A new analysis from Realtor.com sheds light on the affordability crisis occurring in New York City. The median asking rent in the Big Apple comprised 55% of a typical household income in the second quarter, much above the widely accepted 30% rent-to-income standard. The second quarter figure is almost 10% above the national median in the for-sale market, which sits at 44.5%, and more than double the share of typical renters across the nation.
The boroughs are feeling the pain when it comes to rents. The rent-to-income ratio in the Bronx is a high 81.6%, while it’s 60.6% in Brooklyn, 56.9% in Manhattan, and 49.4% in Queens.
“In the Bronx, rent now eats up about 82% of a typical household income, nearly triple the recommended standard of 30%. Even if rents were frozen today, it would still take two decades of steady income growth to restore affordability,” said Realtor.com chief economist Danielle Hale. “New Yorkers can’t wait decades to meaningfully close this gap. Housing supply has already featured prominently in this year’s mayoral race. These figures are why the city’s mayoral candidates must have a credible, multifaceted plan to tackle housing supply if they hope to be elected to lead the city in the fall.”
Rents in the Bronx have seen the largest increase of any borough, rising 61.4% since 2019.The median asking rent is $3,132, nearly $2,000 more than the maximum affordable rent under current income, which is $1,152. Rents increased 40.8% in Brooklyn in the past six years with a median asking rent of $3,835, while the maximum affordable rent under current income is $1,892. A similar story is in Queens, where rents increased 40.2% since 2019 with a median asking rent of $3,349 and a maximum affordable rent under current income at $2,035. In the past six years, rents have only increased 2.4% in Manhattan with a median asking rent of $4,569, while the maximum affordable rent under current income is at $2,408.
According to Realtor.com, renters make up 70% of households in New York City, with residents wanting solutions around affordability from their elected officials. The analysis noted that without interventions aimed at significantly ramping up affordable housing supply, the affordability gap could linger for decades, and it could still take 12 to 20 years of steady income growth and flat rent growth for costs to drop to the 30% rent-to-income standard.
