The cost to rent in New York City is so high that folks can make it financially feasible to transition to homeownership in a nearby city.
In the third quarter, median rents in the metro accelerated by 5.4 percent year-over-year to hit $3,599, according to a report from Realtor. The momentum continues in the post-pandemic world, with NYC rents now up 20.2 percent from 2019.
If you live in the Big Apple, it might seem like there's no other option but to stay and accept the high cost of living. However, Realtor lays out another option: those paying NYC median rents can actually afford to buy a home that's priced between $400,000 and $690,000. In fact, there are at least five other markets in proximity to NYC that are available in that range.
The cheapest one Realtor lists is Yonkers, New York, about 11miles from the Bronx. Yonkers' median home price is $421,000.
The next cheapest is Tom's River, New Jersey — which is a little farther — about 70 miles away or so from Manhattan. There, the median price of a home sits at $455,000. The rest of the regions are all in New Jersey as well. Brick ranks as the third most affordable, coming in at $546,000, followed by Freehold ($614,000). And while the priciest on the list at $685,000, Jersey City — it does offer a friendly distance to Manhattan — just several miles away.
Another option, as pointed out by Danielle Hale, chief economist at Realtor, is to "relocate to more affordable cities such as Philadelphia or Orlando, where their monthly budget would stretch significantly further." Those markets just average $286,000 and $391,000 for the median home.
By NYC borough, Brooklyn saw the largest year-over-year rent growth at 6.8 percent in the third quarter, followed by Manhattan at six percent and the Bronx at 4.9 percent.
"Even as wage growth has picked up, rent affordability remains a persistent challenge for many New Yorkers," Hale noted.
"That's why we're seeing continued interest in nearby suburbs and in more affordable metros nationwide, places where renters can channel their monthly payments into long-term homeownership."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.