NYC rents unaffordable for 95% of average workers; Only 8 US states have affordable housing based on 32% rule

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Essential workers in New York City face the harshest impact from the city’s housing affordability crisis, with soaring rents and high upfront costs rendering most apartments unaffordable.

  • Average New Yorker’s annual salary: just under $89,000
  • Affordable monthly rent (30% of income): up to $2,216
  • Average upfront rental costs: $10,454 (first month’s rent, security deposit, broker fees)
  • Only 4.4% of rentals affordable without breaching affordability threshold
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A graph shows the median household income and housing costs relationship at county and state levels, highlighting the proportion of income spent on housing.

  • High cost of living cities have higher median salaries and housing costs
  • Mortgage costs calculated on a 25-year amortization at 7% fixed rates with 5% down payment
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Sources:

https://www.bloomberg.com/news/articles/2024-05-21/nyc-rents-are-so-high-that-only-5-are-affordable-for-the-average-salary

https://wealthvieu.com/hhi-vs-housing-costs#2024