Homes in the Big Apple have become so unaffordable that even high-earning tech workers are getting priced out of the market.
Tech workers in New York City earning about $135,089 a year can only afford one in three apartments in NYC in 2023. Entry-level tech workers, who make an average of $75,262, can only afford 2.1% of all studio and one-bedroom rental units in the city.
That is according to a new report from real estate listings website StreetEasy, which noted that median asking rent jumped to $3,475 last year---up 8.6% from the year before and the highest recorded since 2010. In comparison, the average wage of NYC workers only rose 1.2% since last year, per data from the US Bureau of Labor Statistics.
StreetEasy defines a rental as "within reach" if it costs less than 30% of an individual's gross annual income. In line with that, employees in NYC would need to earn $139,000 to comfortably afford the median asking rent.
As a result of the city's housing affordability crisis, newly graduated tech workers are now forced to move to other metro areas with more affordable housing. This, in turn, makes it harder for businesses in NYC to "hire and retain these workers eager to start their new careers."
Where Are Rentals the Most Unaffordable?
Of all boroughs in NYC, rentals in Manhattan---where tech sector jobs make up 87% of all openings---were the most unaffordable. The median asking rent for apartments in Manhattan was $4,000 in 2023. Entry-level tech workers can only afford 0.6% of all rentals listed.
Following Manhattan was Brooklyn, where the median asking rent for studios and one-bedroom units was $2,899. Entry-level tech workers could only afford 2.5% of the rental inventory.
The most affordable borough for tech workers in NYC was Staten Island, where the median asking rent is only $1,650. This means entry-level tech workers could afford about 46.4% of all rental listings. However, there were only 127 apartments listed in 2023. Most homes on Staten Island are also owner-occupied.
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