New York’s rent is so high, you need a six-figure salary just to live here
The math says you need six figures to afford a basic apartment, but the real numbers don’t add up.
The story
New York City rents hit a record $3,785 a month, requiring an annual income of $215,000 to afford a typical Manhattan apartment, while buying a home costs $7,000 more per month than renting.
Source: fortune.com
Our reading
The report says you need $215,000 a year to afford a Manhattan apartment, but it doesn’t say who gets to keep that money. The math assumes a 30% rent-to-income ratio, which is a rule that exists more in theory than in practice for most New Yorkers.
Meanwhile, the average hourly wage only rose 4.2%, and in some sectors, it dropped. That means the people who actually make the city run are getting squeezed harder than the people who can’t afford to live here.
The $215,000 number is just the cost of renting. Buying a home is even more expensive, which means the only way out is to pay more for the same thing.
