What to Know
- A new study by StreetEasy found that nearly 1 in 3 New Yorkers went over their budget on their home
- StreetEasy found that 37 percent of homeowners and 45 percent of millennials exceeded their budget
- Overall, New Yorkers pay 1.3 times more for housing than average Americans
The rapid rise of house costs in New York City is a reality most who live in the area are familiar with, so much so that many New Yorkers have to forgo meeting their home budget.
A new report by StreetEasy found that nearly one in three New Yorkers went over their budget on their home — most notably homeowners and millennials.
StreetEasy found that 37 percent of homeowners and 45 percent of millennials exceeded their budget. However, the study also found that, despite the rising house costs and issues with budgeting, these two groups are the most likely to be satisfied with life in the Big Apple.
Overall, New Yorkers pay 1.3 times more for housing than average Americans. Because of these high rising costs, 31 percent of New Yorkers spent more than their initial budget on their current home, according to the StreetEasy New York City Housing & Moving Trends Reports.
The study found that homeowners were more likely to overspend with 37 percent of homeowners going over their budget compared to 27 percent of renters.
The report, which surveyed 1,000 renters and homeowners living in the five boroughs, details the ways New Yorkers struggle to find an affordable home after the rapid rise in prices and rents over the last decade. According to the survey, there are great differences in how generations, homeowners, and renters tackle and perceive the high costs of housing in the city.
Most of those surveyed said that budget and the number of bedrooms are the most important factors in a home. Luxury amenities, like doormen and gyms, were ranked as the least important factors.
Regarding the most importance characteristics required of their current neighborhood, safety and access to public transportation came in on top.
The report also found a dissonance in the perception of housing costs, as 46 percent of New Yorkers perceived the city to be unaffordable, but only 16 percent said their home is unaffordable. Renters were also most likely to rate the cost of the city more negatively than homeowners.
According to StreetEasy, 67 percent of millennials and 65 percent of homeowners were likely to recommend life in New York City.
More than one third — 39 percent — of New Yorkers cite the high cost of living as a main reason why they would leave, with the desire for a bigger home and to buy a home also ranking high. More than 30 percent of New Yorkers plan to move in the next year, with 71 percent considering staying in their borough, but only 36 percent planning to stay in their neighborhood.