A new report confirms what most New Yorkers already feel: 62% of New York City residents cannot afford to live here based on their current income relative to housing costs. The data comes from an analysis of median household incomes versus median rent and homeownership costs across the five boroughs, and the numbers are worse in some neighborhoods than others.
What Does “Cannot Afford to Live Here” Actually Mean?
The standard affordability benchmark is that housing costs should not exceed 30% of gross household income. When a household spends more than that on rent or mortgage payments, property taxes, and insurance, they are considered “cost-burdened” by federal housing standards.
In New York City, 62% of residents now exceed that threshold. That includes renters paying $2,500 to $3,500 per month for one-bedroom apartments and homeowners dealing with property tax bills, insurance premiums, and mortgage rates in the mid-6% range. The affordability crisis is not limited to one group. It hits renters, first-time buyers, and long-time homeowners alike.
How Bad Is It on Staten Island?
Staten Island has long been considered the “affordable” borough, but that label is becoming harder to justify. The median home price on Staten Island has climbed significantly over the past three years, and property taxes on the island are among the highest effective rates in the city. When you combine a mortgage at current rates with Staten Island’s property tax burden, homeownership costs have outpaced income growth for many families.
For renters on Staten Island, the situation has tightened as well. Rents in neighborhoods like St. George, Stapleton, and even parts of the South Shore have increased as demand has grown and inventory has stayed limited.
Brooklyn Is Even More Squeezed
Brooklyn’s affordability gap is among the worst in the city. The median home sale price in Brooklyn has been above $800,000 for multiple quarters, and neighborhoods like Park Slope, Carroll Gardens, and Brooklyn Heights regularly see closings above $1 million for condos and co-ops. Even in more affordable areas like East New York, Canarsie, and Bay Ridge, prices have risen faster than local incomes.
For Brooklyn renters, the median asking rent is now above $3,000 per month. A household needs to earn roughly $120,000 per year just to meet the 30% affordability threshold at that rent level. The median household income in Brooklyn is well below that.
Why the City Finally Admitted It
City officials have historically downplayed the affordability crisis or pointed to new housing construction as evidence of progress. This report is notable because it represents an official acknowledgment that the majority of residents are struggling with housing costs. That admission matters because it sets the stage for policy action, whether that means expanding tax relief programs, accelerating new housing construction, or reforming the property tax system.
For homeowners, the city’s acknowledgment could lead to expanded programs like property tax abatements, STAR exemptions, or new incentives for homeowners who add accessory dwelling units. For renters, it strengthens the case for rent stabilization protections and voucher programs.
What Homeowners and Buyers Should Do Right Now
If you own a home on Staten Island or in Brooklyn, make sure you are claiming every tax break available to you. Many homeowners miss the STAR exemption, the Enhanced STAR for seniors, co-op and condo abatements, and veteran exemptions. These programs can save hundreds to thousands of dollars per year.
If you are looking to buy, the affordability data is actually useful context. It means there is political pressure to create more programs that help first-time buyers, and it means the city is likely to continue investing in housing supply. Timing a purchase when rates eventually come down, combined with city incentive programs, could create a better entry point than waiting for prices to drop (which the data suggests is unlikely given supply constraints).
Watch the Full Episode
Joseph Ranola covers the full affordability report in today’s Daily Tesla News, including the borough-by-borough breakdown and what it means for anyone thinking about buying, selling, or staying put. Watch on YouTube or browse all episodes at ranolarealestate.com/daily-tesla-news.
About Joseph Ranola
Joseph Ranola is a licensed real estate agent with The Bridge and Boro Team at Real Broker, covering Staten Island and Brooklyn. With over 70+ five-star Google reviews, Joseph helps homeowners, buyers, and investors navigate New York City real estate with clear, no-nonsense guidance. Whether you are buying your first home, selling a property, or trying to understand how city policy affects your investment, Joseph is the agent who actually explains what is going on.
Thinking about buying or selling in Staten Island or Brooklyn? Reach out to Joseph directly or call (917) 905-2541.
