Updated 7:55 AM PT – Friday, August 12, 2022
New York City is one of the most expensive markets worldwide. Due to surging housing costs, high taxes and the negative effects of COVID-lockdowns, a rising number of New York residents are fleeing the Big Apple.
When COVID-19 hit New York in early 2020, the mass exodus of people from the city led landlords to offer tenants months of free rent to persuade residents to stay. Now, as the housing market recovers from the lockdowns nearly three years later, the residential rents are hitting new record highs every month. New York rents set records in the second quarter, which stressed out apartment owners throughout the city. Some residents have reported that their monthly rent has jumped from $1,800 to $2,500 a month.
The US Department of Housing and Urban Development characterizes spending more than 30 percent of income as rent burdened and more than 50 percent as severely rent burdened. Economist Kenny Lee spoke on the topic.
“… As we look into the second half of this year, the renters are really being squeezed out due to very low inventory, even though month-over-month basis the inventory has been rising steadily,” said Lee. “So, we looked into the data to really find out what’s going on, and we realized that a lot of renters are being priced out of their own home as the landlords seek to reverse the deals they offered during 2020 and 2021.”
Housing policy solutions to restrict rent to increase in market-rate apartments have struggled to gain traction among New York lawmakers.
California has also experienced a mass exodus because of its severe housing crisis. Legislature has attempted to combat this by allowing multiple homes on previously single-family lots and by also increasing block rent in buildings that are over 15 years old.
Additionally, a poll released this month by Zogby showed that nearly four of every ten New Yorkers are thinking of relocating because of the high taxes.