New York rents are so high that only 5% are affordable for the average salary
Essential workers hit hardest by New York City’s housing affordability crisis
SOARING rents and high upfront costs mean that fewer than 5 per cent of New York City apartments were affordable for the average local worker last year.
New Yorkers earned on average just under US$89,000 last year, meaning they could afford up to US$2,216 per month on housing without spending more than 30 per cent of their annual income, according to a new report by Zillow Group’s StreetEasy and tech:nyc.
Factoring in average upfront costs, which includes the first month’s rent, a security depot and broker fees that amounted to US$10,454 last year, the average worker could only afford 4.4 per cent of rentals on the market without breaching that affordability threshold, the report said.
In New York, as in much of the rest of the country, salaries have not kept up with increasing housing prices. Median asking rents jumped 8.6 per cent to US$3,475 last year, while average wages in the city climbed just 1.2 per cent, the report said.
The city’s housing shortage has also worsened, with a 380,047 deficit in homes outpacing metro areas in San Francisco, Chicago and Boston combined.
The city’s housing affordability crisis hit essential workers the most. Those in healthcare support, food preparation and transport services earned less than US$70,000 last year, meaning they could only comfortably pay for 1 per cent of New York apartments, the report said. Even tech workers, who earned an average of US$135,089, could only afford 35 per cent of rentals on the market.
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“Spending more on rent leaves a larger hole in renters’ budgets and makes it difficult to save for long-term goals, such as a down payment on a home,’‘ according to the report. “However, many New Yorkers don’t have a choice.’‘
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