A recent study conducted by apartment listings service RentCafe has shed light on the financial struggles faced by residents of Manhattan, revealing that they allocate a significantly larger portion of their income towards rent compared to most Americans.
Manhattan's Rent Burden: Study Shows Residents Pay Big, Save Little
Among 189 metropolitan areas analyzed for median incomes, average rents, and basic necessity prices, Manhattan ranked third-to-last in terms of relative income-to-rent ratio, with Brooklyn closely following in fourth-to-last position.
The findings unveiled by RentCafe indicate that living in New York City demands a hefty chunk of one's earnings, surpassing the rent burden experienced in nearly all other cities across the United States. Researchers calculated an income-to-rent ratio for each city, showcasing the disparity between monthly income and rental costs.
After deducting rent, the remaining disposable income leaves New Yorkers with minimal resources to cover other essential expenses such as utilities, food, healthcare, transportation, and goods and services.
Among 189 metropolitan areas analyzed for median incomes, average rents, and basic necessity prices, Manhattan ranked third-to-last in terms of relative income-to-rent ratio, with Brooklyn closely following in fourth-to-last position. The persisting affordable housing crisis in New York City has exacerbated the financial strain on its residents, with no signs of improvement in sight.
Only Boston and Auburn, Alabama fared worse than Manhattan, with Auburn securing the last spot across all other income ratios measured, including income to utilities, food, and healthcare.
On the flip side, the study highlighted California's Sunnyvale as the U.S. city where paychecks stretch the farthest. "Renters can get the most out of their income in Silicon Valley’s Sunnyvale, where the highest median wages in the nation make it easier to cover living expenses," explained the report.
Following Sunnyvale, the Phoenix suburb of Surprise claimed the second spot, while the Arlington, Virginia suburb of Washington, DC, secured third place. Notably, cities in the southeastern region of the country generally ranked higher, comprising nine out of RentCafe's top 30 cities, outnumbering other regions.
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