The New York Post recently profiled the 175-square foot “micro-studio” apartment of the Prokop family, located in the Morningside Heights neighborhood of New York City. It has the distinction of being the smallest apartment in New York, at a size that’s smaller than many people’s guest bedrooms.
At 14.9 feet long and 10 feet wide, it’s about as narrow as a subway car and as claustrophobic as a jail cell. […]
It has two small windows with views of upper Manhattan; hardwood floors; a tiny kitchen with a mini-fridge and hotplate; and a closet-sized bathroom with a shower, sink and toilet.
They couple only paid $150,000 for the apartment, which may seem a steal in comparison to the high-priced city condos in neighboring buildings. But a closer look reveals that -though the Prokop family seems thrilled with their new purchase – they didn’t get quite as good a deal as it seems.
If you take the condo’s price of $150,000, and divide it by the square footage, you find that Mr. and Mrs. Prokop paid about $858 per square foot.
Compare that to this 750 square foot apartment with 1 bedroom and 1 bathroom. It’s located on the same block, has more amenities, and four times the space. And yet, with an asking price of $560,000, it’s selling for over $100 less per square foot than the Prokop’s micro-studio.
Higher cost for the convenience of a smaller quantity is nothing new. Restaurants charge $10 a glass for wine that costs $40 a bottle (which usually contains 5 glasses). Grocery stores charge $1.50 for 20 ounces of purified water or soda near the cash register, and $.99 if you buy a gallon or 2 liter of the stuff.
There are different reasons for each of these price differentials. And although there may be a higher price associated with smaller size, sometimes the trade-off is worthwhile. For instance, some restaurant patrons may only want a single glass of wine. In this case, the Prokop family felt the small space fit their lifestyle, and $150,000 was in their price range.
The point is this – just because the sticker price seems low, it doesn’t necessarily mean you’re getting a good deal. Before you pull the trigger on any purchase, make sure you know all your options, and whether there’s a better bargain out there.
