If you can’t afford your rent in New York City, join the club.
According to a study by the NYU Furman Center for Real Estate and Urban Policy, when home prices fell by 20% between 2007 and 2011, rent prices jumped by 8.6% to an average of $US1,191.
That’s not exactly news. Everyone expected the rental market to get inundated as ex-homeowners flocked to downsize and young people put off homeownership during the recession.
But what also happened, most unfortunately, was that the average income of New Yorkers dropped 6.8%.
Since two-thirds of New Yorkers rent their homes, this is no small statistic.
In 2011, almost one-third of New York residents were severely rent burdened, meaning they spent more than 50% of their income on rent, according to the study.
Still, we are a resilient bunch. New York actually saw population growth throughout the recession, and the city still has one of the lowest rental vacancy rates in the U.S.