Buying a Manhattan Apartment Under $1 Million

By Hillel Fried, Licensed Associate Real Estate Broker (NY license 10301213249), founder of The Hillel Team at Compass. Updated November 2026.

Quick answer

• Yes, you can. Of our 230 sales with a recorded price since 2014, 147 closed under $1 million. Our median sale is $780,038.
• We've closed the most in Turtle Bay and Murray Hill, 29, and on the Upper East Side, 28, followed by the Upper West Side with 21.
• Staying under $1 million keeps you clear of New York's mansion tax, which starts at 1% of the price at $1 million.
• A co-op loan doesn't carry the city's mortgage recording tax, which helps your cash at closing.

Why $1 million is the line that matters

The $1 million mark is where New York's mansion tax starts. The state's tax department says it plainly: an additional tax "of 1% of the sale price applies to residences where consideration is $1 million or more." The buyer pays it.

So the difference between $995,000 and $1,000,000 isn't $5,000. It's $15,000, because at $1,000,000 you also owe $10,000 in mansion tax. If an apartment you like is listed just above $1 million, an offer just below it is worth thinking about.

Where we've bought under $1 million

Our own closed sales under $1 million, by area page, 2014 to 2026:

In Turtle Bay and Murray Hill, 29 of our 37 sales came in under $1 million. On the Upper West Side it was exactly half. Each area page lists the sales there and what's for sale now.

Co-op or condo under $1 million?

At this price, the cash you need at closing can decide it.

On a condo mortgage you pay mortgage recording tax. The buyer's share is 1.8% of a loan under $500,000 and 1.925% from $500,000 up. On a co-op loan, New York City's Department of Finance says "mortgages on individual cooperative apartments do not incur liability under the mortgage recording tax."

On an $800,000 loan, that's $15,400 a condo buyer pays and a co-op buyer doesn't. A co-op asks more of you in other ways, with a board package and usually an interview, so our condo vs co-op guide is worth a read before you decide.

Two more price lines below $1 million

The mansion tax isn't the only threshold. Two others sit at $500,000.

The mortgage recording tax steps up at a $500,000 loan. On a condo, the buyer's share goes from 1.8% to 1.925% once the loan reaches $500,000. That 0.125% applies to the whole loan, not just the part above the line, so a loan of $499,000 and one of $500,000 are taxed differently.

The city's transfer tax steps up above a $500,000 price. The Department of Finance charges 1% of the price at $500,000 or less and 1.425% above it. The seller normally pays it, but in new development your contract can shift it to you, so check before you sign.

Neither line is worth bending a purchase around. Both are worth knowing when you set your budget and your loan.

Help for first-time buyers at this price

If you've not owned a home in the past three years and your income qualifies, the city's HomeFirst program offers up to $100,000 toward the down payment or closing costs. For a one-unit home in Manhattan, the price limit is $661,000, effective 1 June 2026. Our first-time buyer guide has the details.

How to buy under $1 million, step by step

1. Set your ceiling with closing costs in it. A $975,000 apartment plus closing costs is a different budget from $975,000.
2. Get preapproved. Sellers and co-op boards will want to see it.
3. Choose co-op or condo. It changes your closing costs and your approval process.
4. Pick two or three areas. Our table above shows where we've closed most often at this price.
5. Price every offer from recent sales. In the building first, then nearby.
6. Watch the $1 million line. If the right apartment is listed just above it, a lower offer can save you the mansion tax as well.
7. Line up the board package early if it's a co-op.

Mistakes to avoid at this price

• Forgetting the mansion tax. At $1 million exactly, it's $10,000.
• Comparing asking prices instead of monthly costs. Maintenance or common charges and taxes can change which apartment is cheaper to live in.
• Skipping the building's finances. Read them with your attorney.
• Stretching to the last dollar. A co-op can ask to see cash left after closing.

What our buyers say

We've worked in New York since 2014, across 800+ transactions and $1.3 billion in sales, and we've been named the #1 Team at LGF Compass eight times.

"He was excellent at negotiating on our behalf with the seller." Buyer, Upper East Side, 2018 (Zillow review)

"They truly got me the deal of a lifetime." Emmanuelle Haye, first-time condo buyer, 2023 (Zillow review)

"We are not resident in NY. He did a great job educating us with the local RE market." Buyer, Upper West Side, 2024 (Zillow review)

Questions buyers ask

Can you buy an apartment in Manhattan for under $1 million?

Yes. Of our 230 sales with a recorded price since 2014, 147 closed under $1 million.

Which Manhattan neighborhoods have apartments under $1 million?

In our own sales, Turtle Bay and Murray Hill with 29 and the Upper East Side with 28, then the Upper West Side, Downtown, and Harlem and Upper Manhattan.

Is there a mansion tax under $1 million?

No. New York's mansion tax starts at $1 million, at 1% of the price, and the buyer pays it.

Is a co-op or a condo better under $1 million?

A co-op loan doesn't carry the city's mortgage recording tax, which lowers your closing costs. A condo is simpler to get approved for.

Can I use HomeFirst for a Manhattan apartment?

Yes, if you qualify and the price is within the limit: $661,000 for a one-unit home in Manhattan, effective 1 June 2026.

How much do I need for a down payment on a $1 million apartment?

It depends on the building and the lender. Co-ops can set their own minimum, so ask the buildings you like for their requirements.

Related guides

• Condo vs co-op in NYC
• Closing costs for NYC buyers, co-op and condo
• Buying an apartment in NYC for the first time
• All buyer guides

Looking under $1 million? Call us with your budget and the areas you like. We'll tell you where your money goes furthest, from our own sales.