Sympathy For The Devil: New York Real Estate Is a Nightmare for the Landlords, Too
Time to dust of the ‘ol bumper sticker about how we should “Be kind, for everyone you meet is fighting a hard battle,” or something. Via Curbed, RealtyTrac has crunched the numbers, and Manhattan, Brooklyn, and Queens are all some of the very worst counties in the country to be a landlord. Manhattan is actually the worst.
But what does “worst” actually mean here? For these purposes, it’s purely about return on investment, or annual gross yield. According to RealtyTrac’s numbers, the median sales price in Manhattan is $887,000 and the “average fair-market rent” for a 3-bedroom is $1,852, making the annual gross yield percentage just three percent. In Brooklyn, it comes out to four percent, and in Queens, five. Compare that to some of the counties at the other end of that list, where places like Wayne County, Michigan have a yield of up to 30 percent, and a median sales price of just $44,900.
Does this mean we have to shed a tear for mega-developers? No, never. But if you’re looking to start an affordable utopia out in Wayne County, there are probably a few mom and pop landlords who’d happily join the cause.
Follow Virginia K. Smith on Twitter @vksmith.
