city was purchasing a tri-fold bed.

The multi-functional furniture allows someone to open the device for a double bed at night and to fold it up into a rectangle to be used as a couch during the day.

When working with such tiny spaces, the furniture and storage purchased need to be just as adaptable as the renter. Later on, Hannah made the luxurious switch to a lofted twin bed and stuck that tri-fold mattress under the bed to save for a rainy day, extra seating, or, you guessed it – guests. Living alone meant that any time her family was in town, there would be space for them to crash. As her sister, also a dancer, visited the City often to train, this was an ideal scenario. 

Another choice Hannah routinely made out of necessity was only purchasing what she needed as she needed it. This went for both clothing and groceries. While there are more and more innovative design choices being crafted every year, the reality remains that no space = no space.

For Hannah, that meant only purchasing a week’s worth of groceries at a time and maintaining a seasonal wardrobe. Excess clothing was thrifted or taken to her hometown until the seasons changed, and she switched out her wardrobe again.

How the Pandemic Shifted Her Dreams

New Yorkers know all too well just how transformative COVID-19 was. In the midst of devastating losses and daunting statistics, there were pockets of joy, like in the form of revelations. For Hannah, the pandemic completely shifted her world, much as it did for the rest of the world.

When the pandemic hit and everything began shutting down in the city, Hannah decided to leave. She returned home to Knoxville, Tennessee, where she currently resides. What started as a hopeful one- or two-month hideaway quickly became the new normal.

It was through this move and within the pandemic that Hannah discovered a new course for her life – an equally passion-driven one. The pandemic highlighted Hannah’s desire to connect with others, specifically children, helping them to learn to dance.

This move combines both her long-standing passion for teaching and the thing she wants to spend the rest of her life doing – dancing. Along with this shift was the creation of her nonprofit, centered around providing equal access to arts education for children in her hometown area.

This experience of moving back home and trudging forward helped Hannah, like many others, to realize that “making it” or making a difference is not exclusive to one coast or the other as many believe. Hannah discovered that the impact she made for disadvantaged and marginalized children right in the heart of her hometown is as equally meaningful as the work she did for years in New York City.

Despite being away from the city now, a piece of her will always be New York-based and driven. As the saying goes, “you can take the girl out of the city, but you can’t take the city out of the girl.” Speaking to this further, Hannah goes on to say, “even though I no longer live there, the remnants of the city are still in my bones.”

Hannah continues to sow the seed of ambition, grit, and passion wherever she goes, just as it was cemented in her long ago.

Thinking of Moving to New York? Keep These Things in Mind

Hannah’s story offers a unique perspective into what it means to be a New Yorker, and the experience can vary for everyone. There are plenty of important lessons within her story, and these are some to keep in mind when navigating the city for yourself, especially if you’re a fellow dream chaser.

Things Can and Will Change: Roll with It

If there’s one thing that New York is not, it’s stagnant. New York would not be New York if it didn’t consistently change and reinvent itself. While this happened for Hannah while living in the city, including constantly adjusting to what she called “home,” it also set her on a new trajectory for life.

 

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A post shared by Hannah Hayward (@_gracegirl)

Hannah’s last semester at Ailey was when the world completely shut down. Rather than letting the shifts shut down her dreams, she found new ones and readjusted them. Successfully moving to New York means staying flexible. 

Making the Best of What You Have

Nothing will ever be perfect, especially not in NYC. Though Hannah speaks of her picture frame views of Central Park and the Ghostbusters towers as being close to it, the reality is things are going to be challenging.

In the case of Hannah, revolving sublets and a tiny apartment to call her own were highlights of living in NYC. She decorated and made the spaces her own with the resources she had, regardless of how temporary or challenging it was. Though cynicism is a key characteristic of being a New Yorker, the constant desire to be better and make the best of things is a universal desire behind the façade.

Find Your Purpose

While living in NYC, Hannah discovered how to look like she had a purpose regardless of where she was going or what she was doing. Even if she had no idea what she was doing, she and every other New Yorker were making it seem as though they did.

Sure, this lesson can be chalked up to “faking it until you make it,” but there’s also an important lesson on finding your purpose too. That’s something that has stuck with Hannah today, beyond the New York City limits, and continues to influence her life. Even if someone doesn’t know what they’re doing or continually trips up along the way – stay focused on finding the purpose.

One day, like Hannah, you’ll be able to say, “no matter where I live, NYC will always have a huge part of my history and my heart.”

Interested in following Hannah’s journey? You can find her on Instagram @_gracegirl and support her work as a founding member of Tessera Dance Theater, a Knoxville 501(c)(3) dedicated to ensuring access for all to a world-class dance education.

The post Hannah Hayward on Making it Work in the Big City and Never Taking Things for Granted appeared first on CitySignal.

According to the Post, agent Ari Wilford had told the tenant that the fee would financially make sense in the end. The renter had even managed a $500 discount before closing the deal, but even then, had to take a large sum out of their savings to pay for it. 

In New York’s competitive housing market, brokers often charge up to 15% of a year’s rent in broker’s fees, but a fee of $20,000 is unheard of. The fact that the apartment wasn’t even ready on move-in day makes the large sum even harder to believe. The new tenant had to cough up even more cash to put their belongings in storage while they waited for a fresh coat of paint to be applied. 

Taking a closer look at the current rental market in NYC 

It’s no secret that prospective tenants have to fight long and hard to secure their ideal apartment in the City. Many either compromise on desired features, or pay extra to land a livable space. According to Douglas Elliman’s July market reports the median rent in Manhattan hit $4,050 in June—$800 over what it was just a year ago. 

The report also reveals that the average rental price for a Manhattan apartment reached $5,000 for the first time in New York’s history. At that price, the average tenant would be paying close to $61,000 a year just on rent.

Rents are more affordable in the outer boroughs but are up, nonetheless. In Brooklyn, the median rent is currently $3,400, up $525 from July of last year when the median rent was just $2,875 a month. In Northwest Queens (encompassing the areas of Long Island City, Astoria, Sunnyside, and Jackson Heights), median rent sits at $3,146, but that’s still $300 more than what it was in July of 2021. 

While its true pandemic price breaks couldn’t last forever and bidding wars were bound to erupt among prospective tenants, New Yorkers are questioning whether real estate professionals should be given free rein to profit off of current market conditions. 

Disproportional broker’s fees are unusual even in a competitive rental market

Even in a red-hot rental market, such as the one NYC is currently experiencing, broker’s fees reach a maximum of 15% of one year’s rent. In Realtor Ari Wilford’s case, the fee amounted to 100% of one year’s rent. Marvin Michel, a real estate agent with Douglas Elliman, told the Post, “I’ve never seen that, and it’s not something I’d do. All my fees have been 15 percent.”

There’s currently no law capping broker’s fees under the New York Department of State, which is responsible for licensing agents and brokers in New York. However, spokeswoman Mercedes Padilla clarified that a broker’s fee is supposed to “represent charges for actual services.” It’s not meant to be an arbitrary number decided upon by agents or brokers.  

The exorbitant commission caught the department’s attention, prompting an investigation into the deal. It turns out this was not Wilford’s first attempt at collecting a disproportionate fee on a rent-stabilized apartment.

City Wide Apartments defended the fee, but removed Ari Wilford’s profile from their website

According to the New York Post, a previous client of Wilford’s claimed he had initially asked for a fee four times as much as the monthly rent. The apartment was priced at less than $2,000 a month, but Wilford managed to secure a commission of $7,000. “Ari, to be clear, wasn’t even in New York,” said the client, “Because of COVID, he relocated.” Apparently, Wilford had only handled the paperwork.

Another prospective tenant was allegedly asked to pay a $10,000 commission on a $2,400 per month unit in Gramercy Park, but the renter declined. All three apartments were rent-regulated/rent-stabilized. 

Owner of City Wide Apartments, Michael Jacobs, defended Wilford’s fees, telling the outlet, “Brokers provide great value to their clients and have been working harder than ever at a time where demand is surging, supply is low, and finding a home in New York City has become more challenging than ever.”

As of September 21st, Wilford does not appear on the company’s webpage. He has yet to comment on the situation. 

The City’s complicated history with broker’s fees

The fact that brokers are even involved in rental agreements may come as a surprise to tenants and landlords from out of state. In New York, it’s common practice for brokers to negotiate rental transactions given their control over listings, showings, and leases. 

Unlike most cities in the country, New York landlords often prefer to work with brokers instead of directly with tenants. Hiring a broker allows landlords to enjoy greater exposure, fast occupancy, and outsource tenant communications. Tenants almost always have to go through a broker to rent an apartment—even when they found the apartment on their own. 

Broker’s fees are usually paid in one lump sum payment by the tenant before they can move in. That’s on top of the typical security deposit, first month’s rent, and any other expenses renters incur due to the move. New York City is one of the only cities in the country where broker’s have such financial leverage over how tenants rent apartments.

In February of 2020, New York State regulators temporarily banned broker’s fees for renters, capping them at $20

A little over two years ago in an unanticipated move by state regulators, broker’s fees were essentially banned across New York. The measure only lasted about a week, but it put at risk the livelihood of about 25,000 real estate brokers who were actively licensed in the City at the time. 

The new law was intended to supplement the renter-protection laws passed in the summer of 2019, which capped security deposits at one month’s rent. Initially, the addendum on broker’s fees stated tenants couldn’t be charged more than $20 in fees when applying for an apartment which included broker fees, credit checks, and background checks. 

The law was then revised to clarify that brokers could still collect a fee, but it had to be paid by the landlord unless the tenant in question had hired the broker to help find the apartment. 

The intent behind these new laws was to protect tenants, strengthen rent regulations, and ultimately lower the lump sum payment renters had to pay before securing housing. But the progressive gesture caught brokers, landlords, and even some lawmakers off guard. 

The Real Estate Board of New York and the Influential Trade Group came together to challenge the ban. Brokers warned that the new regulations would motivate landlords to spread the broker’s fee across their tenants’ monthly rents, making leasing arrangements more expensive. 

Although that may have been true for the 900,000 unregulated, market-rate apartments at the time, that wouldn’t be the case for rent-regulated apartments in the city. About 2.4 million people currently live in rent-stabilized apartments in New York. 

A week later, a New York judge blocked the ban, allowing brokers to once again charge commission fees on rentals 

The ban on broker’s fees was short-lived, with Justice Michael Mackey of the New York Supreme Court in Albany County blocking the order just a week after it was introduced. The Real Estate Board of New York and New York State Association of Realtors, as well as other real estate groups had sued the Department of State over the ruling. 

The lawsuit claimed that the Department of State was imposing a new rule on the broker’s industry without giving brokers a fair chance to respond. The organizations involved in the suit pointed out that the ban hadn’t come up in 2019 when the state Legislature debated which rent laws were going to be adopted. 

In the short time the ban on broker’s fees stood, tenants conjured up quite a storm. At the time of the contentious ruling, Douglas Elliman had reported that tenants all across the City were refusing to pay commissions and threatening not to close, putting hundreds of active rental transactions at risk. 

In May of 2021, New York State affirmed that broker’s fees were legal

The controversy sparked a formal debate on whether broker’s fees were even legal. Despite broker’s fees being common practice in the NYC rental market, many tenants found it hard to justify paying thousands of dollars upfront just to rent an apartment. 

An apartment priced at $2,500 could require a tenant to pay anywhere between $6,700 and $9,500 upfront. Of the three expenses, the broker’s fees would be the most expensive, sitting between $3,000 and $4,500. Eliminating broker’s fees would drastically reduce the financial burden associated with renting in NY. 

But, last year New York State definitively ruled that broker’s fees were in fact legal and could continue to form a part of the rental market as usual. 

Why are broker’s fees allowed for NYC rentals?

Before information became readily available to us through the internet and smartphones, brokers had a much more active role in real estate. Only through an agent would you be able to find available units, schedule a showing, and coordinate a lease agreement.

In their earlier days, agents had to invest a considerable amount of time and effort to help renters, buyers, and sellers participate in the real estate market. Real estate professionals were responsible for listing apartments in a variety of publications, answering phone calls, and processing all necessary paperwork. 

But, given the ease with which prospective tenants can navigate online listings and even schedule virtual showings, the role of agents and brokers in the rental process has had to evolve. The extent of their involvement in securing rental agreements for tenants varies from one transaction to another. 

Renters who find an apartment on their own often have to pay the same percentage of broker’s fee as a renter who sought out a broker’s assistance from the beginning. Several renter advocacy groups have voiced their concerns over the practice, claiming that exorbitant broker’s fees are a significant barrier to entry for living in NYC. 

Real estate groups, such as the ones mentioned in the lawsuit against the state Legislature, maintain that brokers offer a significant amount of resources to renters and that without rental commissions, many brokers and agents would be left without an income. 

Can a renter get away with not paying a broker fee?

Although broker’s fees are here to stay, there’s still some hope for renters who are unable or unwilling to pay a broker’s fee on their rentals. You’ll notice that many market-based rentals are listed as ‘fee’ or ‘no-fee’ apartments on rental platforms such as RentHop and StreetEasy. Both kinds of apartments require a broker’s fee to be paid; the difference is who pays for it. 

Fee apartments are units where the renter is expected to pay the broker’s fee. No-fee apartments are units where the landlord is responsible for the broker’s fee. Many times the property owner will absorb the costs, but they could also pass on the cost to the renter in the form of higher monthly rents. 

The logic behind a 20k broker’s fee—is it worth it?

Assuming the parties involved agreed upon a broker’s fee worth 15% of the annual rent, the Upper West Side pad leased by broker Ari Wilford warrants a maximum broker’s fee of $3,150. But, in this particular deal, the broker walked away with almost $21,000, an entire year’s worth of rent. 

Wilford had told the landlord the numbers would even out in the end. To justify the fee, the new tenant would have to stay in the apartment just shy of six years, totalling a rental income of $124,200 for the landlord. Taking these numbers into account, the broker would have technically earned his fair share. 

The problem is most tenants stay an average of just three years in a single-family rental, not six. Given that the apartment is rent-stabilized, it’s likely the tenant would stay more than three. But considering the economic situation of someone leasing a rent-stabilized apartment at just $1,725 a month, those $21,000 are not easy to come by. 

Although the average down payment on a home in NY state is $34,998, in other places of the country, a down payment can be as low as $10,000. Why would a renter pay double that in broker’s fee just to rent and not to own? 

The argument is that despite the mass exodus that NYC experienced during the pandemic, NYC is still a highly desirable place to live and that broker’s fees are just another part of the market reflecting it. Don’t hate the player. Hate the game, it seems. 

The post Is There a Case for a $20k Broker’s Fee on a 1 Bedroom, Rent Stabilized Apartment in NYC? appeared first on CitySignal.