Not even workers making $135,000 can afford NYC rent, new study finds

The average annual wage in New York City is no longer keeping up with the rising costs of living and monthly rent, which is squeezing out workers even in typically more lucrative careers like technology, according to a new report.

Residents are constrained when searching for the limited number of rentals on the market, and soaring prices just add salt to the wound. The citywide median asking rent hiked to $3,474, up nearly 9% from 2022 to 2023, based on a StreetEasy market analysis.

Wages in the city only went up 1% on average in 2023, according to the U.S. Bureau of Labor Statistics, and the average gross annual wage was almost $89,000, the New York State Department of Labor finds.

New York is not alone in facing a rent versus wage gap. Forty-four of the largest U.S. metro areas are experiencing a similar phenomenon, based on Zillow and StreetEasy data.

StreetEasy estimates it would take an annual income of $139,000 to comfortably afford the median asking NYC rent, including the upfront costs when finding the next lease, which is an average of $10,454 for New Yorkers.

The report finds that tech workers, like those in computer or mathematical occupations, make about $135,000 on average — over 50% higher than the average for all workers in the city. However, at that salary, workers would still only be able to afford one in three rentals on the market last year.

This comes after a citywide boost in the tech sector from 2012 to 2021, adding to a quarter of total NYC job growth, says Tech:NYC.

In comparison to the tech world, essential workers, like healthcare support or protective services, were paid average wages under $70,000 in 2023, says the state's Department of Labor.

Rising costs may play a greater role in population shifts over the last year. According to the U.S. Census Bureau, New York City lost almost 1% of residents, the highest negative shift seen across the tri-state area.

The StreetEasy summary presents a few solutions to the wage and rental woes facing the boroughs, including zoning changes in targeted outer ZIP codes near public transportation.

The report suggests over a million more homes could be built if zoning allowances were to be expanded, with East New York, Flushing, Woodhaven and Astoria being top neighborhoods to try.

The analysis also recommends not requiring new developments to have off-street parking. Current zoning rules demand all new buildings to provide a minimum number of parking spots, except for affordable housing near public transit.