By: Meyer Wolfsheim

Living in New York City offers an unparalleled experience, but affording rent here requires more than just an average income. As of July, the median asking rent in the city climbed to $3,421, reflecting a 2.2% increase from the same period last year, according to a report by Realtor.com. This rise stands in contrast to the national trend, where rents have been declining.

Despite seeing steep rent declines during the COVID-19 pandemic, NYC rents rebounded to pre-pandemic levels by spring 2022 and have continued to rise since then. The median rent in July was $413 higher than in 2019, representing a 13.7% increase, according to Realtor.com economist Jiayi Xu.

In Manhattan, the most expensive borough, the median rent fell to $4,489 in July, down 2% from the previous year. This decline marks the 13th consecutive month of year-over-year rent decreases in Manhattan, a rare occurrence in the city’s rental market. However, Manhattan’s median rent remains $171 above pre-pandemic levels, indicating a continued, albeit reduced, demand for the borough’s priciest apartments.

To afford a typical Manhattan apartment without spending more than 30% of your income on rent and utilities, a household needs an annual income of $179,560. This figure is nearly $105,000 higher than the median U.S. household income of $74,580 in 2022, highlighting the financial challenge of renting in Manhattan.

While Manhattan rents have softened, outer boroughs like Queens, the Bronx, and Brooklyn have seen significant rent increases. As NY Post reports, these areas are experiencing stronger demand, driven by renters seeking more affordable options as Manhattan becomes increasingly unaffordable.

Queens experienced the most dramatic rent hike, with prices rising 8.2% to a median of $3,380 in July. This marks a $256 increase from the previous year and the highest rent level ever recorded in the borough. Compared to 2019, Queens rents have jumped by 40.1%, meaning renters are paying $967 more each month than they were five years ago. To rent a typical apartment in Queens without exceeding the 30% income threshold, a household needs an annual income of $135,200.

In the Bronx, rents have soared by 60.9% over the past five years. The median rent reached $3,175 in July, a 7.7% increase from the previous year, adding $226 to renters’ monthly costs. To afford a typical apartment in the Bronx, a household must earn $127,000 annually.

Brooklyn also saw rent increases, with the median rent rising 3.5% year-over-year to $3,718 in July. This marks the highest rent level ever recorded in Brooklyn, with prices up $916 (32.7%) since 2019. To afford rent in Brooklyn, a household needs a gross income of $148,720 per year.

Despite the overall rise in rents, smaller apartments are still in high demand. The median rent for studios, one-bedroom, and two-bedroom units averaged $3,322 in July, up 2.2% from the previous year. Conversely, larger units with three or more bedrooms saw a decline, with the median rent falling 5% year-over-year to $4,996.

As the rental market tightens, more residents are prioritizing affordability, driving them to explore cheaper options outside of Manhattan.