Living in New York City often feels like a competitive sport where the main prize is just being able to afford your monthly expenses, but a new report has finally put some numbers behind that familiar feeling of rent-day dread.
While we all know that local housing prices have been skyrocketing lately, a recent analysis by ProfessPost revealed exactly where residents are feeling the squeeze the most based on the dreaded rent-to-income ratio.
According to the data, the Lower East Side is officially the neighborhood where rent hurts the most.
Residents in this iconic Manhattan pocket are reportedly spending a staggering 64% of their median income just to keep a roof over their heads.
With a median rent sitting at $4,200 and a median household income of $78,000, it seems the days of finding a “steal” on the LES are well and truly behind us.
The study looked at how much of a neighborhood’s average paycheck actually goes toward housing, and the results for the rest of the city aren’t much prettier.
Williamsburg followed closely in the number two spot with residents shelling out 60% of their income on rent, while Astoria and Harlem tied for third with a 56% ratio.
Here are the top 10 neighborhoods where the rent-to-income ratio is currently the highest:
- Lower East Side: 64%
- Williamsburg: 60%
- Astoria: 56%
- Harlem: 56%
- Bushwick: 55%
- Crown Heights: 54%
- Washington Heights: 54%
- Ridgewood: 54%
- East Village: 54%
- Bedford-Stuyvesant: 53%
Traditional financial advice usually suggests spending no more than 30% of your gross income on housing, but for many New Yorkers, that rule feels more like a distant dream than a reality.
In fact, every single neighborhood in the top 10 list sees residents spending more than half of their earnings on their apartments. A trend we’ve seen especially out of new, Gen Z renters lately.
There is a bit of a silver lining though if you are planning to spend your Friday night scrolling through Zillow for a new home.
The report also highlighted where your dollar might stretch a little further.
Neighborhoods like Riverdale in the Bronx and Forest Hills in Queens are much closer to that “healthy” 30% range, coming in at 32% and 33% respectively.
Staten Island’s South Shore actually took the title for the most manageable ratio at just 28%.
If you are planning an apartment hunt this weekend, you might want to keep these numbers in your back pocket before signing that next lease.