New York, New York – It's a very remarkable city! That is if you can afford it.
In a city where rent is so high, the idea of homeownership within the five boroughs may seem completely out of reach for many.
The latest numbers are somewhat alarming. In October, according to Realtor.com's latest market report, the average asking rent in the Big Apple was $3,374 — a 1.7% increase year over year. Broken down by area, The Bronx saw an average October asking rent of $3,164 — an 8.6% increase year over year and a staggering 54.4% increase over the past five years. The Queens borough, where the average October asking is $3,343, has seen a 7% year-over-year jump in rents, rising nearly 37% over the past five years.
The study notes that Manhattan, which has posted annual and five-year declines, still saw its average demand reach $4,415 — requiring an annual income of $176,604 to afford it. Perhaps not surprisingly, the homeownership rate in Manhattan alone is a fairly low 25.4%.
However, if renters in Manhattan are paying that much monthly with no equity – how far can that extend to buy a home outside the city limits? The typical renter in the city, according to Realtor.com, can afford about $600,000 worth of housing elsewhere.
In its report, and based on its page views, Realtor.com compiled the top U.S. cities where Manhattanites — those looking to leave the city entirely, or those with flexible work arrangements — are interested in buying homes. Using its mortgage calculator, the outlet estimated the purchasing power of a typical Manhattan renter in these locations, assuming a monthly payment of $4,415 — plus a 20% down payment and a 30-year Freddie Mac-style fixed mortgage at an interest rate of 20%. 6.43%. (Property taxes and home insurance costs are included.)
Not far from the city limits, one place a Manhattan renter can buy their own condo is in Long Branch, New Jersey — a longtime beach destination in its own right on the Jersey Shore. There, a $624,000 home can be purchased on a Manhattan budget — slightly higher than New Jersey's median home list price of $574,500.
It's also not far from the city limits, and Manhattanites browsing Realtor.com for real estate listings are also looking for Bridgeport, Connecticut — which is located just off the Amtrak and Metro-North train lines. There, a home can be purchased for $646,150 for those renting lots per month to rent in Manhattan — slightly higher than the state's median asking price of about $500,000.
Manhattan renters could also consider moving to Florida, as many New Yorkers have done since the days of COVID-19. In West Palm Beach, a home priced at $655,500 would be affordable for a resident coming from the Big Apple. Heck, any place in Florida would be a dream, considering that the median list price statewide, as Realtor.com notes, is about $435,000.
Likewise, Myrtle Beach in South Carolina offers warm weather and a coastal location. According to the report, renters in Manhattan who prefer it to Florida can make up to $752,000. Affordable for New Yorkers, but somewhat expensive for the state overall. In South Carolina, Realtor.com numbers show the median list price is $355,000.
Finally, the report suggests that Pittsburgh would be a good destination to park some cash. There, the $599,800 home will be affordable for New Yorkers paying the high Manhattan median asking price. Overall, the average asking price in Pennsylvania is $309,900, making it a generally budget-friendly move for those looking to break out of the world of the Big Apple, the report adds.
