Redfin CEO Glenn Kelman assesses the state of housing, the increase in homebuying demand and weighs in on Federal Reserve Chairman Jerome Powell’s handling of rate cuts.
Year after year, rising rent costs in New York City are putting homeownership out of reach for more and more people. But a new report released Monday shows just how much farther New Yorkers could stretch their dollars to comfortably purchase a home if they’re willing to move.
The report, from realtor.com, quantifies the dramatic rent increases in the Big Apple, which have been rising annually since spring 2022, when they first rebounded to pre-pandemic levels.
According to the report, the median asking rent citywide in October was approximately $3,374 — a 1.7% year-over-year climb.
Of the five boroughs, The Bronx, with a median asking rent of $3,164 in October, saw the steepest rise, with an 8.6% year-over-year boost and a 54.4% boost over the past five years.
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The Manhattan skyline is seen at sunrise from the 86th floor observatory of the Empire State Building on April 3, 2021, in New York City. (Angela Weiss/AFP / Getty Images)
Though Manhattan saw annual and five-year declines, the median asking rent price, as of October, was a whopping $4,415. That means a renter would have to bring home at least $176,604 a year to live comfortably.
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The report from realtor.com reasons that the typical renter in New York City could comfortably afford a home valued at roughly $600,000 elsewhere. Below is a list of cities compiled by realtor.com where New Yorkers could potentially be putting their monthly rent to better use. The outlet takes the top monthly median rent in New York City — Manhattan, at $4,415 — as well as a 20% down payment on a 30-year fixed Freddie Mac mortgage with an interest rate at 6.43%, including property taxes and home insurance.
LONG BRANCH, NEW JERSEY
Making the top of the list is the New Jersey beach town of Long Branch. The outlet reasons that Manhattanites could afford a home here priced at around $624,000 — far above the statewide median home listing of around $575,000.
Long Branch is also within a two-hour drive of New York City for former residents wanting to stay in some proximity.
BRIDGEPORT, CONNECTICUT
Approximately the same distance, but north of the city, lies Bridgeport, Connecticut. Here, a Manhattanite could comfortably buy a home priced at around $646,150, realtor.com concludes. That’s above the statewide median home listing price of around $500,000 but should be comfortable enough for an ex-Manhattanite fleeing steep monthly rent.
WEST PALM BEACH, FLORIDA
With many former New Yorkers moving to Florida, Manhattan renters could also consider the town of West Palm Beach, the primary residence of President-elect Donald Trump. With home prices here averaged at around $655,500, that should be comfortable enough for a Manhattan renter. Though options abound for the rest of the state where the median home listing price is even lower, at $434,995.
A “For Sale” sign outside a house in West Palm Beach, Florida, U.S., on Wednesday, April 7, 2021. (Marco Bello/Bloomberg via Getty Images / Getty Images)
MYRTLE BEACH, SOUTH CAROLINA
For Manhattan renters willing to splurge on a more expensive home, average home listings in Myrtle Beach, South Carolina, go for around $752,000 — well above the statewide average of $355,000.
Stately beach homes look out onto the blue waters of Myrtle Beach, South Carolina. (Edwin Remsberg/VWPics/Universal Images Group via Getty Images / Getty Images)
PITTSBURGH, PENNSYLVANIA
The cheapest among the cities on the realtor.com list is Pittsburgh, Pennsylvania, where recovering Manhattan renters can comfortably buy a home at around $600,000. That is nearly twice the average listing price for homes in the rest of Pennsylvania.
