Redfin CEO Glenn Kelman examines the housing situation, increased demand for housing and considers Federal Reserve Chairman Jerome Powell’s handling of rate cuts.
Year after year, the rising cost of rent in New York City puts more people out of the reach of home ownership. But a new report released Monday shows just how far New Yorkers can stretch their dollars to buy a home if they’re willing to move.
The report, from realtor.com, details the dramatic increase in rents in the Big Apple, which have been rising every year since the spring of 2022, when they began to rise to pre-pandemic levels.
According to the report, the median asking rent citywide in October was $3,374 — a 1.7% year-over-year increase.
Of the five boroughs, the Bronx, with an average rent of $3,164 in October, saw the highest increase, with an 8.6% year-over-year increase and a 54.4% increase over the past five years.
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The Manhattan skyline is seen at sunrise from the 86th floor observation deck of the Empire State Building on April 3, 2021, in New York City. (Angela Weiss/AFP/Getty Images)
Although Manhattan saw year-over-year and five-year declines, the median asking rent, as of October, was $4,415. That means an employer must bring home at least $176,604 a year to live comfortably.
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A report from realtor.com explains that the average renter in New York City can comfortably afford a home worth around $600,000 elsewhere. Below is a list of cities compiled by realtor.com where New Yorkers are most likely to put their monthly allowance to good use. The store assumes the highest monthly rent in New York City – Manhattan, at $4,415 – and a 20% down payment on a 30-year Freddie Mac mortgage with an interest rate of 6.43%, including property taxes and home insurance.
LONG BRANCH, NEW JERSEY
Topping the list is the New Jersey beach town of Long Branch. Reasons Manhattanites can afford a home here that costs around $624,000 – well above the median home listing of around $575,000.
Long Branch is also within a two-hour drive from New York City for former residents who want to live somewhere.
BRIDGEPORT, CONNICUT
About the same distance, but north of the city, is Bridgeport, Connecticut. Here, a Manhattanite can comfortably buy a home priced around $646,150, realtor.com concludes. That’s above the statewide median home list price of about $500,000 but should be comfortable enough to rent to a former Manhattanite escaping the monthly climb.
WEST PALM BEACH, FLORIDA
As more New Yorkers move to Florida, Manhattan renters may also consider the city of West Palm Beach, which is the primary residence of President-elect Donald Trump. With home prices here averaging around $655,500, that should be comfortable enough for a Manhattan renter. While options abound throughout the county the median home listing price is the lowest, at $434,995.
A “For Sale” sign outside a home in West Palm Beach, Florida, US, Wednesday, April 7, 2021. (Marco Bello/Bloomberg via Getty Images/Getty Images)
MYRTLE BEACH, SOUTH CAROLINA
For Manhattan renters willing to splurge on an expensive home, the median home listing in Myrtle Beach, South Carolina, costs about $752,000 — well above the national average of $355,000.
Beautiful beach homes overlooking the turquoise waters of Myrtle Beach, South Carolina. (Edwin Remsberg/VWPics/Universal Images Group via Getty Images/Getty Images)
PITTSBURGH, PENNSYLVANIA
The cheapest cities on realtor.com’s list are Pittsburgh, Pennsylvania, where renters in recovering Manhattan can comfortably buy a home for around $600,000. That’s almost twice the average listing price of homes in all of Pennsylvania.
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