New York housing costs are going down, down, baby

New census data show that households are not spending as much on housing costs

New York /
Mar.March 07, 2018 06:00 PM

The exterior of an NYC apartment building

It may seem counterintuitive, but there are signs that housing in New York is actually getting more affordable.

A new survey from the U.S. Census Bureau has found that housing costs are not taking up as much of a household’s monthly budget and that the rental-vacancy rate is the third highest it has been since 1965, when the bureau did its first survey, according to the Wall Street Journal.

A construction surge and strong economy are to thank for the changes, with job growth starting to outpace rent increases. Household income for New Yorkers rose by 11 percent over a three-year period, while rents rose by 8.2 percent.

The survey found a record number of housing units in the five boroughs — 3.47 million — with more than 35,000 new rental apartments and 15,000 condos set to open over the next two years. The citywide vacancy rate was 3.63 percent, and in Manhattan it was 4.73 percent, the borough’s highest level in at least a decade.

Landlords are arguing that the City Council should remove some housing categories from rent regulation because of the strength of the housing market, primarily apartments in Manhattan and units renting for $2,000 or more. However, housing commissioner Maria Torres-Springer told the Journal that despite the rosy stats, New York “is still facing a dire affordability crisis.” [WSJ]Eddie Small


Related Articles

arrow_forward_ios
The median price for an existing home in the Phoenix area reached $399,900 in June (Getty)
Home prices continue to soar in Phoenix
Home prices continue to soar in Phoenix
Anderson Cooper is selling the apartment of his late mother Gloria Vanderbilt (Getty, Corcoran)
Gloria Vanderbilt’s Beekman Place apartment lists for $1.1M
Gloria Vanderbilt’s Beekman Place apartment lists for $1.1M
Some real estate agents are seeing a rebound in international interest, but others believe foreign buyers aren’t quite back yet. (iStock)
Some say foreign buyers are back, but evidence is anecdotal
Some say foreign buyers are back, but evidence is anecdotal
Susan Rice (Getty, iStock)
Susan Rice to co-chair home appraisal inequity task force
Susan Rice to co-chair home appraisal inequity task force
Rep. Alexandria Ocasio-Cortez and President Joe Biden (Getty)
Tenant advocates frustrated with Biden’s eviction response
Tenant advocates frustrated with Biden’s eviction response
Dumped by Macklowe and Churchill, Core Real Estate demands fees
Dumped by Macklowe and Churchill, Core Real Estate demands fees
Dumped by Macklowe and Churchill, Core Real Estate demands fees
The average iBuyer offer is now above 100 percent of market value. (iStock)
iBuyers upping offers as housing market rises
iBuyers upping offers as housing market rises
Slowdown in pending homes sales signals “turning point” for housing market
Slowdown in pending homes sales signals “turning point” for housing market
Slowdown in pending homes sales signals “turning point” for housing market
arrow_forward_ios

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

Loading...