Half of New York residents can’t afford the rent: study

Housing costs going up, incomes going down

New York /
Mar.March 11, 2014 11:30 AM

More than half of New York households are dishing out more on rent than they can afford, according to a report by the state comptroller.

Since 2000, the share of renters in the state who put more than 30 percent of their income towards housing costs has increased sharply, from 40.5 percent to 50.6 percent, according to a report by Comptroller Thomas DiNapoli, released earlier this week.

According to federal guidelines, housing is not considered to be affordable when costs exceed the 30 percent threshold.

Based on that standard, a full third of of homeowners also can’t afford their mortgages — up from 26.4 percent in 2000, the New York Times reported.

In New York City nabes, the percentages are even higher. In the Bronx, about 57 percent of renters pay more than 30 percent of their income for rent and utilities, the report showed. Brooklyn and Queens also had some of the highest percentages of households above the affordability threshold.

The lack of affordability can be attributed to rising housing costs coupled with declining household incomes, according to the report.  Median housing costs increased 18.6 percent for renters since 2000, and 9.9 percent for homeowners. But median household income for homeowners declined 1.6 percent since 2000, and 7.1 percent for renters.

The problem is exacerbated by low vacancy rates, which translate to higher rents, as well as rising property taxes, the Times reported. [NYT] — Angela Hunt


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)
New NYC rent law “beginning to shut down investment”
New NYC rent law “beginning to shut down investment”
Carl Heastie, Andrew Cuomo and Andrea Stewart-Cousins. (Getty)
NY close to approving $2.4B rent relief bill — but its rollout will be the real test
NY close to approving $2.4B rent relief bill — but its rollout will be the real test
Sen. Jabari Brisport (Photo via Jabari for State Senate; iStock)
Socialist notches key NY Senate appointment
Socialist notches key NY Senate appointment
Charles Kushner and 18 Sidney Place (18 Sidney Place via StreetEasy)
Tenants get class-action status against Kushner in Brooklyn rent case
Tenants get class-action status against Kushner in Brooklyn rent case
A new report argues that distress and declining values in rental properties is an opportunity for decommodification of multifamily buildings. (iStock; Chart via Furman Center)
Tenant group sees opportunity in multifamily foreclosures: report
Tenant group sees opportunity in multifamily foreclosures: report
Bronx Assembly member Jeffrey Dinowitz and Gov. Andrew Cuomo (Getty)
Landlords face hard deadline on court-ordered building repairs
Landlords face hard deadline on court-ordered building repairs
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...