New York City rents are rising twice as fast as wages, according to a recent story by DNAinfo.com, and New Yorkers are feeling it in their pockets disproportionately.
An apartment going for $2,000 a month for rent in 2010 would now get $2,657 a month, according to a study conducted by the website StreetEasy.com, and wages for the same amount of time just aren’t keeping up. While median rents increased 3.9 percent a year since 2010, wages increased by 1.8 percent over the same period.
To make matters worse, those working in the city’s lowest wage jobs were hit hardest. Those jobs, such as home health aides and dental assistants or other healthcare support services, actually saw their incomes fall 1.1 percent over the past seven years. At the same time, rents in the lowest bracket of the market increased the most since 2010 at 4.9 percent a year, with a 3 percent increase this year alone.
New York City Mayor, Bill de Blasio, has often discussed the rent versus wage gap when addressing issues such as the city’s record homelessness and the various programs trying to provide financial or legal assistance to families. The numbers for families with children in shelters shot up nearly 49 percent between 2010 and 2017, according to the DNAinfo.com, from an average of roughly 8,600 families a month to more than 12,800 families a month.
Ironically, the unemployment rate, has declined during that period. As of May, the city’s unemployment rate was 4.4 percent, down from 10.1 percent at the end of 2009, the StreetEasy study pointed out.
The group that’s been least affected by the rent increase are the city’s top 20 percent of earners. Not only did the wages of those earners grow the most over the same time period, their high priced rentals saw prices increase the least, at about 3 percent a year.
Whatever percentile you fall in, if you’re looking for a place to live that fits your budget, we can help. Contact a representative at Waterman Realty and Tax Pro, today.