The New York City real estate market has gotten so bad that people are paying millions to live in the basement

pulse

August 20, 2018 8:17 PM

With more space at a fraction of the cost of other units in their buildings, below-grade spaces are becoming an increasingly attractive option among New York City homebuyers — but they still cost millions.

Below-grade spaces offer more space at a fraction of the cost of other units in their buildings.
A pilot program is in the works for the creation of legal basement and cellar apartments in Brooklyn — if successful, it would ideally bring more affordable housing.

New York City real estate may currently be a buyer's market at all price points, but that doesn't mean it's becoming any less outrageous.

The real estate market in New York City has gotten so expensive that many buyers are forgoing apartments in the sky for basements underground, according to a recent New York Times article.

For buyers, these below-grade spaces offer more space for roughly one-fourth of the cost per square foot than other units in the same building, reports Chen, citing data from StreetEasy. But they often still cost millions.

One couple who spoke to the Times spent $1.2 million in 2015 on an 1,800-square-foot duplex studio below street level in Midtown East. It was the only similarly sized space within their budget below 135th street, and they still spent over a year renovating to bring more light in.

Another buyer said she bought a 2,100-square-foot, two-bedroom underground duplex on the Upper West Side for $2.3 million — twice the size of her place in Williamsburg, Brooklyn. She told the Times the smaller apartment above her was listed for roughly $1 million more.