NYC Rents Have Outpaced Wage Growth by 23%, New Study Finds
It's the widest gap since 2008.
In an era of rising prices, it's no surprise that apartment rent costs in the country's largest city have climbed to eye-watering heights. Still, the true costs to New Yorkers may be even higher than you realized.
A new StreetEasy study found that the gap between real wage growth and rent prices in August 2022 stood at 23% after adjusting for inflation. According to the company's measurements, real wages were down 9.1% due to inflation, while rent prices soared 13.4%. The gap now stands as the widest since the 2008 financial crisis.
While real estate purchase prices in NYC peaked earlier this year and have started to fall due to rising interest rates, the same can't be said of the city's rental market. Prices are still at historic highs, with a recent studying finding that two-bedroom apartments are almost 50% more expensive than a year ago. According to StreetEasy, while asking rents are still rising, the growth rate has slowed, and price cuts are becoming more common.
If you're looking to try and save some money, check out our guide to negotiating your rent in NYC.