The median asking price in New York City has continued to increase year-over-year and shows no signs of letting up. The prices have increased so much that even residents earning $135,000 a year are no longer able to afford rent.
In August, the median asking price for rental properties in New York City was $3,425, up $76 or 2.3% year-over-year. For perspective, the national median asking price is $1,753. That is down $2 from July 2024. New York City is one of the only major metro areas with increasing rents.
More specifically, the asking rent for units with 0 to 2 bedrooms was $3,367. That increased $135 or 4.2% year-over-year. However, the median rent for units with three or more bedrooms fell by 5.0% to $4,932.
"Although New York City was one of the rental markets that saw the steepest rent declines during the [COVID-19] pandemic, its median asking rent rebounded to pre-pandemic levels by spring 2022 and has continued to rise annually since then," Jiayi Xu, an economist for Realtor.com, said.
Which Boroughs Saw the Largest Price Increase
Among all boroughs in NYC, Queens saw the largest increase in rent prices in August. The median asking price reached $3,427. That is up 11.1% from the same time in 2023 and 38.3% higher than the prices five years ago.
Other boroughs to have seen the largest price growth include the Bronz, where rents rose 7.8% year-over-year to $3,163, and Brooklyn, where prices increased by 5.1% to 3,790.
Wages in NYC Are Failing To Keep Up
With rent prices increasing, residents in NYC are increasingly struggling to afford housing. A market analysis from StreetEasy found that the citywide median asking rent hiked by 9% from 2022 to 2023. However, wages only increased by 1% on average last year, per the US Bureau of Labor Statistics.
StreetEasy estimated that NYC residents would need to make $139,000 annually to afford a home comfortably. For perspective, the average gross annual wage in the city is $89,000. Tech workers, who have 50% higher wages than the average worker in the city, are also unable to afford rent despite making $135,000 a year.
