For my project I wanted to dive into any data I could find surrounding the cost of living compared to income in NYC. This led me to compare the increase in median home value to median income level from 2000 to 2020. I originally chose to focus on my own neighborhood of Eltingville, Staten Island as I personally have seen home prices skyrocket during the pandemic with increases in wages either lagging behind or not happening at all. Even before the pandemic, I had heard of family members or friends who would have been unable to purchase a home if they had not received monetary assistance from relatives or lived at home for a few years and saved intensely. I wanted to see the reality of those who do not have these options available to them.
I set out to outline just how possible this task would be for families who wished to buy a home in several NYC neighborhoods at the median income level and compare the data from 2000 to the data from 2020.
Approximate breakdown of where your money is spent at the median income level
Starting with this breakdown we are able to see that at the median income level after accounting for taxes and expenses you will typically be left with about five percent of your income for saving or spending as you wish. This will help me visualize how much a person or family may be able to save as I looked at different neighborhoods around NYC.
Eltingville
In Eltingville, a predominantly white neighborhood, we see that the median income level increased less than 50% from ~$67,000 to ~$97,000.
However, the median home value increases over 100% from $237,300 to $543,300.
The ratio of income level to home value dropped from 28.5% to 17.9%.
Jackson Heights
My goal was then to see if there were any differences throughout the other boroughs as well as to see if more diverse neighborhoods experienced the same results.
In Jackson Heights, we see that the median income level also increases at a much lower rate than the median home value. Only increasing from ~$48,000 to ~$76,000.
However, the median home value increases almost 200% from $261,800 to $714,900.
The ratio of income level to home value drops from 18.5% to 10.7%.
Bay Ridge
In Bay Ridge, we see extremely similar statistics to Jackson Heights.
The median income levels are again increasing at a much lower rate than the median home values.
Astoria
Finally, Astoria also has similar statistics to Bay Ridge and Jackson Heights.
Overall, Eltingville has the most favorable ratios for someone looking to own their home when comparing median income levels to median home values.
The future of NYC?
Although NYC had lost more than 365,000 citizens (1.8% of the population) during the pandemic from April 2020 to July 2021, many have returned or did not move far away to begin with. There has also been a sizable migration of citizens to the outer boroughs such as Staten Island and The Bronx. There are more affordable neighborhoods in Staten Island that I can vouch for that have seen an increase in population such as Mariners Harbor, Rossville, Greenridge, and Arden Heights. Affordable neighborhoods in The Bronx that I can not speak on such as Parkchester, Bedford Park, and Fieldston have also seen increases in population.
The past few years have created a different environment for many people in terms of working arrangements and I think only time will tell how much this will affect NYC home values and income levels.
Sources
https://www.socialexplorer.com/explore
https://www.socialexplorer.com/explore-tables
https://www.amny.com/news/real-estate-prices-are-starting-to-rise-what-this-means-for-first-time-home-buyers-in-new-york-city/
https://www.silive.com/northshore/2017/12/10_reasons_staten_island_has_b.htm
https://www.washingtonpost.com/news/business/wp/2018/10/04/feature/10-years-later-how-the-housing-market-has-changed-since-the-crash/
