Price for Kips Bay Decorators Townhouse

That is a great question. While I think this is overpriced for a 20 footer relative to the market, I do not understand the current market pricing of townhouses. After all, there is huge wasted space in stairs, landings and exterior walls relative to a single floor apt. All this wasted space is included in the sq footage. In addition ground floor is not as useful of a space. In most cases, light is not as good in the front due to being a low floor. There are never any views.

Only explanations I can think of the current townhouse pricing are:
Many wealthy people with multiple children wanting to live in the city.
Large apts with 4-6 bedrooms are hard to find.
Complete independence to do what you want even relative to a condo.

Would love get thoughts of other people on why prime manhattan townhouse prices in the last 10 years have gone up dramatically.

Vulgarians with lots and lots of new money, who would never ever pass muster at good coops. And can't find condos with enough Caesars Palace charm. And yes, a lot of these are selling to criminals from firethorn parts who need to park their dirty money. Price is not at all unreasonable.

Trophy wives are still more expensive than trophy townhouses.

Same as other high end real estate but Venus and Mars (and more are aligned)

1 - Townhouses and Condos have become more desirable than Co-Ops as more freedom

2 - Lots of Wealthy People

3 - Renewed interest in living in NYC which is spreading to the outer boros as never before.

4 - Limited supply.

5 - Distrust in other investment options have caused people to look at real-estate as an investment rather than a place to live. How many trophy properties are lived in? Drive by the Plaza any night and count the number of lights that are on.

Two interesting articles on townhouses:

Townhouses vs. apartments:
http://sicularassociates.com/wp-content/uploads/2013/03/973Fifth-EdCave.pdf

Comparison of UES townhouse pricing in 2012:
http://sicularassociates.com/wp-content/uploads/2013/02/UESTownhousesJan13revised.pdf

Thanks Aaron. Great articles.