In this article, we will be navigating through the real estate market in New York City, while covering the 15 affordable places to live near NYC. If you wish to skip our detailed analysis, you can move directly to the 5 Affordable Places to Live Near NYC.
The Housing Scenario in NYC
New York City is a bustling metropolitan city where living comes at a cost. The opportunities related to education, employment and business make the city a prime destination that attracts many. While the opportunities are never-ending, NYC is an expensive place to live. Apart from the regular cost of living, the primary expense pertains to the housing cost in the city, which is high. Living in the city center is even more expensive. However, NYC is surrounded by multiple neighborhoods, towns, and even cities that offer affordable housing and a strategic location close to the city.
NYC Real Estate Market at a Glance
The housing market in NYC is exposed to prevailing conditions of a tight housing supply, booming mortgage rates and rising home prices. On September 12, Forbesreported that the demand for houses in NYC tends to be strong. Manhattan, a popular borough of NYC, has a strong luxury home market. Rochester, Syracuse and Buffalo also attract many buyers who want to settle in. In the majority of the counties of NYC, a decline in new property listings and closed sales was noticed in the second quarter of 2023. Home prices also increased in half of the city during this period. The metro areas of the city have the highest growing house prices. Even during times of high house prices, homeowners are postponing the decision to sell their homes since they are waiting for the mortgage rates to drop as they will have to finance their new home at a rate higher than the rate they already hold. This further reduces the supply of houses in NYC. Over the years, home prices have grown in the city from a median price of $280,000 in 2005 to $405,000 in 2023.
On August 10, CNBCreported that the average monthly rent in Manhattan rose to $5,588 and hit a record in the month of July. The high rents are a result of a housing shortage and higher interest rates. This trend has also compelled many people to give up on buying a house since renting seems a comparatively reasonable option. The increase in rents is spread across the region, affecting small studio apartments as well as larger apartments. You can also take a look at some of the most affordable cities in the United States.
Realtor Stocks Dominating NYC
The NYC real estate market has a lot of residential and commercial properties to offer through many realtors based in the city. Some of these include SL Green Realty Corp.(NYSE:SLG), Vornado Realty Trust (NYSE:VNO) and American Strategic Investment Co. (NYSE:NYC).
SL Green Realty Corp.(NYSE:SLG) is a renowned real estate investment fund which is involved in acquiring and managing commercial buildings in the New York metropolitan area. On October 2, the companyreported one of its recent developments in the NYC real estate market. SL Green Realty Corp. (NYSE:SLG) announced residences available for sale at 760 Madison Avenue, Manhattan’s Upper East Side. The company partnered with Giorgio Armani to launch these exclusive Giorgio Armani Residences. 5 out of 10 of these residential apartments are available for purchase while the rest are expected to be completed in 2024. As a part of this project, four-to-five-bedroom residences are available for a price starting from $21.5 million.
Vornado Realty Trust (NYSE:VNO) is another New York focused real estate investment fund. The company owns a portfolio of many office buildings and street retail properties in New York City. On August 29, Vornado Realty Trust (NYSE:VNO)reported becoming a part of Manhattan’s first public-private partnership under which it will own a 49.9% share in a film and television production studio campus at Pier 94, Manhattan. Local job creation and content production will be facilitated through this joint venture. Construction of the studio will begin in the third quarter of 2023. The project is expected to be delivered in 2025 while contributing $6.4 billion to the local economy over the next 30 years.
American Strategic Investment Co. (NYSE:NYC) also provides investors with an opportunity to invest in a wide variety of real estate properties in NYC including high-end office buildings, retail properties, and condominium properties. On October 12, the companyreported it sold its NYC-based Hit Factory for $4.5 million. The CEO, Michael Anderson, referred to the completion of the sale of the specialty asset as proof of a resilient real estate market in NYC which attracts a potential set of buyers to well-positioned properties.
Other than the main New York City, housing options are also available in commuter towns near the city. Without further ado, let's take a look at the most affordable place to live near NYC.
15 Affordable Places to Live Near NYC
15 Affordable Places to Live Near NYC
Our Methodology:
In order to compile a list of the 15 affordable places to live near New York City, we sourced data from theNiche screener. We chose the NYC area so we could consider all places in the vicinity of New York City. For extended coverage, we included all cities, towns, suburbs and city neighborhoods located close to NYC. Moving on, we screened for the most affordable places to live near NYC by applying the cost of living filter. Hence, we acquired a list of all places close to NYC with a lower cost of living. We selected median rent as our metric. Using this metric, we included all the places near NYC with the lowest cost of living. The rationale behind our metric is backed by our discussion above related to the housing scenario in NYC, which has been witnessing a trend of people wishing to rent rather than purchase.
Finally, we ranked the 15 affordable places to live near NYC in descending order of their median rents.
15 Affordable Places to Live Near NYC
15. Tarrytown
Median Rent: $1,823
Tarrytown ranks as an affordable place to live near NYC. Residents can seek access to housing units for cheap prices. The town also connects Westchester and Rockland Counties with New York City thereby making it a suitable living destination near NYC.
14. Martinsville
Median Rent: $1,748
Martinsville is situated in central New Jersey which makes it an ideal place to live near NYC. The local transport makes commuting to NYC even easier. The median rent is low in Martinsville which makes it an affordable place to reside near NYC.
13. Larchmont
Median Rent: $1,748
Larchmont is a suitable place to live near NYC since the median rent is low. It is located at a short distance from Midtown Manhattan. Larchmont also offers a mixture of an urban and suburban life which attracts those who wish to afford living close to New York City.
12. New Rochelle
Median Rent: $1,660
New Rochelle, a city in Westchester County, is home to many high-rise apartments as well as historic homes. Thus, diverse housing options are available at cheaper rates in the city thereby making it an affordable place to live near NYC. Commuting to NYC is also convenient from New Rochelle.
11. Shrewsbury Township
Median Rent: $1,631
Located in New Jersey, Shrewsbury Township ranks as another affordable place to live near NYC since it offers a low cost of living. It is an attractive location for Americans who wish to live close to NYC while experiencing a rural feel.
Investors who wish to seek exposure to the NYC real estate market can look up SL Green Realty Corp. (NYSE:SLG), Vornado Realty Trust (NYSE:VNO) and American Strategic Investment Co. (NYSE:NYC).
10. Yonkers
Median Rent: $1,550
Yonkers is a city positioned across the Hudson River. A variety of houses including traditional houses and those with a waterfront, are available in the city. The commute time from the city to NYC is less while the house rents are low. These conditions make Yonkers another affordable place to live near NYC.
9. Rossmoor
Median Rent: $1,432
Rossmoor is situated in New Jersey and offers affordable housing to its residents. The median rent is low as compared to other places in New Jersey. Hence, Rossmoor qualifies as one of the 15 affordable places to live near NYC.
8. Leisure Village West
Median Rent: $1,118
Leisure Village West is a suburb of New Jersey and ranks as an affordable place to live near NYC. It is also a suitable place for retiring as it offers a low median rent and a range of amenities. Single-family homes, mobile homes, and recreational houses are available in Leisure Village West.
7. Crestwood Village
Median Rent: $1,095
The median rent in Crestwood Village is as low as $1,095 which makes it an affordable place to live near NYC. Renting a housing unit in Crestwood Village costs less as compared to an average house in New Jersey.
SL Green Realty Corp. (NYSE:SLG), Vornado Realty Trust (NYSE:VNO) and American Strategic Investment Co. (NYSE:NYC) provide attractive investment opportunities in NYC-based real estate properties.
6. Cedar Glen West
Median Rent: $1,036
Cedar Glen West is located in New Jersey. This active lifestyle community is located at a short commute distance from New York City. Houses as well as apartments are available for cheap rates. Hence, Cedar Glen West is an affordable place to live close to NYC.