Report: Renters in NYC must earn nearly twice the city's median income to satisfy the "30% rule"
NEW YORK -- You know the old 30% rule? No more than 30% of your income should go to rent.
Well, a new report shows just how tough it is to meet that mark in New York City. Your income needs to be about twice the city's median income.
It's not easy to find something nearly all New Yorkers agree on. But when it comes to rent, there is a consensus.
"It's crazy expensive," Manhattan renter Julia Kanauf said. "I spend more than half of my income on my rent."
"Overpriced," said Midtown East renter John Skogerboe.
"It's high," Manhattan renter Russ Schuren added.
READ MORE: Report: Manhattan rent was nearly $5,200 in February
A new report from StreetEasy says to keep housing costs below the recommended amount of 30% of your income, the average New York City renter must earn about $134,000 per year, which is almost twice the city's median household income.
"Already in New York about one-third of renters out there are spending more than 50% of income on rent," said Kenny Lee, an economist for StreetEasy.
Lee says a low inventory is leading to headaches for renters, especially since many landlords require that you do meet the 30% rule.
READ MORE: Here's the price difference between renting and owning a home
When asked if it's going to get better for renters any time soon, Lee said, "Yeah, I think that's what everyone is hoping. As the weather gets warmer, the inventory in the city usually tends to rise as more people tend to move after their rental leases lapse."
The new data says Brooklyn is the most competitive rental market right now, but the problems are affecting renters across New York City.
Anthony DiNapoli rents in Queens.
"I commute in every day, but I just cant rationalize spending $5,000 for a one-bedroom," DiNapoli said.
The report also found more would-be sellers are instead opting to rent their place out. StreetEasy says the number of new listed rentals is up compared to last spring, and new listed homes for sale are down.
