In April, the median New York City rent for a one-bedroom home was $3,995 (€3,764), a record 38% increase from 2021. Douglas Ellimanan American real estate brokerage company, and set prices above pre-pandemic levels.
According to Quartz, in New York City, landlords commonly apply a rule known as the “40x” to assess the economic opportunity of potential tenants. In practice, this means that for a tenant to be economically able to rent a house, they must have an annual income of 40 times the rent. Indeed, at the current average rental rates for T1, the tenant will have to have an income in the region of 160 thousand dollars (more precisely, 159,800 dollars, or 150,560 euros).
These figures are comparable to New York’s median income of $67,046 (63,000 euros) between 2016 and 2020, less than half the value that would fit the 40x rule.
The situation becomes especially critical in the city, where two-thirds of the population rents housing and only one-third owns it, which is twice the average Russian percentage of renters.
The problem is exacerbated in the summer, as more people move to the city at this time, namely students and families with children, who use the vacation months to move.
The April home dispute even meant that one in five completed space offers allowed owners to get 11% more than the price they were asking when a year ago those same owners waived a bond month to be able to have tenants.
There are several explanations for the increase in mean T1. Or maybe it’s better to talk about theories, as Quartz says. One has to do with the separation of couples who were forced to live together 24/24 during the pandemic. When parting, most often they are looking for exactly the type of house T1.
Another reason given is the return to the office at large companies such as investment banks, which has led people working there to look for a house and be willing to pay more for apartments, assuming part of the day will be spent at home. in hybrid mode. Adding to these two reasons is the distortion caused by Airbnb rentals.
