Rent prices in Manhattan continue to soar, more than making up for the ground lost at the start of the COVID-19 pandemic. But the amount you need to earn to qualify for an apartment might shock you.
As Notes of quartzreal estate brokerage Douglas Elliman found that the average price of a one-bedroom apartment in Manhattan is just under $4,000 a month now. In New York, a common requirement is to earn 40 times the rent as an annual salary. Applied to this price, a tenant would need to earn almost $160,000 a year to qualify for a new apartment. In Brooklyn, where the average cost is $2,900, that would mean an annual salary of $116,000. NYC median household income is just over $67,000 per year.
Even if you find one of the valuable rent-stabilized apartments in the city, you may have to pay exorbitant fees. A recent hell gate item found a rent-stabilized two-bedroom apartment on the Upper East Side. Originally listed at $3,150 per month, the stabilized unit turned out to be only $2,250 per month with legal limits on future increases, but came with a brokerage impression of $10,000 . This charge reduced the amortized rent to the list price. Potential tenants would have to pay a hefty premium to gain access to an apartment intended to protect residents from spiraling housing costs.
No law in New York State specifically states how much brokers are allowed to charge for their services, and NYC is one of the few places in the country where such fees are common. Regulators tried to curb the practice in 2020, but the state court system later confirmed this.
As Slate Remarks, a combination of factors may have conspired to push rents so high. These include the rise of remote work, the expiry of COVID-19 era agreements, the strengthening of rent stabilization laws in 2019, the popularity of Airbnb and changes in models. of household formation caused by the pandemic. Together, they are squeezing the budgets of low-income New York residents, who are finding less and less influence as they try to negotiate their cost of living.