Buying a house in New York City: Is it even a possibility?

My husband and I both seek to own property in our lives. Growing up, both of our parents owned houses, and when we start a family, we would like to own property to raise our children. While we don’t necessarily envision a white picket fence with a huge yard and a pool, ideally we both would like a three bedroom house, with a yard, that rests on a street that has trees where our kids can ride their bikes on the sidewalk in front of our house. I know that’s sickly idealistic to some people, but generally, we envision raising our kids similar to the way that we were raised. Ideally, we’d like to start our family within the next 3 or 4 years.

This vision is problematic in New York City. It seems very difficult to get the amount of property we desire in New York City for a price that is affordable. Currently we pay 900 a month for our apartment in Marine Park, Brooklyn. This neighborhood meets some of the criteria: we have a back yard and a sidewalk, but it is only a one bedroom apartment, and we are renting it, not owning. Further, this apartment is not close to either of our jobs now. It’s a nice neighborhood, but the commute for me is very harsh. We can park our car easily, but it’s not close to any train line. Ultimately, the next time we move we want to move into our first house. Is it possible for us to afford our dream house in NYC? What costs would be involved to buy a house in this area?

In the initial part of my research, I want to focus on a few key neighborhoods in NYC where I would consider living because they have houses. Because of space constrictions, and the fact that it doesn’t fit into our ideal situation, I want to eliminate housing in apartments and co-op buildings. In this search, I primarily am going to focus on parts of Brooklyn, Queens, the Bronx, and New Jersey, as neighborhoods in these boroughs and states have housing available. I also may compare housing prices in Brooklyn to the place where I grew up, Buffalo, New York.

Queens:

Multi-Family Home, which I think means we could rent out part of the home out to supplement our income. Cost: $429,000

http://www.trulia.com/property/photos/1080845714-97-34-78th-St-Queens-NY-11416

According to the Mortgage Calculator on the website, with a $100,000 deposit, the monthly mortgage would be around $1900 a month, a $1000 a month raise in our costs. This property does not exactly fit our ideals: it does not have a backyard, but it does have a small front yard, a tree-lined street, and a parking garage for our cars. It would be convenient for my husband to get to work, assuming he would continue to work in the same park, and I would be able to get on the A train. This property seems to be average in comparison to property in the area.

Bronx:

Multi-Family Home, which I think means we could rent out part of the home out to supplement our income. Cost: $375,000.

http://www.trulia.com/property/1085405416-2652-Bainbridge-Ave-Bronx-NY-10458

According to the Mortgage Calculator on the website, with a $75,000 deposit, the monthly mortgage would be around $1600 a month, about a $700 a month raise in our costs. Again, although this is a house with a lot of space, it does not have a backyard or a parking garage for our car. It is convenient to where I work, but not where my husband currently works. This property seems about average price for the area.

Single Family Home, which means we would get it all to ourselves. Cost: $275,000

http://www.trulia.com/property/1086647149-1865-Hobart-Ave-Bronx-NY-10461

According the Mortgage Calculator on the website with about a $60,000 deposit, the month mortgage would be about $1100 a month. This house is kind of small, only 1,218 square feet, but it does have a backyard. It does not have any parking.

New Jersey

Single Family Home, Teaneck, New Jersey. We would get it all to ourselves. Cost: $349,000

http://www.trulia.com/property/1042049530-20-Beveridge-St-Teaneck-NJ-07666

According the Mortgage Calculator on the website with about $75,000 deposit, we would pay around $1,600 a month. Although the listing does not describe the square footage, the house fits all my criteria: backyard, multiple bedrooms (I think), driveway, sidewalks, and even a park near by. Out of all the previous properties, this one is the most ideal. Public Transportation from this part of New Jersey goes to NYC on a regular basis.

Single Family Home, Leonia, New Jersey. Single Family Home… we would get it all to ourselves. Cost $375,000.

http://www.trulia.com/property/1086266390-103-Van-Orden-Ave-Leonia-NJ-07605

According to the Mortgage Calculator on the website with about a $75,000 deposit, we would pay around $1,650 a month. Although this house does not have a picture available on the website, based on the description it would fit my criteria for a house.

Buffalo

Single Family Home. We would get it all to ourselves. Cost: $98,000.

http://www.trulia.com/property/mortgage/1085965899-234-Villa-Ave-Buffalo-NY-14216

According to the Mortgage Calculator on the website, with a $20,000 deposit, we would have to pay around $450 dollars a month, about $350 dollars a month less than what we pay a month now to own a home that meets all of our criteria: Backyard, sidewalks, driveway, bedrooms… everything.

It’s hard not to notice to have the same ideal home that we grew up with, it will cost a lot more to get a home with less space and similar amenities to the place where we grew up. In my initial gatherings, it seems a place in the Bronx would be the most cost-effective place to go.

As I continue my research, it’s important that I talk to some people that I know who own their houses. I can think of two people in my school who I could talk to that own property: apartments. Two teachers at my school that I know of also own houses in New Jersey. They might act as good resources to learn more about the process of buying a house in the city.

Also, I might be interested in looking at different savings programs. I remember when I became a teacher there were incentive programs through HSBC to start a savings fund where the bank would match your deposits to put as a down payment on a home. The UFT has some information about teachers looking to buy a house. According the UFT criteria, the only thing keeping me back from buying a house in the area is feeling secure that I have enough money. A different part of the website gives resources of lenders that have programs to help teachers buy a house.

Overall, this whole process of buying a home in the NYC is very discouraging when I look at housing prices in Buffalo. It’s hard not to compare the difference. I really wonder how many people who grew up in Western New York and move to NYC actually buy property here. I suppose I might want to expand my search for different property available in Long Island. I’m afraid that the continuation of this project will only result in my dismay, but I will continue to push forward.