NYC Housing in 2021
Hey all,
Moving to NYC in May before starting in IB in June. I've seen other threads on this topic but most are stale. I'd love to hear any and all thoughts on the following.
Commute: what's the farthest you would consider commuting to work, regardless of the mode of transport?
Budget: what's the most you would spend on net effective rent? Thinking of scooping a 1 bed/1 bath while prices are depressed, while still keeping rent at less than or equal to 35% of income.
Neighborhood: If I'm walking at least 20 minutes anyway to work (i.e. Murray Hill), why not go 10 more to train in from Dumbo? I'm sure I'll get heat for this lma0.
Any other non-obvious advice (fuck RE brokers, check XYZ on the contract, etc.)?
For context, analysts in my industry coverage group average ~90 with BB comp. The group currently mandates WFH every other week.
I'm not sure what this means? Are you in IB or? Cause if you're in IB expect closer to 130-140k all-in comp.
Assuming your office will be in midtown, Murray Hill generally is the place to go. It's got a good nightlife scene with a lot of younger bankers as well if this is important to you. If not, there are plenty of other great areas with a bit cheaper prices (Gramercy / East Village) which still have good nightlife honestly
Dumbo is actually a pretty pricey area and while yes there is the F train that'll take you uptown it'll add closer to 15-20 minutes in my opinion (F train ALWAYS has train delays). Plus getting home at night will take longer even if you get free Ubers. Going to "your place" will simply be more tedious and this is why I personally think most analysts shoot more for the murray hill area due to proximity.
If you're close with any of the other analysts in your cohort, I'd recommend hitting them up and going for a roommate if you can. Just by eyeballing a few listings on Streeteasy, you could go from around $2k - $2.5 k / month in a one bedroom in Murray hill vs. $3k-3.5k for a 2 bedroom 1-2 bath (effectively $1500-1750 / month). Saving the extra $250-750 / month nets to around $6k (assuming the average $500/month) annually. Now again this is due to preference. Living alone for the first time can be pretty tough and it helps to have a buddy who you room with and experience a lot of newfound freedom with, but if you're the type of person who doesnt mind living alone it's fair to do it!
Pro tip: I know a ton of analysts who chose to go to Long Island City (which is basically like 1-2 train stops into midtown) and significantly cheaper than murray hill or dumbo. I dont know the area too well but heard they have some nice places, I'd recommend doing some research about it.
Good luck bud, happy to help you navigate the NYC area better (born and raised in the city), lmk if you got other questions or concerns
Thanks for the comprehensive response, this is very helpful. By "BB Comp" I meant exactly what you thought: $130-140k all-in for my first year in IB.
I understand the economics of having 1-3 roomates. However, after living in the dorm, frat house, etc. in college I've recognized that I live significantly more clean than others. Honestly, paying an extra $6k/year for solace and peace of mind would be worth it to me -- especially when stress is already high in the workplace.
I'm going to ping you for more pointed questions. Thanks!
Currently finishing up my senior year of college in NYC, agree with what Hymn posted, DM me as I know a lot of people who went through the apartment process / live around different parts of Manhattan and BK
how far in advance to look/visit/choose place if dont live near the city? best tips for that process?
Fly to NYC 2-4 weeks before you want to move in and set up all of the showings possible for 3-4 days. Start looking prior to that to get a feel for what price range you should be looking in, but no one will lease you something in March for a June move in.
Be ready to lease on the spot if you see a place you like. Pre-covid (and even now) nice places with a good deal in place will rent same day. This means having all of your ducks in a row before you fly up. You'll need offer letter to confirm salary, your deposit (plan first month's rent + deposit + brokers fee if needed), your/roommate's information to get application done same day. Recommend looking for no fee apartments so you don't lose 15% of your rent to a broker.
thanks, just recommend nakedapartments or aparments.com? Or better place to look before traveling?
Some of the leasing offices I've spoken with say "reach back out in March" for a May move-in. Wanting to settle in a month before training starts in June.
Therefore I was planning on coming to NYC late March to browse/sign a lease. Do you think that is too early?
Bump:
What's the max distance you would live from work as a 1st year analyst?
Any buildings you particularly liked that are within walking distance to Midtown?
Thoughts on biking to work? How much heat would I get if other bankers saw me biking?
You would get absolutely no heat for biking to work. Maybe some friendly banter from your fellow analysts. But when you're working 80 hours weeks, there's no time to think about who gets to where and how.
Do what is best for you. That is a good alternative to save money and get some exercise in. Only con would be heat during summer. In terms of distance, being close is overrated. Being closer to the office by 10 mins but costing you $1000 extra in rent is not worth it, IMO. Its up to you. You'll have the company pay for your uber on most days, so a 30-40 min by train ride is maybe 15-20 by car in those late hours.
Again, do what is best for yourself financially and otherwise. You'll thank yourself for it in the future. Good luck.
There are plenty of nicer apartment buildings in Midtown East, I used to live in the area. One of the pros in that neighborhood is that most of the rowdiness is down town, so its a tad cleaner/safe/less noisey than other parts of the city. Also, having the 4/5/6 is convenient for going downtown as well.
Can't comment on distance, as i wasn't in banking at the time. Depends if you're talking train commute, car, or walking. There definitely are perks to being within 20 mins walking distance to the office. But some people try and move away from that as they dont want to live near where they work.
Gotcha. Yeah, I'm between separating a neighborhood vs. being in Midtown for convenience. Leaning towards the latter.
You mentioned that there are some nice apartments in Midtown East. Any buildings you like in particular?
I also think Midtown East is clutch because a) close to work and b) off the green line which takes you to the Lower East Side or Central Park
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