NEW YORK, Aug. 27, 2018 /PRNewswire/ --
- Rents in New York City have
increased 31 percent since 2010, according to the StreetEasy Rent
Index. Some neighborhoods saw rents rise as little as 15 percent,
while rents in others rose as much as 45 percent.
- Rents in neighborhoods where at least a quarter of residents
were families with children grew 5 percent faster than
neighborhoods in which less than a quarter of residents were
families.
- In neighborhoods with a median household income below
New York City's 2010 median, rents
grew 6 percent more than in areas with a household income above the
citywide median.
- A household spending $2,000 per
month on rent in 2010 would be paying an additional $620 per month or $7,440 more per year in 2018.
Since the end of the financial crisisi, monthly rents
for New York City apartments
listed on StreetEasy increased 31 percent or $653ii, according to StreetEasy's
annual rent affordability study. While the pace of rent growth has
varied widely across neighborhoods — from 15 percent in
Ridgewood, Queens, to 45 percent in Ditmas Park,
Brooklyn — rents are growing
fastest in areas with higher shares of low-income residents and
renter households with childreniii.
Rents in neighborhoods where families make up at least 25
percent of residents grew 32 percent on average, 5 percent faster
than neighborhoods where less than one quarter of residents had
children. Manhattan neighborhoods
including Midtown, Gramercy Park, and the Financial District, where
less than 10 percent of renters have children, were among the
neighborhoods with the slowest-growing rents. Outer-borough areas
such as Ditmas Park, Elmhurst, and
University Heights, where more than a third of renters have
children, were among the neighborhoods where rents rose the
most.
Rent increases have also hit low-income households especially
hard. In the neighborhoods with household incomes below the city's
2010 median of $50,285, rents grew by
33 percent. Over the same 10-year period, rents in neighborhoods
with an above-median income grew by just 27 percent — 6 percent
slower. For a household spending $2,000 per month on rent in 2010, this 6 percent
additional growth adds up to an additional $125 per month or $1,500 per year in 2018. In neighborhoods like
Prospect Lefferts Gardens and Midwood, dozens of apartments now ask
for rents more than 40 percent higher than at the beginning of the
decade.
"Rents have risen in the city, but not all New Yorkers have felt
the same effects," says StreetEasy Senior Economist Grant Long. "Residents who already struggle to
make ends meet and renters dealing with the high costs of childcare
are predominantly living in areas that see the most dramatic rent
growth. These are often residents who have little financial
flexibility to begin with. As a greater share of their incomes goes
towards rent, it's increasingly difficult for families to save for
a down payment on a home, their children's college education, or
emergencies."
The StreetEasy study also reveals some of the impacts of zoning
changes around the city. Seven of the top 10 neighborhoods with
fastest rent growth were in part downzoned over the last two
decades, limiting growth in the supply of housing. Meanwhile, three
of the 10 neighborhoods with slowest rent growth — Long Island City, Dumbo, and the Upper West
Side — were in part upzoned between 2007 and 2009. Taken together,
these findings suggest that the zoning-related supply factors in
some areas of the city may have played a role in mitigating or
accelerating overall rent growth.
Neighborhoods With
the Most Rent Growth, 2010 - 2018
|
Neighborhood
|
Borough
|
Cumulative Rent
Growth Since 2010
|
Median Income
(2010)
|
Share Renter
Families (2010)
|
Median Asking Rent
(Jan 2018)iv
|
Ditmas
Park
|
Brooklyn
|
45%
|
$51,015
|
37%
|
$1,999
|
Prospect Lefferts
Gardens
|
Brooklyn
|
45%
|
$42,138
|
27%
|
$2,020
|
Bedford-Stuyvesant
|
Brooklyn
|
41%
|
$35,958
|
37%
|
$2,350
|
Crown
Heights
|
Brooklyn
|
39%
|
$35,874
|
35%
|
$2,300
|
Inwood
|
Manhattan
|
39%
|
$42,287
|
33%
|
$1,850
|
Hamilton
Heights
|
Manhattan
|
39%
|
$33,766
|
30%
|
$2,225
|
Midwood
|
Brooklyn
|
38%
|
$59,112
|
31%
|
$1,795
|
Flatbush
|
Brooklyn
|
38%
|
$39,045
|
38%
|
$2,000
|
Washington
Heights
|
Manhattan
|
37%
|
$37,245
|
32%
|
$2,134
|
Brighton
Beach
|
Brooklyn
|
37%
|
$32,326
|
20%
|
$2,013
|
|
|
|
|
|
|
Neighborhoods With
the Least Rent Growth, 2010 - 2018
|
Neighborhood
|
Borough
|
Cumulative Rent
Growth Since 2010
|
Median Income
(2010)
|
Share Renter
Families (2010)
|
Median Asking Rent
(Jan 2018)
|
Ridgewood
|
Queens
|
15%
|
$45,026
|
40%
|
$2,387
|
Central Park
South
|
Manhattan
|
16%
|
$120,409
|
7%
|
$7,225
|
Midtown
|
Manhattan
|
16%
|
$68,307
|
5%
|
$3,900
|
Long Island
City
|
Queens
|
18%
|
$55,278
|
30%
|
$2,828
|
Riverdale
|
Bronx
|
20%
|
$78,482
|
19%
|
$2,140
|
Midtown
South
|
Manhattan
|
20%
|
$91,698
|
6%
|
$3,554
|
Gramercy
Park
|
Manhattan
|
21%
|
$97,094
|
5%
|
$3,425
|
Upper West
Side
|
Manhattan
|
21%
|
$93,040
|
14%
|
$3,350
|
Dumbo
|
Brooklyn
|
21%
|
$90,436
|
38%
|
$4,154
|
Stuyvesant
Town/PCV
|
Manhattan
|
22%
|
$95,378
|
15%
|
$4,351
|
About StreetEasy
StreetEasy is New York
City's leading local real estate marketplace on mobile and the
web, providing accurate and comprehensive for-sale and for-rent
listings from hundreds of real estate brokerages
throughout New York City and the NYC metropolitan
area. StreetEasy adds layers of proprietary data and useful search
tools to help home shoppers and real estate professionals navigate
the complex real estate markets within the five boroughs
of New York City, as well as Northern New Jersey.
Launched in 2006, StreetEasy is based in the Flatiron
neighborhood of Manhattan. StreetEasy is owned and operated by
Zillow Group (NASDAQ: Z and ZG).
StreetEasy is a registered trademark of Zillow, Inc.
i For the purpose of this analysis, StreetEasy
examined rent growth between January
2010 and January 2018.
ii Rent growth in New York
City and the 88 neighborhoods in this analysis were
estimated using the StreetEasy Rent Index. More on the methodology
here:
https://streeteasy.com/blog/methodology-price-and-rent-indices/
iii The share of renter families and median income for
residents in each neighborhood were estimated using the U.S. Census
American Community Survey, five-year estimates.
iv Median asking rent based on active StreetEasy rental
listings in January 2018.
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SOURCE StreetEasy