As rents across New York City reach historic highs, fewer and fewer people are able to afford rent in the five boroughs, according to a new report from the real estate search company StreetEasy.
During the first three months of this year, only about 1 in 3 listings for market rate rentals were affordable — or cost less than half of household wages — for New Yorkers earning median incomes, the report found.
Even fewer apartments were affordable for Black and Hispanic New Yorkers, who earn less than their white counterparts on average, according to the Census Bureau’s five-year estimates.
“Affordability has declined in the city — for all people in the city — because of fast increases in rent,” said StreetEasy economist Kenny Lee, the report's author. “However, the effect of those increases have been felt disproportionately by race and ethnicity.”
While over half of market rate rentals are affordable to white households earning median incomes, only 14% are affordable to Black households and 10% are affordable to Hispanic households earning median incomes, the report found.
“That can be really daunting for a lot of renters of color in the city who are trying to be a homeowner one day,” Lee said.
A third of New York City households already spend more than half of their income just on rent, according to the most recent New York City Housing and Vacancy Survey from 2021.
It’s an affordability crisis that has only gotten worse in recent years, Lee said. In 2019, over 50% of listings on the StreetEasy platform were affordable to New Yorkers earning median incomes. But increased rent prices are leading rates to plummet, according to Lee.
The analysis comes as Gov. Kathy Hochul’s ambitious housing plan to spur development fell apart in budget discussions in Albany this month, although she said earlier this week that she plans to keep pursuing the proposal during the remainder of the legislative session.
James Whelan, president of the Real Estate Board of New York, the influential trade group that represents landlords, developers and brokers, said he hopes to see lawmakers expand programs that provide rent relief to tenants and help create more rental units — the kind of programs that lawmakers chose not to scale up as part of the state’s fiscal plan.
“The state Legislature just had the opportunity to move forward on a state-funded voucher program that would have provided renters immediate relief as well as a series of programs to create more rental units across various income levels that are desperately needed. It chose not to do so,” Whelan said in a statement.
“New York City’s housing crisis requires thoughtful, rational policy actions grounded in basic economics. Hopefully, they arrive sooner rather than later,” he added.
Lee pointed to inventory challenges as a main contributor to the escalating affordability crisis. Tenant advocates argue that the affordability gap stems from a lack of tenant protections and rent legislation at the state level.
“In order to address the housing crisis we need to be protecting tenants in their homes where they live, and taking measures that will stop the rents from climbing so dramatically,” said Cea Weaver, campaign coordinator at the tenant advocacy group Housing Justice for All. “Unfortunately, sensible, commonplace measures that would protect tenants from retaliatory evictions and price gouging rent hikes continue to stall in Albany and the state Legislature.”
Weaver said she believes the affordability crisis is unlikely to improve without state-level intervention.
“We can be producing more affordable housing, we can be protecting tenants from seeing drastic rent hikes and rent spikes,” Weaver said. “But we are not doing those things and the housing crisis isn't just going to wish itself away.”
This story has been updated to correct the spelling of James Whelan's name.
