Everyone knows that the Big Apple is expensive. But according to the NYU Furman Center and Capital One, the percentage of New Yorkers paying excessive shares of their income on rent has increased since 2000. Since 2008, more than half of all renters have become “rent-burdened” meaning the renter is paying 30% or more of their total household income on rent.
Approximately two thirds of New York City’s three million households rent. More than one million households were rent burdened in 2012. Of those, nearly 600,000 were severely rent burdened.
The hard part is that rents are rising faster than income which means the problem isn’t going away. The median rent in NYC rose 11% from 2005 to 2012 while the median household income rose only 2%. Of the boroughs in New York, four out of five rose. Manhattan outpaced them all, rising a hefty 19%. The Bronx rose 10%, Queens rose 8% and Brooklyn rose 12% while Staten Island decreased 3%.
The rent income gap affects a lot of people. In 2000, a rookie firefighter married to a substitute teacher with one child could have afforded more than 70% of available housing units. This same family saw their pool of affordable housing units shrink to less than half from 2007 to 2012. That’s a huge change in a short amount of time.
In 2012, 88% of extremely low-income households were rent burdened. This sector makes less than $22,420 per year. Eight-one percent of very low-income households were rent burdened. This sector makes between $22,420 to $37,350 per year. Sixteen percent of middle-income households were rent burdened. This sector makes between $89,650 and $149,400 per year.
There’s more. Read in the infographic below.