We’re number two!
Previously labeled the least affordable housing market in the U.S., New York City now stands as the second-least affordable this month, having been beaten out by Miami, Florida.
According to the RealityHop Housing Affordability Index, home prices in Miami have risen since last year. In February, the city finally made its way up to take New York City’s place as the least affordable housing market in the country. In Miami, households would need to contribute an average of 78.71% of their income towards homeownership costs.
After ranking first for seven consecutive months, New York City is not far behind Miami in costs. RealityHop calculated that based on a projected median household income of $68,259 and median asking price of $970,000, a New York City household would need to spend 77.98% of their income to cover mortgage payments and property taxes.
The RealityHop database contains over 300,000 listings used to calculate median home prices. They analyze both proprietary and American Community Survey Census data to provide an index of housing affordability and homeownership burden across the 100 most populous cities in the country.
During the COVID-19 pandemic, lack of access to income data and issues concerning ACS data collection forced RealityHop to adjust the affordability index methodology. However, the Bureau of Economic Analysis proves that the calculations represent a realistic estimate of the American Housing Market.
Affordable housing has been an issue among the middle and low classes that reside in New York City. New York City Housing Authority accounts for over half of all homes affordable to those in the “extremely low income,” which is at or below 30 percent of the area’s median income. As the largest public housing system in North America, NYCHA’s attempts to solve this problem are widely influential. Unfortunately, their efforts, such as hiring private managers to improve the quality of public housing, have done little to solve the issue.
On the other hand, actions towards more affordable housing have been made that may have contributed to its slight increase in affordability.
In January, Mayor Eric Adams appointed members to lead his administration’s affordable housing strategy. If successful, Adams’ new plan would help the city build housing and reduce costs.
The newly appointed team will work to create a new housing supply across the five boroughs, legalize basement apartment dwellings and convert underused hotels and office buildings into affordable housing.
“As a lifelong advocate for safe, affordable housing, I’m grateful to Mayor Adams and incredibly honored to be leading his housing agenda,” said Chief Housing Officer Jessica Katz. “From expanding our housing supply across the city to ensuring families have easier access to stable homes and finally fixing NYCHA with resident voices at the center of the conversation, there’s a lot to do. It is our responsibility to ensure all New Yorkers have an affordable place to live, and I’m ready to get to work, fighting to achieve this for every one of our neighbors.”