NYC Rent - Updated Perspectives
Tried searching on here for something similar but everything is from an IB analysts perspective.
I'm moving back to NYC in July and trying to figure out what to expect to pay for rent. My base will be $170K (Sr. Asso role), so roughly $9.3K per month on a post-tax basis. I figured I should expect to pay around $4K for rent for a 1 bdr in Chelsea/West Village/Tribeca, but I wasn't sure if that seemed high given my base and the general rule of thumb of 30% of post-tax income should go towards rent.
It's been a while since I lived in NYC, so any refreshed perspectives on what people at the Associate and up level are paying for rent would be helpful. Also, if you wouldn't mind mentioning if you're in a studio/1bdr with a doorman or not, that would also be useful to know.
Thanks
associate level investment professional 3,495/mo. 1br in midtown. doorman, roof, gym
Thanks. Mind giving a range of monthly income too, or % of monthly income spent on rent?
between 200k-250k annually
You also need to take into account healthcare deductions, 401k, etc.
I paid $3200 on a meh walkup studio in West Village when I was around that base. I don’t like doormen buildings due to bad experiences doing stupid shit in front of them when sleep deprived and completely faded during my analyst years (eg running into the glass door and then having my buddy run into it immediately afterward), but they can be convenient for packages and dry cleaning. $4k is a bit steep but that’s my opinion since I was barely in my apt prior to this quarantine business
lol you got any more examples?
Typical first year stuff: walking in from the office at 3am one night and walking in blackout at 3am the next, showing up in the lobby all sweaty and having lost my keys (and wallet and phone), having to apologize about this CRAZY ASS girl that my roommate had been dating, etc
One of my buddies lived down on Wall Street and I guess all of the buildings down there have similar looking entrances. He had a meltdown in another building’s lobby because they wouldn’t let him up when he was completely blackout lol they didn’t call the cops though because most of the doormen are pretty cool young guys but that’s probably the best story I have
Man, I want to party with this guy when the lockdown is over!
You can probably get an apartment for a little lower than that. Not too hard to negotiate concessions in high end rental units.
How much room do you generally have to negotiate apartment prices though? If a place is marketed at $4K a month, do you think I could shave 10-20% off that monthly rental price?
A month of free rent is a pretty typical concession. So 12.5%. You won't get that off your rent, but it's effectively the same thing to you
Out of curiosity, at $4K why not just buy an apartment instead of rent?
I've considered it. I want to rent for a year to make sure this new job is a good fit and I see myself there longer term. If it makes sense, I'll reassess buying in another year or so.
There are high costs to buying a place in nyc, and $4k a month won’t get you that much. I think the OP should get comfortable with the job and location before buying a place. Buying a place in nyc means:
1) monthly HOA fees - even without a doorman or luxury building these costs will be $500-1000 a month
2) property taxes - also pretty high, you are looking ~$1000 a month (depends on your property, etc)
3) condo vs coop - the “cheaper” units are coops, those can be relatively restrictive (no renting, etc) and may have high down payment requirements (more than 20%)
4) other fees - bank fees on mortgage will be ~$2k, attorney $2k, mansion tax if your property is over $1mm you will pay ~$10k tax at closing, title insurance $4k, mortgage recording tax if you buy a condo (~$15k), so overall around $35-40k closing costs
Then you get into the risk of you have to sell (6% broker fee, so you have to be careful.
So if you are buying a place for $1mm and have an $800k mortgage, your monthly will be:
$1000 tax $500 hoa $3,400 mortgage $100 or so insurance
So about $5k (and you get tax savings to offset some of this so close to what the op is saying). But the upfront costs are also high and that is a 1 bedroom that you’ll probably want to rent out (or sell) later if you want to have a family, etc so you need to make sure you find a place that is renter friendly.
I was looking into buying a condo at $1.25 and it’s just not worth it. You are correct in all you said but your #s are low for nyc — closing costs would’ve been closer to $70k and monthly costs(mortgage/prop tax/HOA/insurance) with 20% down would’ve been roughly $7k. You also need to consider the forgone down payment. So I would be signing away a quarter mil and $7k for the next 30 years to pay for a 1 bedroom condo that I would have probably outgrown by 2030. And it’s probably about as nice as a $4k monthly rental
So it’s actually not close to equal in price for about equivalent levels of living. Maybe I could turn a profit when selling but that’d involve another $100k (or I’m not even sure) in fees and broker costs. Don’t give me shit about locking in a rate and saving because of inflation because you’d paying for it by living in an outdated place that you’ve grown sick of
You can get a nice 1 bedroom in Hells Kitchen from 2.2-3k. Why not save the money, and live close to Central Park?!
Not crazy about Hells Kitchen. Trying to avoid midtown, I lived in Murray Hill when I was an analyst so I'm trying to steer clear of the more populated, busy areas like Hells Kitchen, etc. Trying to shoot for something more downtown.
Depending on where your office is, I would suggest a nice area of Brooklyn - you'll get more space / amenities / outdoor space in a 1BR in Brooklyn Heights, Dumbo, Cobble Hill than the village for $3.5k. Also it's highly unlikely you'll be reporting to the office until the fall, so having an apartment you can comfortably work 70+ hours a week in for 3-4 months should be a priority if I were you.
You won't get a large apartment in BK Heights for 3.5k. You may get an old unrenovated building . One beds in renovated walkups go from 3,800 to 4,200.
Everyone is negotiating right now. It's a renter's market. Find a place you want and offer a few hundred less given the current market. You can definitely find a steal, a few of my friends have done this successfully in the last month for June leases.
right now, you can get 2 months free rent on a 14 month lease in some buildings.
Damn 2 months? We were offered 1.5 on 13 months. Ended up not renewing though.
I have a 1br in one of the neighborhoods you mentioned (the one with nicer buildings and less hipsters) and they are beeegggggiingggg me to re-sign. It's almost pathetic. NYC is going to be not such a great place for next few yrs. I pay $4200 but the building has everything you could ask for.
I would highly recommend TriBeca/Financial District. I'm not sure what my apartment would cost if it was in Chelsea, hard to get that kinda sqft there without breaking the bank.
Associate level ($175k). Long island city $3.2k 1-bedroom apartment. In-person doorman, excludes gym and pool use
Thanks for bumping this thread. Would love to see more people post updated numbers, including their salary. I want to get a sense for what people are spending on rent relative to pay.
Et voluptas quo iure et ab est. Ipsam rem minima odit porro suscipit atque voluptatum. Laboriosam eaque sint aut voluptatum minima. Sapiente eaque cum et sit. Explicabo ut inventore rerum cum incidunt omnis possimus. Est beatae quis expedita voluptas aut perspiciatis ea. Iure sit sit magnam delectus vel.
Dolor sit vitae architecto enim. Voluptas natus voluptates voluptatem autem culpa sunt.
Neque quidem veniam delectus aut. Modi beatae ea dolore aut.
Illum sapiente sint non officiis. Odit libero corporis explicabo et. Quisquam est neque vero non quia. Sequi doloremque quia suscipit. Quidem ut temporibus velit. Facere modi molestias unde inventore aut sint deserunt dolor.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Qui omnis sed beatae veniam. Harum enim quia illum eum saepe.
Temporibus dolorem nostrum et ut reiciendis. Quas nihil error omnis quae enim. Explicabo aut et facilis dolore sed.
Qui reiciendis a ad odit assumenda ab velit quod. Sint quasi pariatur et suscipit culpa rerum adipisci. Cupiditate in dolorem voluptatem quam quaerat.