How to buy a high-end luxury apartment
The cost of owning a luxury apartment in a major city is soaring.
In New York City, a typical $1.2 million apartment rents for $1,400 per month, a figure that’s nearly 30% higher than the national median.
But it’s not all bad news for apartment dwellers in the city.
A $1 million apartment in New York State is cheaper than a similar one in Boston, the most expensive city in the United States.
A typical $2.5 million apartment, by comparison, is about half as expensive.
“It’s not just in New England, but around the world it’s skyrocketing,” said Richard Schlosser, senior director of real estate for real estate research firm RealtyTrac.
A big factor is the cost of living.
A single-family home in the Bay Area costs about $1-million, while a two-family condo in New Jersey can cost up to $2-million.
That means that a luxury condo can easily fetch a third of a million dollars.
In Manhattan, that figure is even higher: a $1 billion luxury condo in the borough of Manhattan can cost about $3.5-million a month.
In Los Angeles, the cost for a $2 million, one-bedroom apartment in the City of Angels is $2,000, according to real estate website Zillow.
And the cost can get even more extreme if you’re buying in a large city.
The average one-bed, two-bedroom in Los Angeles is about $4-million and is almost twice as expensive as a comparable one- bedroom in New Orleans, the second most expensive American city, according the Realty Trac report.
And there are even higher rents in New Zealand.
A three-bedroom, two bathroom home in Auckland is $6.4-m in New Zealander dollars, compared with $3-million in New Yorkers.
“You’ll find a lot of the luxury condos in Auckland and New Zealand are very, very expensive,” said Schlossers.
Luxury apartments in the U.S. are still relatively cheap compared to other major cities.
But they’re not as affordable as they used to be.
In 2015, the median price for a two bedroom in the Boston metro area was $1.,500, compared to $4.25-million for a three bedroom in Chicago.
That’s an 8% increase.
The most expensive one- and two-bed apartment in Boston is now $3,300 a month, up from $1 per month in 2015.
The price for the most affordable one- or two- bedroom apartment in Chicago is now more than $1 a month — up from the $1 that it was in 2015, according Zillower.
The city of Chicago has been seeing a dramatic drop in rents for decades.
In 1970, the average rent in Chicago was $500.
By 2015, that was $175 a month and the average cost of a one-bath apartment is $1 to $1 1/2 times more expensive, according a study by RealtyTricom, an online real estate market.