Good yields on studios in New York

Last Updated: Jun 15, 2017
NEW YORK MANHATTAN - condos and co-ops COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
Studio 514,114 2,689 6.28% 10,151 59.31
1 br 933,811 3,436 4.15% 13,498 54.79
2 br 2,037,340 4,942 2.91% 17,191 56.30
3 br 4,192,730 8,497 2.43% 22,239 64.59
4+ br 9,866,070 n.a. n.a. 32,260 n.a.
Upper East Side co-ops and condos
Studio 458,035 n.a. n.a. 9,569 n.a.
1-BR 900,657 n.a. n.a. 12,670 n.a.
2-BR 1,913,897 n.a. n.a. 16,975 n.a.
3-BR 3,519,365 n.a. n.a. 19,150 n.a.
4+BR 7,024,033 n.a. n.a. 24,672 n.a.
Upper West Side co-ops and condos
Studio 500,306 n.a. n.a. 10,097 n.a.
1-BR 841,561 n.a. n.a. 11,787 n.a,
2-BR 1,837,605 n.a. n.a. 16,792 n.a.
3-BR 3,347,850 n.a. n.a. 20,000 n.a.
4+BR 7,455,682 n.a. n.a. 27,815 n.a.
Soho and Tribeca co-ops and condos
Studio 475,000 n.a. n.a. 9,171 n.a.
1-BR 1,475,199 n.a. n.a. 15,867 n.a.
2-BR 2,977,086 n.a. n.a. 18,741 n.a.
3-BR 6,513,413 n.a. n.a. 26,943 n.a.
4+BR 11,551,514 n.a. n.a. 34,166 n.a.
The Hamptons
Condos 969,453 n.a. n.a. n.a. n.a.
1-3 BR Family homes 1,766,557 n.a. n.a. n.a. n.a.
Luxury homes 6,691,021 n.a. n.a. n.a. n.a.
FLORIDA
Miami Beach luxury condos sq. m. 4,164,699 n.a. n.a. 14,295 n.a.
Palm Beach luxury homes sq. m. 12,675,000 n.a. n.a. 23,563 n.a.
Source: Miller Samuel Aggregate Data for Q1 2017 Definitions: Data FAQ See also: Update Schedule

Manhattan property has held up well through the crisis and beyond.

How much will you earn? Studio apartments will earn relatively more than one-bedroom apartments (in terms of return-on-investment), and those in turn will earn relatively more than two-bedroom houses, etcetera. To earn higher returns, buy smaller units.

  • a studio apartment can rent for around $2,700 per month, earning a rental yield of around 7%
  • a 1-bedroom apartment can rent for around $3,500 per month, earning a rental yield of around 4.4%
  • Larger units earn proportionately lower returns. A 3-bedroom apartment is likely to earn a rental yield of around 2.4%

Round-trip transaction costs are moderate for buyers of U.S. residential property. See our U.S. residential property transaction costs analysis.