NYC Rent Continues to Rise: Here’s How Much You Need to Earn to Rent in Every Borough

Anyone who has tried to rent an apartment in New York City knows that it is very competitive and high-priced, and the latest data suggests that this market is showing no signs of letting up.

In August 2024, the median asking rent for apartments in New York City’s four boroughs — Manhattan, Queens, the Bronx and Brooklyn — was $3,425, an increase of $76 from a year earlier.

The Big Apple’s median rent price is nearly double the national average of $1,753; it is one of the only major cities where rents are still rising.

“In contrast to the overall downward trend seen in the top 50 markets, the median asking rent in New York City continues to rise annually, increasing by $76, or 2.3%, compared to a year ago,” notes the economist. of Realtor.com Jiayi Xu. in her analysis. “Although New York City was one of the rental markets that saw the largest declines in rents during [COVID-19] pandemic, its average asking rent returned to pre-pandemic levels by spring 2022 and has continued to rise every year since.

And while salaries in New York City are often high enough to cover the metro’s astronomical living expenses, they’re apparently not high enough. The average New Yorker spends about 38.1% of his income on rent – far more than the recommended 30%.

Smaller, more affordable apartments are attracting interest

Once again, New Yorkers were looking for smaller, more affordable apartments. While the average asking rent for 0-2 bedrooms increased 4.2% year-over-year to $3,367, the average asking rent for 3-plus bedrooms fell 5% to $4,932. (Data for Staten Island is currently under review and is not included in these calculations.)

When you look at it over a five-year period, the changes are quite staggering. Rents for 0-2 bedroom apartments in New York are up 16.3%, while rents for 3 plus bedrooms are up 4.6%.

Much of the increase is likely due to artificially low pandemic-era rents intended to entice renters to stay in the city.

Manhattan rents fell

Manhattan’s median rent fell 2.2% year over year and 7.8% from its peak in 2019.

“This suggests a continued decline in demand in the more expensive neighborhood, perhaps reflecting a continuing trend of workers choosing to commute and take advantage of flexible work arrangements to secure more affordable housing, as Realtor previously found. com in the sales market,” says Xu.

This latest report found that to afford to rent a typical Manhattan home without spending more than 30% of your income on housing (including utilities)—considered the standard measure of affordability—you’d need a gross household income of $14,907 per month. , or $178,880 per year.

That’s down from July 2024, when you’d need a gross household income of $179,560 a year, but it’s still unaffordable for many.

Of course, real estate in New York City is all about location, which is why you’ll see a huge disparity in rents across the boroughs.

The Bronx remains the most affordable borough

The popularity of telecommuting is also likely contributing to an influx of interest in the outer boroughs—the Bronx, Brooklyn, and Queens in particular.

The Bronx continues to be the most affordable place to rent among the boroughs, with an average rent of $3,163.

Its relative affordability doesn’t mean the market is stagnant at all — the average asking rent rose 7.8%, or $228, year-over-year.

The borough has seen an influx of building construction in the past year, with 9,842 new units added to the market.

Incredibly, the median rent price in the Bronx has increased 56% since 2019, and is now $1,135 more than it was five years ago. To be able to afford rent in the Bronx, you’d need to make $126,520.

That’s a lot, considering the median income in New York City across the five boroughs is $76,577, according to a 2023 U.S. Census Bureau report.

Queens rents go up

Queens also saw significant rent increases.

The tree-lined City Hall offers an easy commute to downtown Manhattan, which is likely a draw for some New Yorkers who have been asked to return to office work.

The median asking price in Queens rose 11.1% year-over-year to $3,427. That’s $343 more per month than a year ago and 38.3% more than five years ago.

To afford the rent of a typical Queens apartment without spending more than 30% of your income on housing, you would need to have an annual income of $137,080.

Brooklyn prices also rose

Brooklyn has been awash with waterfront developments and luxury condos in recent years, so it’s no surprise that rents rose 5.1% year-over-year to an average of $3,790.

In 2023, 9,271 new units were built and 5,285 new building permits were filed.

That’s up 36.6% — or $1,015 — from five years ago.

You would need to make $151,600 to avoid spending more than 30% of your income on rent in Brooklyn.