Recent reports have found that the cost burden for New York City renters are burdened by high rent costs, while the cost of apartments in Manhattan continues to rise.
Study Finds the Cost Burden for NYC Renters is High
According to a recent study, more than half of New Yorkers are considered to be rent burdened as they devote more than 30 percent of their income to rent. When looking at national figures, 50.6 percent of renters are considered to be rent burdened. In New York City, 54.1 percent of renters are cost-burdened.
When looking at historical figures, renters across the country are doing somewhat better than last year. In fact, the number of renters who are cost burdened is down by 1.2 percent when compared to 2015 and by 2.8 percent when compared to the 2011 peak. This is still far from the 2000 figures, however, at which time only 38 percent of renters were considered to be cost burdened. It doesn’t appear that the problem is going to get much better for New York residents in the future, as rent in the city increased by 13.8 percent between 2005 and 2015. During this same period of time, renter income increased by just 1.9 percent.
While NYC rent may be burdensome, it is not the least affordable place for renters in the country. This honor goes to Miami, where 63.9 percent of renters are cost-burdened. Other cities in Florida as well as cities in California, including San Diego and Los Angeles, are also in a worse position than New York.
Manhattan Apartment Costs on the Rise
Recent reports have found that the average Manhattan apartment cost $2.2 million in 2015, which is up significantly from the average price of $1.9 million that was achieved in 2015. This was also the first time the average sales prices crossed the $2 million mark. Median sales prices also saw an increase, with the median sales price nearly crossing the million dollar mark in 2015 and reaching $1.2 million in 2016. Over the past decade, the average sales price for an apartment in Manhattan increased by 91 percent.
Within the co-op market, the average price of a home dropped from $1.4 million in 2015 to $1.3 million in 2016. The median price, however, increased to $825,000 from $785,000. Condos also experienced an increase, having gone up from $2.6 million in 2015 to $3.1 million in 2016. The average price per square foot also saw an increase, going up by 9 percent to $1,886.
Despite the downtown in the NYC luxury market, there was a remarkably high number of sales in the $10 million plus category. In fact, sales within this category are expected to cross $5.2 billion for 2016, which is significantly higher than the $3.5 billion mark achieved in 2015. While the total number of units sold at this price point is expected to increase from 189 in 2015 to 300 for 2016, most of the apartments sold in 2016 fell in the $1 million to $4 million price range.