What to Know
- NYC rents have increased over the years, but it turns out the rent growth has fallen disproportionately on areas with more families
- The real estate website StreetEasy reports that rents in neighborhoods where at least a quarter of the renters have children grew 5% faster
- Rents are also growing fastest in areas with higher shares of low-income residents, StreetEasy says
Rents in New York City have dramatically increased over the past years, but it turns out the rent growth has fallen disproportionately on neighborhoods with more families, as well as those with a higher share of low-income residents, according to a recent study.
The real estate website StreetEasy reports that rents in neighborhoods where at least a quarter of the renters have children grew 5 percent faster than those where less than a quarter of residents had children.
Additionally, the study saw that neighborhoods where more than a third of renters have children — like Ditmas Park, Elmhurst and University Heights — saw the rents increase the quickest.
"Rents have risen in the city, but not all New Yorkers have felt the same effects," StreetEasy Senior Economist Grant Long said. "Residents who already struggle to make ends meet and renters dealing with the high costs of childcare are predominantly living in areas that see the most dramatic rent growth. These are often residents who have little financial flexibility to begin with. As a greater share of their incomes goes towards rent, it's increasingly difficult for families to save for a down payment on a home, their children's college education, or emergencies."
Overall, rents in New York City grew 31 percent since 2010, according to the StreetEasy Rent Index, with some neighborhoods seeing rent increase by as little as 15 percent, such as in Ridgewood, Queens, and some as much as 45 percent, such as in Ditmas Park, Brooklyn.
According to the study, in neighborhoods with a median household income below New York City's 2010 median, rents grew 6 percent more than in areas with a household income above the citywide median.
Not only are rents growing fastest in areas with higher shares of renter households with children, but also in neighborhoods with higher shares of low-income residents, StreetEasy says.
In the neighborhoods with household incomes below the city's 2010 median of $50,285, rents grew by 33 percent, according to the report. However, over the same 10-year period, rents in neighborhoods with an above-median income grew by just 27 percent.
StreetEasy determined that in neighborhoods like Prospect Lefferts Gardens and Midwood, dozens of apartments now ask for rents more than 40 percent higher than at the beginning of the decade.
Additionally, the report revealed that seven of the top 10 neighborhoods with the fastest rent growth were partly downzoned over the last 20 years, which limited growth in housing. Meanwhile, three of the 10 neighborhoods with slowest rent growth — Long Island City, Dumbo, and the Upper West Side — were partly upzoned between 2007 and 2009.
According to SteetEasy’s report, four out of the top five neighborhoods with the most rent growth from 2010 to 2018 are in Brooklyn.
The top five neighborhoods with the most rent growth are: Ditmas Park, which saw rent grow 45 percent; Prospect Lefferts Garden, which also saw rent grow 45 percent; Bedford-Stuyvesant, which had a rent increase of 41 percent; and Crown Heights, Brooklyn, and Inwood, Manhattan, with a rent growth of 39 percent each.
On the other hand, the top five neighborhoods with the least rent growth during the same time period were dispersed across different boroughs.
The neighborhoods with the least rent growth are: Ridgewood, Queens, which saw a rent growth of 15 percent; Central Park South and Midtown, Manhattan, saw an increase of 16 percent; Long Island City, Queens, saw rent increase 18 percent, while Riverdale, Bronx, had its rent rise 20 percent.