In the recent report by StreetEasy, it was found that a household income of at least $211,970 is necessary to purchase a median-priced home in New York City. This figure starkly contrasts with the national market, where the average required salary is significantly lower, indicating a high financial barrier for prospective buyers in NYC. The city’s median asking price is $1.05 million, over three times the nationwide average, illustrating the severe real estate disparity.
The salary needed to afford a home in New York City has surprisingly decreased recently due to a drop in mortgage rates. Prior to this decline, the necessary income was over $222,000. Keeping in mind the calculations based on a 6.5% 30-year mortgage and a 20% down payment, the changing rates have allowed for a slightly larger income bracket for prospective homebuyers, although the overall demand remains high.
When examining the boroughs, Manhattan tops the list with the highest necessary salary at $308,449, with Brooklyn following at $212,375. In contrast, The Bronx requires only $73,826, making it the sole borough where a six-figure income isn't necessary. This stark income disparity among boroughs represents significant hurdles for many New Yorkers hoping to purchase property, as only 15% of households in the city earn above $200,000.
The analysis also looked at the lower third of the market, specifically homes costing less than $730,000. In this category, potential buyers still need substantial incomes, with figures showing $110,233 for Manhattan and $116,705 for Staten Island. This emphasizes a persistent challenge for even those seeking more affordable options in NYC, as the necessary income remains out of reach for a considerable proportion of the population.
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