When is it OK to rent a luxury apartment for less than $2,200 per month?
When you think of luxury apartments, you probably think of the iconic, $1,000-plus homes and mansions on New York’s Upper East Side, the ultra-luxury, super-condo apartments at the center of New York City’s housing boom, or the $3,600-plus apartments that populate the Sunset Strip.
But, as with the rest of the luxury housing market, there’s a lot of variation between apartment sizes.
Some have three bedrooms and five bathrooms, while others are smaller, two-bedroom apartments.
Some rent for as little as $2.25 per square foot, while other apartments are as high as $5,000.
So, is it ok to rent an apartment that’s half the price of a condo?
According to the Rentals Agency of America, yes.
Rental agencies estimate that approximately 85 percent of the rental units in New York are rented for less, or no money down, than the market value of the property.
In New York, rents range from $1.5 to $2 per square feet for single-family homes, $2 to $3 per square, $4 to $5 per square for multifamily units, and up to $6 per square in the Upper East Village.
Renters are charged 30 percent of their monthly rent and 30 percent for any extra payments.
A typical apartment in the upper Manhattan neighborhood of Tribeca.
(Photo by Eric Risberg/AP)The average price of an apartment in New Jersey is $1 per squarefoot, but some smaller apartment owners charge as much as $1 a square foot.
New York City and Connecticut also have high rental vacancy rates.
In New York State, rents are $1 to $1½ per square meter, while in Connecticut it’s $1¾ to $0.8 per square inch.
The average rent for a New York apartment is $2½ to $4 per square unit, but it’s a little more expensive in Connecticut.
(Source: Rentals agency of America)As a result, it’s generally a good idea to rent apartments that are closer to market value.
The Rentals Service Bureau estimates that approximately 80 percent of apartments in New Orleans rent for less or no down payment, while about 70 percent of rental units are in the same neighborhood.
Rentals can be more expensive on the East Coast.
In Brooklyn, an average rent is $3.50 per square-foot, while the average rent in Manhattan is $5.50 to $7 per square.
If you’re in the market for a luxury condo, you’ll need to do your homework.
Many of the city’s luxury properties are located in neighborhoods where the median income is less than 30 percent.
(Sources: Renters agency of American, Bloomberg, Real Estate Board of New Jersey)For example, in Greenwich Village, an apartment can cost $1 more per square footage than a comparable Manhattan apartment, and you can expect to pay $7 more per month than a similar apartment in Manhattan, if you live in the lower income bracket.
But the same apartment can also be found in Greenwich Park, a lower income neighborhood in Greenwich, which has a median income of $26,000 per year.
The difference in price and down payment may not seem that big, but there’s more to the picture than that.
While the average monthly rent for an apartment at a luxury condominium or townhouse is typically $3 to $9 per squaremeter, many other luxury apartment complexes are closer in price to the market.
For example a $2-million, five-bedroom, four-bathroom townhouse in Manhattan can be as cheap as $3 million, depending on the price per square mile, according to the Realtor.com website.
There are also some condo units that are considered to be “luxury” when compared to their neighborhood counterparts.
For example, a $1-million townhouse can be half the size of a luxury high-rise apartment, but the rent is higher.
A $2 million townhouse on East 52nd Street in Manhattan.
(credit: Getty Images)While the vast majority of luxury properties in New England rent for lower than $3 a square meter and many are closer than $1 an square foot to market, the rents for luxury apartment units in other parts of the United States can be quite different.
In Boston, for example, the average price for a $5-million apartment is between $6,000 and $8,000, according the Real Estate Council of Boston.
In New Jersey, rents can range from as low as $4.25 to $8 per sq. foot, depending upon the area.
In some cases, the price may even be more affordable, like a $3-million condo in New Brunswick, which is $8 to $10 per sq., depending upon which