A city with a million tags and titles, and a glossy lifestyle, attracts millions every year from across the globe to visit, move in, and buy a spot in high-rises across the city. Once they dive into the reality of the real estate market is when they feel the pinch in their pockets.
New York has long been known as one of the most expensive cities to live in. With thousands of people commuting from as far as Connecticut and as close as Jersey City and beyond, there is a reason - cramped spaces and soaring rents.
If you were one of those people who anticipated a downward spiral in the real estate market, following the recession and downturn of the economy, which would ease the stress on NYC renters, you know now, you were SO wrong.
Over the years, New Yorkers have been known to be spending as much as 50% of their income on rents. Its almost like a tornado swirl eating its way across the 5 boroughs, making it oh-so unaffordable than it has ever been, and with more than two-thirds of the city being renters, they are sure feeling the squeeze.
The recent Furman Center report - an NYU center focused on real estate and urban policy, hit upon segments like stabilized renters, which is a rarity. The results were not surprising, considering the trend in declining household incomes, increasing rents, and increase in families opting for Public Housing and rent stabilized apartments.
Statistics looked like this - 8.2% live in Public Housing, 8.4% in subsidized housing, and a huge chunk 45.4% lived in rent control or rent stabilized buildings.
The steady rise in rents is evident in the numbers, which read $999 a month back in 2007, and $1,084 in 2011, which is an 8.5% increase in four years.
The issue however, is the big rent-income gap, that is making living in the city, heavy on city dwellers. It’s not only increase in rents that have become a pain-in-the-neck, its increasing lease renewal rates, increase in utility costs, and a shortage of apartments, which is resulting in the demand vs supply imbalance.
Image Courtesy NY Times
With the recent increase in building permits that has tripled since 2012, we are hoping for some relief for our fellow renters in the city, who have long been buried by the rental burden.
