Buying an apartment in Manhattan hasn’t looked this good since 2006! Bloomberg News reported that in the first quarter of 2012, the average cost of purchasing an apartment was 20.8 times more expensive than the annual cost of renting, which is the smallest spread since the end of 2006. In 2006, the average cost of purchasing an apartment was 20.4 times the cost of renting. In the second quarter of 2008, the multiple was 26.7.
According to data from Miller Samuel, the median price of a Manhattan condo or co-op was $775,000, down 0.9% from last year. Simultaneously, the median monthly rent jumped 7.1% to $3,100.
This is a huge change from back in 2010 when Bloomberg featured an article about wealthy people renting luxury homes instead of buying them. People were on the fence about buying and they had more selection in the rental market. Rental prices were a bit down at the time and prices were still high. Oh, how times have changed.
SOURCE (The Real Deal)