Report Examines Home-Buying Potential in NYC for Households at Various Income Levels
A report released today by the NYU Furman Center and Citi, titled, NYU Furman Center / Citi Report on Homeownership & Opportunity in New York City, analyzes recent home sales data and examines the potential purchasing power of households at various income levels in New York City, as well as the nearby counties of Nassau, Suffolk, and Westchester.
The study finds that the purchasing power of most New York City households is extremely limited. While roughly half of the city’s households (51%) earn $55,000 or less annually, they could afford just 9% of 2014 home sales. Even households earning up to $114,000 annually could only afford 42% of home sales in New York City. Only 22% of the city’s population earned upwards of $114,000 in 2014.
The study also highlights unique elements of New York City’s homeownership market. In New York City, just one-third of households own their home, which is the inverse of the U.S. homeownership rate of roughly 66%. But while New York City had a relatively low share of homeowners compared to the U.S. in 2014, it was disproportionately low for households earning up to $55,000.
According to the study, moving out of New York City to the nearby NY suburbs does not necessarily improve a New York City household’s home-buying prospects. Westchester County had an even smaller share of affordable home-buying options than New York City; there, only 2% of 2014 sales were affordable to households earning up to $55,000 annually. These same households could afford only about 25% of 2014 sales in Nassau County and 43% of 2014 sales in Suffolk County.
Key Findings: Read a summary of key findings
Webinar Briefing: NYU Furman Center researchers will present findings from the NYU Furman Center / Citi Report on Homeownership & Opportunity in New York City on Friday, September 9th from 1:00-2:00 p.m. EDT. Register >>