The home prices are not only sky-high in New York City, apparently so are the down payments.
“The size of a down payment is important for both its real value, which determines the amount of equity a buyer will have in a home and how much the home’s sale price is covered by the down payment, which often determines a buyer’s purchasing power,” StreetEasy writes in new blog post, which analyzed how much New Yorkers typically put down as a down payment for condos.
Using public mortgage data from the New York City Department of Finance, the analysis excluded co-ops as they “are not considered real property,” and therefore lack mortgage data, according to StreetEasy.
In 2015 a typical down payment as a share of a condo’s total sale price was 27.1 percent in 2015.
“Considering that the standard or most popular option across the country is 20 percent, our findings suggest that New Yorkers save up a considerable amount for a slightly larger down payment on a condo unit,” StreetEasy concluded.
The Bronx matches that standard at 20 percent with a typical down payment of $25,200, but the other boroughs are above it: 30.6 percent in Manhattan with a typical down payment of $447,398, 26.7 percent in Queens with a typical down payment of $124,406, and 25 percent in Brooklyn with a typical down payment of $176,250.
Eastern Queens in particular was where condo buyers are expected to put down the highest down payments, with the area’s Murray Hill section having a massive typical down payment of 43.9 percent or about $197,528.
Check out the interactive map below to see down payment trends in more New York City neighborhoods: