If record-breaking rents weren’t the only headache for New York City residents this past year, there’s something now to add salt to the wound when it comes to affordability.
newly released Adjusted for inflation, rent growth in the city has outpaced wage growth by 23%, according to a report by local listings portal StreetEasy.
Real wages fell 9.1% year-on-year in August, while rents rose 13.4% over the same period, according to StreetEasy indicators.
Less than half of the city’s 4 million workers, specifically 48.2%, earn enough annual income to pay just 10% of the listed rental apartments in the summer, according to the report. rent. (Generally, renters are encouraged to keep living expenses below 30% of her income so as not to become a “rent burden,” the report adds.)
If there’s any good news, StreetEasy adds that asking rents are still rising, but at a slower pace. Over the past year or more, rent plummeted record lows, gradually rising Record and record bank-breaking highs.Impact of these changes includes tenants getting COVID sweet deals later faced massive rent increases On update — and Househunter get involved in a bidding war make a deal.
Among the city’s professionals, those hardest hit during this time are medical support workers, such as nurses’ assistants and home health care assistants. His typical annual income in the field is just under $39,000, which isn’t enough to cover just 2% of his inventory this summer, according to StreetEasy, without spending half the income on rent alone. .
Finding a roommate can save the burn, as it has for a long time. According to StreetEasy, the median rent for studios and one-bedrooms in the third quarter was $3,000, compared to two-bedrooms. and the average rent for a three-bedroom was $3,800. In such cases, splitting the rent would save $13,200 per person per year.
Rent growth is now flat and will likely ease a bit. The median asking rent in September was $3,500, down $25 from August, according to StreetEasy’s tally. Still, it’s 27% higher than last September.
However, reports show that a growing percentage of rental properties now offer discounts such as one month free rent on a 12-month lease. The figure could help pull tenants’ net effective rents down from his seven-year low of 6.6% in July to 8.6% in September. The share of discounted rental properties also rose to 17.7% in September.
The rebalancing of the rental market will be gradual, according to the report. Complicating matters for now is that many prospective homebuyers remain renters for the foreseeable future. rising interest rates To combat decades of high inflation.