Investing in rental property in New York can become a very rewarding experience considering how many people want to move there for professional careers. You likely won't have trouble finding tenants in any rental properties you own, whether in New York City or upstate New York.
Your challenge is finding a rent that's appropriate for the people you rent to. With the media always reporting on how high rent is in places like New York City, you might find it surprising that some rents have gone down a little.
Even so, it's true rents are overall higher in New York. Here's a look at rent trends and what you should realistically set.
How Far Have Rents Lowered in New York?
According to Curbed NY, rent decreased slightly in Manhattan and Brooklyn this year, though only slightly. These declines continue being across all sized apartments and not just smaller ones.
Even so, rents in this region continue being higher than most other states. Yet, it's still worth watching that Curbed NY reports the median for Manhattan studios decreased 2.6% over the last several years.
Since this happened in Manhattan and Brooklyn, it's no wonder there's such a high demand for apartments in these regions of New York.
So what level of rent should you set in New York to make it fair to those moving to the area?
What's the Average Rent Price in New York City?
Rent Jungle notes the average price of a New York City apartment as of June of this year is $3,109. This might still sound extremely high, yet it's only the median rate. A one-bedroom NYC apartment is $2,745 per month this summer, so if you're renting to singles, you can set a more reasonable rate of rent.
Nevertheless, two-bedroom apartments go beyond the median to $3,461 per month.
A lot of this depends on the NYC neighborhood where you manage your rentals. Look at some neighborhood rent trends and you'll see some wide differences in rates.
The Cheapest Neighborhoods, and the Most Expensive
If you rent apartments around the Middle Village, Port Richmond, or Williams Bridge, these typically have the cheapest rents. The Middle Village alone has a lot of low-income housing that are worth investing in since they're always in demand. Many of these are still very attractive and allowing you to rent to people based on their incomes.
Rent is as low as $758 in the Middle Village, according to Rent Jungle above.
As you likely know, the most expensive rents in all of New York include Central Park, Tribeca, and Carnegie Hill. Renting luxury apartments in Central Park now go as high as $6,719 per month. As Zillow shows, some top-end apartments around Central Park West go for almost double the median rent or more.