Jin – stock.adobe.com
New York, New York — it’s a helluva town! That’s if you can afford it.
In a city where the rent is too damn high, the thought of homeownership within the five boroughs may seem totally out of reach to many.
The latest numbers are rather sobering. In October, according to the latest Realtor.com market report, the median asking rent in the Big Apple hit $3,374 — a 1.7% year-over-year climb. Broken down by borough, The Bronx saw an October median asking rent of $3,164 — an 8.6% year-over-year boost and an increase of a staggering 54.4% over the last five years. Queens, with an October median ask of $3,343, just saw a 7% year-over-year jump in rents, and a nearly 37% surge in them over the last five years.
Manhattan, posting both annual and five-year declines, still saw its median ask hit $4,415 — requiring an annual income of $176,604 to afford it, the study notes. Perhaps it’s no surprise that Manhattan alone has a rather low homeownership rate of 25.4%.
Still, if Manhattan renters are paying this much per month for no equity — how far could that stretch to purchase a home outside of city limits? The typical city renter, according to Realtor.com, could afford a residence valued at roughly $600,000 elsewhere.
In its report, and based on its own page views, Realtor.com rounded up the top US cities where Manhattan residents — those looking to leave town entirely, or those who have flexible work arrangements — are interested in buying homes. Using its proprietary mortgage calculator, the outlet estimated the purchasing power of a typical Manhattan renter in these locations, assuming a monthly payment of $4,415 — as well as a 20% down payment and a 30-year fixed Freddie Mac mortgage with an interest rate of 6.43%. (Property taxes and home insurance costs are included.)
Not far from city limits, one of the places a Manhattan renter can afford to buy their own place is in Long Branch, New Jersey — a longtime beach destination in its own right on the Jersey Shore. There, a $624,000 home is affordable to buy on a Manhattan budget — slightly above New Jersey’s median home list price of $574,500.
Also not far from city limits, Manhattan residents surfing Realtor.com for listings are also looking at Bridgeport, Connecticut — which is off Amtrak and Metro-North train lines. There, a $646,150 home is doable for those shelling out lots per month for a Manhattan rental — a fair bit above the state’s nearly $500,000 median asking price.
Manhattan renters can also consider making a move to Florida, like many New Yorkers have done since the COVID-19 days. In West Palm Beach, a home priced at $655,500 would be affordable to a resident coming from the Big Apple. Heck, anywhere in Florida would be a dream, considering the statewide median list price, Realtor.com notes, is roughly $435,000.
Similarly, Myrtle Beach in South Carolina offers warm weather and a coastal location. Manhattan tenants preferring that over Florida can have their dollars stretch to $752,000, according to the report. Affordable for New Yorkers, but a price that’s rather expensive for the state overall. In South Carolina, Realtor.com’s numbers show, the median list price is $355,000.
Lastly, the report notes, Pittsburgh would be a worthy destination for parking some cash. There, a home priced at $599,800 would be affordable for a New Yorker paying Manhattan’s high median ask. Overall, the report adds, Pennsylvania has a median asking price of $309,900, making it overall a budget-friendly move for those looking to get out of the Big Apple.