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NYC rents are rising 7 times faster than wages, report finds

Rents in New York are rising seven times faster than wages, making it harder for low- and middle-income residents to find affordable housing, according to a new market analysis.

Economists at rental listing platforms Zillow and StreetEasy found that the yawning gap between median rent and average wage increases in New York City exceeded that of every other metro area in the country.

While average salaries in New York increased about 1.2% last year, median rents jumped 8.6%, according to Zillow rental data analysis and Bureau of Statistics statistics. United States Labor. But nationally, average wages have risen faster than rents.

Kenny Lee, an economist at StreetEasy, attributed rising rental costs to a severe housing shortage that triggers a “vicious cycle” of price gouging by landlords.

“The report really highlights the need for action,” he said. “New York’s historic shortage of affordable housing has made it difficult for renters to find affordable housing in the city.”

The dramatic increase in rents comes as millionaires flock to the five boroughs and median home sales prices also continue to climb. New York City now has a higher concentration of seven-figure earners than anywhere else in the world, according to a recent analysis by consulting firm Henley & Partners. Median home sales prices also rose more than 18% in the metro area in the first quarter of the year, according to new data from the National Association of Realtors.

New York state lawmakers last month approved legislation intended to curb dramatic rent increases for many tenants by allowing tenants to challenge increases above 8.5% in most cases. But the new “good cause” law — so named because landlords are supposed to provide reasonable justification for evicting tenants or raising rents — includes various exemptions and gray areas that have yet to be litigated.

New York City is trying to subsidize more housing for low- and middle-income tenants, but the affordability metrics used to determine rents for most of these units do not match the income levels of most residents, according to a recent study on rents and incomes. by the nonprofit Community Service Society of New York.

StreetEasy’s Lee said local renters face another unique affordability challenge that isn’t reflected in monthly rents: expensive broker fees. “Application fees, credit check fees as well as broker fees can add up,” he said.

Nonetheless, the report finds that over the past five years, the gap between median rent and wage increases in New York has narrowed compared to those seen in other parts of the country, particularly in major cities in Florida.

During this period, local rents increased by around 27.5%, while wages increased by around 11%. But rents in Tampa have increased by 50 percent, more than triple the rate of wage increases, according to the analysis. Meanwhile, a 53 percent rent increase in Miami was more than double the rate of wage growth there, and a 37 percent rent increase in Jacksonville was almost four times the rate of wage increases in the Northeast Florida metropolitan area.

“Florida has really seen the most dramatic change in affordability in the country,” Lee said.

News Source : gothamist.com
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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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