Rich with cultural diversity and a distinct vibe, there are reasons why New York City is one of the top cities in the world—but life in The Big Apple can come with a high ticket price. With high rental prices in NYC taking chunks out of city residents’ paychecks, it may seem out of reach for many to find homeownership within the five boroughs, but this doesn’t mean it isn’t an option.
According to the latest market report from Realtor.com, the median asking rental price in NYC reached $3,374, a 1.7% year-over-year climb. The report also broke down rent prices by borough. In October, the Bronx saw a median asking rent of $3,164, an 8.6% year-over-year boost, and an increase of a mind-boggling 54.4% growth over the last five years. Slightly higher, Queens saw an October median rent of $3,434, a 7% year-over-year jump in rent prices, and a nearly 37% jump over the last five years.
Posting both annual and five-year declines, Manhattan still saw a staggering median ask of $4,415, which requires an annual income of $176,604 to afford life in the area, according to Realtor.com. Not surprisingly, Manhattan has a rather low homeownership rate of 25.4%.
Yet, if Manhattan renters are still paying this much rent per month for no equity, a question arises: How far could their money stretch to purchase a home outside of the city’s limits? According to Realtor.com, the typical city renter could afford a residence valued at nearly $600,000 somewhere else.
Big City, Big Prices
While NYC’s median rent price is roughly (already) double the national average of $1,753, it is still one of the only major cities where rents are still rising.
“In contrast to the overall declining trend seen across 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 Realtor.com economist Jiayi Xu in her analysis. “Although New York City was one of the rental markets that saw the steepest rent declines during the [COVID-19] pandemic, its median asking rent rebounded to pre-pandemic levels by spring 2022 and has continued to rise annually since then.”
Salaries in NYC are often higher to cover the city’s astronomical costs of living, but they still aren’t high enough, with the average New Yorker spending around 38.1% of their income on rent.
Stretching Your Dollar
In Realtor.com’s report, the platform gathered the top US cities where Manhatten residents looking to leave town entirely or have flexible work arrangements could stretch their dollar.
“Shoppers who have the flexibility to move away and keep their housing budget at Manhattan rental levels can fast-track the path to homeownership,” says Xu.
Cities rounded up by Realtor.com include Long Branch, New Jersey, which is a longtime beach destination right on the Jersey Shore. A $624,000 home here is more affordable to buy on a Manhattan budget despite being slightly above the state’s median home list price of $574,500.
Also, not far from the city, Bridgeport, Connecticut, is another area Manhattan residents looking to move have been checking out. This area is right off Amtrak and Metro-North train lines, with houses listed at $646,150, which is doable for those already paying Manhattan rental prices.
For residents looking to move a bit further away, Realtor.com noted Pittsburgh, Pennsylvania, as a worthy destination. A home priced at $599,800 in The Steel City would be affordable for a New Yorker paying Manhattan rental prices, even more affordable with median asking prices in Pittsburgh at $309,900.
Other noteworthy cities that Realtor.com reported as options for Manhattan residents ready to move include West Palm Beach, Florida, and Myrtle Beach, South Carolina.
