Tag: NYC rent

The Price of Being a Millennial in NYC

It’s a well-known fact that the cost of living in New York City is one of the highests in the nation. Over the past decade, the cost of living and rent prices have gone up significantly in the city. Although a costly place to live, NYC offers an abundance of career opportunities and metropolitan advantages–which is most appealing to millennials.

Creating a life for themselves in NYC has millennials spending much more than what they can afford. A recent report by StreetEasy, which survey 1,000 renters in NYC, confirms that millennials are much more likely to live outside of their means when it comes to housing in the city. The housing market in NYC is expensive and according to Grant Long, “…despite facing rising housing costs and budgeting constraints, aspirations of owning a home remain high in the city, particularly among millennials.”

All five boroughs–Manhattan, Bronx, Brooklyn, Queens and Staten Island–reported that housing in the city is more than often unaffordable. According to the stats collected by StreetEasy, each generation approaches the situation differently. The New York Business Journal states, “45% [of millennials] say they chose a more expensive home than they’d planned, compared to 30% of ‘Generation Xers’ — those born from the early 1960s to late 1970s — and 19% of baby boomers.” The majority of the older generation seem to know how to realistically budget their cost of living more effectively than millennials.

Although the housing prices of the city continue to rise, about 34% of millennials are hoping to purchase a home sooner rather than later. According to the report, the majority of renters living in NYC find housing to be very unaffordable. Perhaps owning a home is more appealing since 39% of homeowners find housing more affordable, having more freedom to buy and sell. But even owning a home does not shield residents against the struggle of rising housing prices in the city.

Other stats from StreetEasy report that “New Yorkers pay 1.3 times more for housing than average Americans”. In order to stay in the city and find decent housing, about one third of those surveyed reported spending more than their initial budget. To no surprise, 46% say that housing in the city is unaffordable–which one third say the high cost of living is their biggest reason to move.

Even with the cost of living so high, generation after generation come to New York City, hoping to capture the life and opportunities only the five boroughs can offer–no matter what the price.

Non Natives, Do They Affect NYC Rent?

The renters market in NYC fluctuates frequently and in recent years New York City real estate has skyrocketed to new heights. It’s no secret that New York has some of the highest rent in the country. Some may even see New York City as unattainable for living standards. But it wasn’t always the case. The outer boroughs and some parts of Manhattan were once havens for middle and lower class families to live comfortably and still have a familial community feel. Some of the top neighborhoods that thrive as up and coming areas were once tight communities that featured an array of ethnic groups and a myriad of economic enclaves.

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For example, Hell’s Kitchen is probably one of the most storied areas affected by a transition of residents and rent hikes. Hell’s Kitchen was once a neighborhood mainly inhabited by poor and working class Irish-American immigrants. Instances of this can be seen in movies such as Gangs of New York and Sleepers. However, with it’s close proximity to the theater district as well as its perfect location in midtown, developers saw this area as a goldmine and the neighborhood started to shift in demographics. But who’s to blame? Just like in now prominent neighborhoods in Brooklyn such as Williamsburg and Park Slope, neighborhoods that were once familial areas for working class families are now seen as luxury neighborhoods with rent that is reserved for the upper class. Gentrification has long been seen as the sole reason to these changes.

According to its definition, gentrification is the process of renewal and rebuilding accompanying the influx of middle-class or affluent people into deteriorating areas that often displaces poorer residents.That can be seen as true. Who makes up the influx of individuals responsible for gentrification? Many believe this is the cause of young professionals that come from areas outside of the “the city” or five boroughs who are simply looking for cheaper rent. Once in these individuals move into the area, it can be seen as a “potentially desirable” area which can then woo investors and developers.

Gentrification isn’t necessarily a negative thing. It can bring a much needed renewal to a deteriorating neighborhood and new revenue and resources into a community. But what shouldn’t happen is the removal of the culture of said neighborhood. The only thing that’s left of Hell Kitchen is the name with very few remnants of the old neighborhood. As a realtor, I can appreciate the rise in rates, but as a New Yorker, I will always appreciate the old New York that was full of culture and dreams.