Jimmy McMillan was (and continues to be) right, the rent really is too damn high! Your bank accounts have probably noticed that New York City rents have risen faster than inflation during the past three years. According to new figures from the Census Bureau survey on NYC Housing and Vacancy, the relentless NYC housing squeeze shows no signs of releasing its greedy clutches. Although Mayor Bill de Blasio is planning on building more dense and affordable housing, it may not come soon enough for many NYC renters.
NYC Rents Outpace Inflation
New York is a city of renters. In fact, two out of every three homes in NYC is a rental. In the past three years, NYC rents outpaced inflation. The median rent from 2011 to 2014 rose 3.4%, after adjusting for inflation, to $1,200 a month. When we factor in utility costs, the median rose 4.3%, to $1,325. Although the rent jumped by 4.3%, the median household income rose by only 1.1%.
The median rent in 2014 was $1,500 for market-rate apartments, $1,200 for rent-stabilized units, $900 for rent-controlled homes and $583 for other apartments, a category that includes public housing.
If that’s not depressing enough, the survey shows that 30% of NYC renters are “severely rent burdened,” which in layman’s terms means that a person’s rent is more than 50% of the household income. Ouch.
Manhattan Rental Market Stats 2014-2015
|(face rent)||Jan-15||%Chg (Yr)||Jan-14|
|Average Rental Price||$3,974||4.6%||$3,800|
|Rental Price per Square Foot||$53.44||6.1%||$50.37|
|Median Rental Price||$3,299||5.9%||$3,114|
|Number of New Rentals||4,206||40.2%||2,999|
|Days of Market (From Orig. List Date)||58||-4.9%||61|
|Listing Discount (From Orig. List Price)||1.8%||3.6%|