New York City Rents: Minimum-Wage Workers Must Clock 106 Hours a Week To Afford Manhattan
There’s an old adage about what to say when a tourist asks for directions to New York’s Carnegie Hall—the answer is “practice, practice, practice.”
For New Yorkers wondering how to afford the median rent—which hit $3,362 in Manhattan, Queens, the Bronx, and Brooklyn in November—the answer is “work, work, work.”
A minimum-wage earner must work up to an eye-watering 106 hours a week to afford living in Manhattan, according to the new Realtor.com New York City Rental Report. The outer boroughs were only slightly more forgiving.
Brooklyn demands minimum wage-earning renters work 89 hours, while Queens clocks in at 80 hours. The Bronx is the most minimum-wage worker-friendly borough—at 75 hours. The hours are based on renters spending 30% of their budget on housing, the standard measure of affordability.
And that double time, compared to a typical work week, is based on two people splitting the rent evenly for the average apartment.
“Living in New York City presents a significant challenge for minimum-wage earners,” says Realtor.com economist Jiayi Xu.
New York City’s high threshold
The Big Apple’s median rent is up $85 from a year ago, pushing it to nearly double the national median of $1,703 and one of the few major cities where prices are still climbing.
While salaries in New York City tend to be higher than the national average, they still fall short of covering the steep rents for many residents.
“To afford a typical rental unit at the current minimum wage without exceeding a standard 40-hour workweek, a renter would need to share the cost with three other people,” says Xu.
To arrive at the data, Realtor.com analyzed how many hours per week a renter would need to work at New York City’s minimum-wage rates ($16 per hour) to afford a typical rental.
Unfortunately, the situation will unlikely improve significantly even with the scheduled minimum-wage increase to $16.50 per hour in 2025.
“The minimum wage would need to rise to $32.33 per hour—more than double the current rate—for a worker to afford a typical rental with just one additional roommate,” says Xu. “This underscores the severity of the rental affordability crisis facing low-income groups in NYC.”
Manhattan
Though still expensive, Manhattan’s sky-high rental market is cooling, in stark contrast to its more affordable boroughs where rents are heading north.
In November 2024, the median asking rent for an apartment in Manhattan was $4,395, down $5 or -0.1% from the previous year.
“It marked the 17th consecutive month of annual declines, with rent dropping by $206 (-4.5%) compared to its prepandemic level and $456 (-9.4%) lower than its peak,” notes Xu.
This dip points to a shift away from the city that never sleeps, with renters favoring boroughs where their dollar stretches further.
To afford renting a typical home in Manhattan without spending more than 30% of income on housing, “a gross household income of $14,650 per month, or $175,800 per year, is required,” says Xu.
Queens
So what borough is overtaking Manhattan in terms of renter desirability? That would be Queens, aka “The World’s Borough,” which saw the fastest annual rental growth in New York City.
“The median asking rent reached $3,333, up $263 or 8.6% higher than the same time last year and was $942 (39.4%) higher than five years ago,” says Xu.
With its thriving cultural scene, tree-lined streets, and proximity to midtown Manhattan, Queens continues to attract renters looking for affordability and convenience.
Renters in Queens must earn a gross monthly household income of $11,110 or an annual income of $133,320 to afford to rent without spending more than 30% of their income on housing.
Brooklyn
Brooklyn followed Queens with the second-highest rent increases, though with a more modest rent increase.
“The median asking rent increased by 1.7% or $61 annually to $3,694 from a year ago and was $1,001 (37.2%) higher than five years ago,” says Xu.
Known for its blend of luxury and charm, Brooklyn’s housing market continues to demand significant income from renters—$147,756 a year.
The Bronx
The home of the Yankees remains the most affordable borough for renters, but the consistent rise in rents still poses challenges for residents.
“The median asking rent increased by 6.5% or $190 to $3,114 from a year ago and was $1,025 (49.1%) higher than five years ago,” says Xu.
Bronx renters must earn a gross monthly household income of $10,380 or an annual income of $124,560.
Smaller units are stealing the spotlight
Looking back over the past five years, the shifts in rent trends are striking.
The median asking rent for 0-2 bedroom apartments has soared 16.3%, while rents for three-plus bedrooms have increased by a more modest 4.6%.
It’s clear that the demand for smaller, more affordable options is driving this trend.
“The median asking rent for 0-2 bedrooms in NYC was $3,308, reflecting an increase of $144 or 4.6% from the previous year,” says Xu, “While rent for three-plus bedroom units declined by $355 or 7.3% compared to November 2023, reaching $4,530.”
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