New York City is truly like no other place in the country — at least when it comes to the cost of renting. The average price in the metro, as of June, was $4,037. That amount is a whopping 148 percent above the national average of $1,628 per month, according to data from Apartments.com. Also, NYC rents have risen by 3.1 percent over the past 12 months.
For the average renter to afford an apartment in the city, they will need to make $161,796 per year or roughly $13,483 per month, according to the marketplace.
"The general guideline is to pay no more than 30 percent of your monthly income on rent," Apartments.com wrote.
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The highest rents are located in Hudson Yards, averaging $3,939 per month. That's followed by East Harlem and Times Square, costing $3,765 and $3,606, respectively.
On average, a studio costs roughly $3,237 per month, $4,045 for a one-bedroom, $5,442 for a two-bedroom and $6,801 for a three-bedroom. The average size of an apartment is 593 square feet in NYC. Payments on houses can range anywhere from $3,005 per month to $8,866, with the cost varying between $2,771 and $8,780 per month for townhomes.
Additionally, Apartments.com said NYC's cost of living is 130.6 percent higher than the country average, with housing 400.6 percent above the median.
NYC as a whole is in a housing affordability crisis. Of the residential tenants in the metro, 58.5 percent are considered rent-burdened, according to a recent report from Lu Chen and Mary Le at Moody’s. The biggest issue is the lack of supply in the market. A 2024 study by McKinsey & Company pinpointed that NYC is short 540,000 housing units to meet the demand, according to New York nonprofit group, the Citizens Budget Commission.
To address the crisis, NYC has been approving office-to-residential conversions. Also, the City of Yes for Housing Opportunity has been implemented to amend the zoning code to loosen restrictions on residential developments. Plus, the Fairness in Apartment Rental Expenses (FARE) Act takes effect on June 11, which forbids landlords from passing broker fees on to tenants.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
