Us millennials and gen z-ers are truly just trying to stay afloat here in NYC–the country’s most expensive city–what with CitiBike fares increasing, subway fare increasing, and soaring rent prices. Hell, even pizza prices have gone up 19% over the last 8 years.
And, in not so breaking news, this study just found that New York housing has become way less affordable for millennials and gen z than it was for baby boomers. Moreover, New York has one of the worst generational wealth gaps in the country.
Let’s get into it.
A recent study done by RealtyHop reviewed the 1970 (when baby boomers were beginning to purchase starter homes) and 2022 US Census reports and calculated the housing multiple using the following data points:
- 1970 Median owner home value by city
- 1970 Median families income by city
- 2022 Median owner home value by city
- 2022 Median families income by city
By comparing this data they were able to find how much less affordable housing is for young people today than it was in 1970 as well as determine the generational wealth gap.
According to the numbers, New York housing has become 3.17x more unaffordable for millenials and gen z than it was for baby boomers.
In 1970, the median family income for New York was $9,682, and the median home value was $25,700–a difference of $16,018. Compare that to today (2022, to be specific), the median income has increase to $86,984 but so has the median home value, clocking in at $732,100–a whopping difference of $645,116.
On one hand at least we can say we didn’t rank in first place–that title goes to our friends over in LA (sorry guys!) On the other hand, that doesn’t really help us since, of course, we’re not living in LA.
As for generational wealth gaps New York has one of the worst, ranking 11th place in terms of unaffordability from 2022 compared to 1970. But again, at least we’re not the first!
Moral of the story: please stop asking us millennials and gen z-ers why we’re not buying houses!
The full study can be found here.