{"id":542,"date":"2023-02-01T23:49:38","date_gmt":"2023-02-02T04:49:38","guid":{"rendered":"https:\/\/www.urbandigs.com\/blog\/?p=542"},"modified":"2023-04-11T14:01:09","modified_gmt":"2023-04-11T19:01:09","slug":"floor-poor-how-manhattan-properties-height-affects-prices","status":"publish","type":"post","link":"https:\/\/www.urbandigs.com\/blog\/floor-poor-how-manhattan-properties-height-affects-prices\/","title":{"rendered":"Floor Poor? How Manhattan Properties\u2019 Height Affects Prices"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"542\" class=\"elementor elementor-542\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2399395 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2399395\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-aa404ef\" data-id=\"aa404ef\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-76f5b1f elementor-widget elementor-widget-text-editor\" data-id=\"76f5b1f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.6.1 - 23-03-2022 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">When it comes to apartment buildings, there are many ways to differentiate \u2014 \u201cdoorman\u201d versus \u201cnon-doorman\u201d buildings are one key distinction, for example. But perhaps the most basic or popular way to differentiate buildings is by contrasting those with elevators and those without.<\/span><\/p><p><span style=\"font-weight: 400;\">As such, what floor a property is on can have a significant effect on its price in Manhattan.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bc64380 elementor-widget__width-initial elementor-widget elementor-widget-html\" data-id=\"bc64380\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<iframe loading=\"lazy\" width=\"930\" height=\"371\" seamless frameborder=\"0\" scrolling=\"no\" src=\"https:\/\/docs.google.com\/spreadsheets\/d\/e\/2PACX-1vQJS4JywjbFpZHtEdQlDmuHVTdDmsod1nR1Aj4uaRK_5CfnLIvPOKqFVvLWnLIH1hT5uOtXvo8zfs4d\/pubchart?oid=1251466457&amp;format=interactive\"><\/iframe>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8475b2d elementor-widget elementor-widget-text-editor\" data-id=\"8475b2d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Looking back at sales since 2005, the long-term trend is clear: Higher floors lead to higher prices. But that\u2019s only part of the story.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Let\u2019s begin with the shape of the columns from left to right in the graph above. It is a nearly classic power-law distribution, with 80% of the sales occurring on 20% of the floors. Case in point, the average floor across all of these sales is 9.78. As much as Manhattan is a vertical market, the mass of sales in units below the 10th floor shows that for most residents, the views are of each other and not necessarily sunsets over New Jersey.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The reason for the bulky nature is that pretty much every apartment building in the city has floors one through five. Why stop at five? In 1929, the city\u2019s new Multiple Dwelling Law required elevators over five stories. So, before 1929, the sixth floor was the top (excluding the odd walk-up above the fifth floor \u2014\u00a0 yes, they still exist!). After 1929, the sixth floor was served by an elevator but was still quite nearly the top for essentially all but the fancier apartment houses.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Hence, we have two overlapping markets on the lower floors: the elevator versus non-elevator markets.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d336e17 elementor-widget__width-initial elementor-widget elementor-widget-html\" data-id=\"d336e17\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<iframe loading=\"lazy\" width=\"857\" height=\"371\" seamless frameborder=\"0\" scrolling=\"no\" src=\"https:\/\/docs.google.com\/spreadsheets\/d\/e\/2PACX-1vQJS4JywjbFpZHtEdQlDmuHVTdDmsod1nR1Aj4uaRK_5CfnLIvPOKqFVvLWnLIH1hT5uOtXvo8zfs4d\/pubchart?oid=195763691&amp;format=interactive\"><\/iframe>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ea577bb elementor-widget elementor-widget-text-editor\" data-id=\"ea577bb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">As mentioned earlier, sales on or below the fifth floor encapsulate the walk-up market. Contrary to elevator buildings, walk-ups typically demand premiums for less stair time.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Under that logic, though, shouldn\u2019t first floors show up the most? Not only are there typically fewer first-floor units (the first floor usually gives up square footage for pedestrian items, such as mailboxes and entry vestibules), but fewer people want first-floor units, so developers don\u2019t prioritize them. Still, note that the chart above, focusing on walk-ups, suggests the bargains are on the fourth and fifth floors.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Currently, the premium for a second or third-floor unit compared to a fifth-floor one is around 12% to 14%. If a flight is 15 stairs, that means you\u2019ll end up saving over $100 per stair climbed over a ten-year holding period!<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4745f13 elementor-widget__width-initial elementor-widget elementor-widget-html\" data-id=\"4745f13\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<iframe loading=\"lazy\" width=\"821\" height=\"371\" seamless frameborder=\"0\" scrolling=\"no\" src=\"https:\/\/docs.google.com\/spreadsheets\/d\/e\/2PACX-1vQJS4JywjbFpZHtEdQlDmuHVTdDmsod1nR1Aj4uaRK_5CfnLIvPOKqFVvLWnLIH1hT5uOtXvo8zfs4d\/pubchart?oid=1923376195&amp;format=interactive\"><\/iframe>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-31a12e5 elementor-widget elementor-widget-text-editor\" data-id=\"31a12e5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">As convenience rises, so does price.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Note the general increase in median price for floors 1-5 in elevator buildings. The uptrend as floors increase is clear.<\/span><\/p><p><span style=\"font-weight: 400;\">(Quick side note &#8211; on the first chart, notice how the number of sales drops abruptly on the 13th floor? Many residential buildings in the city simply don\u2019t have them because the number 13 is considered an unlucky number for many people. In those buildings, the floors jump from 12 to 14.)<\/span><\/p><p><span style=\"font-weight: 400;\">Continuing the climb into high-rise territory (over 20 floors), the number of units starts to thin noticeably after the 30th floor. Much of this has to do with the simple math of building costs as floors rise. Certainly, in recent years, \u201csupertall\u201d developments have made news, but in truth, they are few and far between, representing less than 1% of all apartment buildings. But with scarcity comes perceived value. As the number of units perched on ultra-high floors falls, their price rises, sometimes dramatically.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Hence, there are a couple of \u201ckinks\u201d in the curve where the slope of the trend increases. The first, around floor 20, is slight but hints at the fact that there are now fewer units in the overall market. The second kink in the price curve is around the 40th floor. This is a noticeable uptrend and suggests that scarcity is a more determining factor in price than simply space. For instance, consider two similarly sized units with the same overall utility, but one is on the 28th floor, and one is on the 45th floor. While the scope of views may be nearly the same, the price curve shows buyers will bid up for the same unit on higher floors.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4ee1403 elementor-widget elementor-widget-heading\" data-id=\"4ee1403\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.6.1 - 23-03-2022 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">Takeaways for Buyers and Sellers<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-79420bf elementor-widget elementor-widget-text-editor\" data-id=\"79420bf\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3><span style=\"font-weight: 400;\">Sellers<\/span><\/h3><p><span style=\"font-weight: 400;\">If you are considering selling your unit today, be sure to keep your analysis of recent sales as apples-to-apples as possible. As much as you need to find like-sized units in similar buildings, you\u2019ll need to keep your floor range in mind as well.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">For sellers on higher floors, be aware that without very recent same-line sales in your building as a guide, higher-priced floors behave in many ways like the art market, with the final value determined by buyer intuition more than the published price per square foot.<\/span><\/p><p><span style=\"font-weight: 400;\">For sellers in walk-up units, keep in mind that your unit will likely trade at a discount to the overall market and that units on\/above the fourth floor may be penalized even more for the extra steps involved.<\/span><\/p><h3><span style=\"font-weight: 400;\">Buyers<\/span><\/h3><p><span style=\"font-weight: 400;\">If you are in the market for a unit today, understand that market-wide prices are not a one-size-fits-all guide. To better understand your price range and possible floor premiums, focus on utility first and then factor in floor height using recent sales and currently listed units.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Keep in mind that as floors start passing 20, the prices become less precise and more driven by scarcity. If you\u2019re searching for the best value possible, consider top-floor units in walk-up buildings.<\/span><\/p><p>\u00a0<\/p><p>Originally published on Forbes.com: https:\/\/www.forbes.com\/sites\/johnwalkup\/2023\/02\/01\/floor-poor-how-manhattan-properties-height-affects-prices<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>When it comes to apartment buildings, there are many ways to differentiate \u2014 \u201cdoorman\u201d versus \u201cnon-doorman\u201d buildings are one key distinction, for example. But perhaps the most basic or popular way to differentiate buildings is by contrasting those with elevators and those without. As such, what floor a property is on can have a significant [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-insights"],"_links":{"self":[{"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/posts\/542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/comments?post=542"}],"version-history":[{"count":5,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/posts\/542\/revisions"}],"predecessor-version":[{"id":548,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/posts\/542\/revisions\/548"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/media\/532"}],"wp:attachment":[{"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/media?parent=542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/categories?post=542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.urbandigs.com\/blog\/wp-json\/wp\/v2\/tags?post=542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}