Published On: Tue, Feb 23rd, 2016

In Manhattan parents become landlords

Median rental price for a studio hit almost $2, 600 a month while a one-bedroom is $3, 375

NYC New York City Flatiron-District-by-Dave-Lindblom-via-Wikimedia-Commons

Forget instant ramen and multiple roommates in far-flung parts of the city, a few lucky Millennials have the ultimate New York City gift — a pad bought by mommy and daddy. As rents in Manhattan skyrocket, some parents are buying apartments and then “renting” them to their very deserving children.

The median rental price for a studio in Manhattan is almost $2, 600 a month and a one-bedroom $3, 375, according to appraisal firm Miller Samuel.

Julie Newdow, a broker at Corcoran Group Real Estate, told the New York Times that while it’s always been tough for recent college grads with entry-level jobs in the city, it’s even more so now.

 

Screen-Shot-2016-02-22-at-12.07.53-January rental market (credit Douglas Elliman and Miller Samuel) PM-Rental market in Manhatten

 

Newdow, and her husband, Mark Landisman, also a broker at Corcoran, purchased a one-bedroom with a terrace in a postwar co-op in Kips Bay last year. Landisman’s son Brian Landisman, 28, a graduate student at Pratt, pays the maintenance fee of $1, 021 a month for the apartment.

He was paying $2, 150 a month for a one-bedroom rental in an Upper East Side walk-up, which Newdow called “crummy.”

“We could be getting double or triple what our son is paying, ” Newdow said. “But we’re not out of pocket.”

Manhattan’s median rental prices have been steadily rising for the past two years, and jumped another 4.5 percent last October to $3, 391.

Jonathan Miller, president of Miller Samuel, told the Times, that “over the last three or four years, we’ve been seeing more pied-à-terre purchases that involve parents buying a small unit as a home for a child with a first job in the city, and also as an investment.” [NYT]Dusica Sue Malesev

This article was first published at The Real Deal

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