How much you need to make to afford a home in NYC
Rental guarantor
If you've ever rented an apartment in New York City, then you know, it is a very stressful process. Once you finally think you've found the place, the next hurdle is making sure you earn 40 times the rent. FOX 5 NY's Duarte Geraldino is digging into this housing requirement and the option is now available for New Yorkers who don't meet it.
NEW YORK CITY - If you're looking to buy a home in New York City, this could be your moment!
Thanks to falling asking prices, the income needed to afford a home in the city has declined by over $30,000, according to a StreetEasy report. However, the income required is still three times higher than the national average.
The report suggests that median asking prices might have peaked, with rising inventory and declining mortgage rates potentially benefiting buyers.
The big question, though, is how much it truly costs to purchase a home in the nation’s priciest city.
Many NYC homes below the median still require a six-figure combined household income.
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How much does it take to buy in NYC?
To determine the cost of buying a home in NYC, the report analyzed median asking prices for both the entire market and the lowest third, based on StreetEasy listings from July 2024.
The report calculated the income needed to keep monthly mortgage payments within 30% of gross income, assuming a 20% down payment and a 6.5% 30-year mortgage rate, which is the average as of August 2024.
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A new study by Consumer Affairs has figured out the minimum annual income required for a family of four to be considered middle class in NY, NJ and CT.
To afford a median-priced home in the bottom third of the market, a buyer needs nearly $95,000 annually, covering about 39% of NYC households.
The current minimum income of $211,970 for a typical buyer with a mortgage in NYC is $10,625 lower than a year ago.
*Lower third of NYC market as of Aug. 2024 included homes priced below $730,000. (Source: StreetEasy data )
Best places to buy a home in NYC
Brooklyn, the city’s most competitive market according to StreetEasy, has seen some relief with lower mortgage rates. Buyers can now afford a home with $1,857 less income than a year ago.
Manhattan has seen the biggest drop, with buyers needing $33,593 less income due to falling prices, though it still requires at least $308,449 to buy a median-priced home.