People come to New York City from all over the country, lured by the promise of success, money, or adventure. But they’d better have more than a few bucks in their pocket, because the median rent in the Big Apple currently hovers at $3,419 a month.
That’s according to a new report by Realtor.com®, which estimates not only how much money you’ll need for an apartment here, but also the minimum income required to swing that rental—which, if you go by the 30% rule where you spend no more than this amount on housing, would total $178,840 in Manhattan (less in other boroughs).
So who has that kind of cash to cough up in rent?
The report found that the majority (57.5%) of home shoppers browsing New York City listings on Realtor.com were generated locally—in other words, they’re New Yorkers looking to move from one rental to another. However, the next highest share of property views (34.7%) were from people out of state. Only a small percentage (7.8%) of viewers came from other places throughout the state of New York.
(Realtor.com)
The top three states checking out Big Apple real estate were New Jersey (15.1%), Florida (12.7%), and California (9.4%).
New Jersey takes the top spot likely because of its proximity to the city. A train trip between the two is about 20 minutes, so it makes sense that New Jersey dwellers might be curious about what life is like on the other side of the Hudson River.
“Migration patterns from surrounding states such as New Jersey, Pennsylvania, and Connecticut are often due to proximity and job opportunities,” explains Karen Kostiw of Coldwell Banker Warburg. “There are many companies such as Citibank and J.P. Morgan Chase that are requiring employees to come into the office full time.”
Interestingly, Florida—where New Yorkers migrated to in droves during the COVID-19 pandemic—comes in second. The two states have always had a symbiotic relationship, with many New Yorkers “snowbirding” in the Sunshine State during harsh northern winters.
But Floridians checking out New York City real estate also jibes with recent research that shows that Florida residents are fleeing to New York. In August, only Georgia beat the Big Apple in terms of where Floridians were relocating.
Extreme weather, soaring home insurance premiums (or being unable to get home insurance at all), and the rising condo costs associated with the Surfside condo collapse are all helping to push residents out of the Sunshine State. Those selling their home might be opting to rent for a while in the city and let someone else take care of the maintenance.
Californians come in third for those contemplating a move to Gotham. Reasons Californians are leaving the state run the gamut from increased extreme weather and wildfires, to politics, to upticks in crime and quality of life issues in some areas.
“Recently, the majority of buyers and renters we’ve been working with have come from California, particularly those seeking pieds-à-terre,” says Jessica Chestler of Douglas Elliman. “While we do see interest from other states, there has been a notable influx of Californian buyers over the past few years. Many are drawn to the vibrant lifestyle New York City offers—less driving, more walkable neighborhoods, cultural activities, and the theater scene. We’re also seeing others relocate for career opportunities and to be closer to the city’s dynamic business environment.”
(Realtor.com)
“Despite the rise of remote work, New York City remains a major hub for business, attracting both affluent empty nesters and ambitious young professionals eager to be where the action is,” adds Ben Jacobs of Douglas Elliman. “Recently, we rented an apartment to a couple based full time in Miami who frequently travel to the city for work. With many large corporations maintaining their headquarters here, interest in securing more permanent residences in New York continues to grow.”
Here are the other top states where homebuyers are browsing New York City listings:
- Texas (7.5%)
- Pennsylvania (5.8%)
- Massachusetts (5%)
- Virginia (4.1%)
- Connecticut (3.8%)
- Illinois (3.7%)
- Georgia (3.3%)
Why New York City rent is still rising
In the past, anyone with a few dollars and a lot of chutzpah could make their way to the Big Apple and chase their dreams. But these days, it takes a lot more cash.
In contrast to the overall rent declines seen across the top 50 markets, the median asking rent in New York City continues to rise annually, increasing by $90, or 2.7%, compared with a year ago.
The median asking rent for 0-2 bedrooms in the city was $3,354, reflecting an increase of $141, or 4.4%, from the previous year. Rent for 3-plus bedroom units declined by $296, or 5.7%, compared with September 2023, reaching $4,866, but it’s hardly a bargain.
Brooklyn was a bit cheaper, with a median asking rent of $3,695; it was followed by Queens, at $3,353, and the Bronx, at $3,106. Only Manhattan has seen a dip in rents by 7.7% over five years. The other three boroughs saw double-digit increases, with the Bronx being an astonishing 54.2% more expensive than five years ago.
However, says real estate agent Sonia Bendt, of Berkshire Hathaway HomeServices New York Properties, “I am finding young renters despite the high rental prices want to be where the action is.
“It is a city that attracts young professionals because of job opportunities, culture, entertainment, and social activities,” continues Bendt. “They will give up a nice place somewhere else at half the price for a walk-up or smaller rental just to be living in the city that never sleeps.”
(Realtor.com)
(Realtor.com)
