Whether you are buying an NYC apartment to live in or to rent out, it’s a major investment. And it’s important to ask, “Do NYC apartments appreciate in value?” because that’s a significant part of determining their investment value as a rental if you are buying them as a rental property.
NYC Apartment Value Appreciation Trends
Yes. NYC apartments do appreciate in value, but the rate of appreciation might differ greatly based on the following factors:
- Apartment type (co-op or condo)
- Apartment size (in some markets, 2-bedroom apartments might appreciate in value faster than studios)
- Location (Borough and neighborhood)
For example, in Brooklyn, the value of condos (based on median sale prices) grew by about 0.2%, but at the same time, the value of co-op apartments rose by 4.6%. The trend was the opposite in Manhattan – co-ops fell by 4%, and condos gained value by 0.3%.
The trends are more significant over longer time periods and if we zoom in on specific neighborhoods. Between 2013 and 2023, the average condo price per square foot grew by over 150% for Prospect Lefferts Gardens and Crown Heights neighborhoods. The price appreciation was even more substantial in the last decade (before the pandemic).
Factors Affecting Value Appreciation
You can’t influence market dynamics, but choosing the right time and market to buy in can have a significant impact on the value appreciation of your apartment. Your New York City broker can help you identify other core factors as well, like choosing the right neighborhood, location, apartment building, size, condition, etc.
