Land in New York is expensive...that's not news. That's led the city to become a housing market dominated by rentals, and those rentals essentially drive people broke. A full third of New Yorkers are severely rent burdened, which means they pay over 50 percent of their incomes towards rent.
But a new report from NYU's Furman Center shows that the increasing cost of living isn't just a New York City phenomenon.
The report shows that in 2006, over 50 percent of people in only five of America's biggest 11 cities lived in rental housing. But by 2013, four other cities had joined that list (the nine cities are: Miami, Boston, Washington D.C., San Francisco, Los Angeles, Houston, Chicago, Dallas, and, of course, New York.).
The rental market is booming: the number of renters increased by 28 percent between 2006 and 2013 in Philadelphia, 25 percent in Miami, and 23 percent in Boston.
More demand for rent means less supply, which in turn means landlords can charge a buttload of money for housing. Rents rose everywhere between 2006 and 2013 – most notably in L.A. where they rose by 11 percent, and New York, where they rose by 12 percent.
But incomes haven't kept pace, making it harder for populations of growing cities to afford homes. The share of rent-burdened households increased in every city the Furman Center studied between 2006 and 2013.
That means 43 percent of moderate-income earners are severely rent-burdened in New York, 39 percent are in Miami, 38 percent are in Los Angeles, and 26 percent are in San Francisco.
The solution? Rent control and affordable housing. But the Furman Center found that even affordable housing is increasingly out of the reach of most low-income renters. And if New York Mayor Bill de Blasio's lackluster housing plan (which is still the most progressive in the nation) is any indication, it'll be a long time before renters get any relief.
[Image via; Graphic used with permission of the Furman Center]