How much does height matter in pricing a home?

There are so many things that go into the value of a home in New York City, with the most obvious being location, size and condition of the home. But, New York City is unique in that floor height can also change the listing price of a home, even within the same building!

 

How much does height really matter?

 

We sometimes hear people saying that they think that the higher the floor an apartment is on makes it worth $10,000 or $50,000 more per floor. We’ll be honest with you, it’s not that simple.

 

Let’s look at a more accurate way of how floor height affects apartment prices.

 

It’s true that in a typical high-rise apartment building, the higher up an apartment is the more desirable it is. So, with everything else being equal, these apartments would be worth more. But, not necessarily to the tune of $50,000 more. Here’s how it breaks down:

 

The bottom floor

The bottom residential floor is least appealing to most people. After all, who wants passersby looking in your windows or having the volume turned up on street noise?

 

Floors 2-7

Values on the 2nd or 3rd floors tend to see a good jump and then level off until you get over the 7th floor. Why the 7th floor? Because that’s where you clear the average height of townhouse roofs and all of a sudden you get open views!

 

After floor 7 you might see some small variations in value, depending on the size and condition of each apartment.

 

The top!

Once you get to the top three floors of a building, you’re going to see the biggest increases in price! Why are the top three floors the most expensive? Typically, they are seen as more “exclusive” and have much more expansive and coveted views.

 

The higher the building, the more likely these top floors are to clear other buildings nearby, giving you views that most homes don’t have. We typically see a 3%-5% increase in price for these ultra-high, luxury homes.

 

Here’s a great illustration from the New Yorker (which is no longer available online) for how height factors into cost:

Pricing in New York City is very nuanced… and requires a professional to do it accurately. We’re always here to talk through any questions you may have to find you the best deal possible!