Cost of Living in NYC Jumps

The Bureau of Labor Statistics gives the official news of what many had suspected: NYC's consumer price index jumped 0.9% this month! Okay, maybe we weren't suspecting there would be an almost 1% rise (which is a big deal), but given the hoo-ha about gas prices, it is going to be more expensive to live in the city. AM New York outlines the situation from what BLS regional commissioner Michael Dolfman says, and here's our paraphrase:

- Interest rates drive price of rental apartments up
- Higher interest rates also mean less people will buy apartments (because of mortgages), so they will need to rent instead
- Rise in gas prices drives up construction costs...so fewer rental developments are being built

And it doesn't seem like the CPI will drop any time soon. Another interesting reminder: Federal guidelines recommend that rent money should be 30% of household income, but in NYC, the Metropolitan Council on Housing says that more than 25% of people spend half their income on rent. Yeah, it's depressing - can we apply for federal subsidies? Or better yet, state subsidies, considering how much of city taxes go upstate?

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By Jen Chung in News on May 18, 2006 11:52 AM

Comments [rss]

will

renter: actually a lot of people -don't- know that. what you can do until 2011: move, or stop whining. people choose to live here for a reason and its either worth the sacrifices to stay here, or it isn't.

its not like anyone deserves a medal because they can't make their rent or spend a ridiculous amount money on their apartment. etc.etc.

nycer

Thank you, Glenn (and Jen) for making a good point about gas prices being reflected in costs passed on to NYC residents via food, rent, etc. So many NYers say things like "Well gas prices don't affect me because I don't own a car!" Which is just not accurate.

Glenn

NYers can afford higher proportions of their budget going to housing because they don't need to own a car to get around. A metrocard is much cheaper by far.

And while we don't pay for gas every week at the pump like most Americans, the price of gas is included in all our food and goods that 85% need to be shipped by truck over the GW bridge.

I hope we can restore our freight rail and harbor links to help reduce the cost.

renter

Yes, yes, yes, we KNOW rents are high because of stabilization laws. We're going to get about 100 comments here sayingthe same thing over and over again.

Here's something new: What can we do about it? The stabilization laws have been renewed through the summer of 2011. Give us some ideas of what WE SHOULD DO ABOUT IT until then.

whatever

Hey, you guys stop picking on homeopt!!

Yes, it is true that he lives in the most expensive zipcode in the city. But what he doesn't tell you is that he still lives at home.

will

jen,

rents are also kept artificially high by rent stabilization. which is effectively a subsidy, albeit a completely perverse one.

marissa predacon

As someone who lives in the most expensive zip code in the... wait, what the fuck? Homeopt You fucking douche! You stole my entire reason for being! Only I lived to write inane shit about how ridiculously unaffordable my living conditions were. But here you are. Alright, I must pass the crown off to you. You are the new pompous dick of manhattan. You won it fair and square.

poor little rich boy

homeopt, for someone who lives in the 'richest zipcode' you must live a pretty piss poor life to be commenting about it on this site all the time.

anon

for me its more like 80 % of my income; and i live in bk. at least the rest of the 20 % goes to amazing times.

Tim N.

Damn you, homeo... beat me to it! I was going to say I'll bet this is worse for you than most people. Sympathy is oozing all over the floor...

homeopt

As someone who lives in the most expensive zipcode in the city (ASWLITMEZITC), I can attest to this article. As you would expect, merchandise in this zipcode reflects the pricey nature of real estate.

Jen

And I'm joking (sort of) about subsidies. Sure, it's our choice live in NYC and deal with crazy rents, but the housing market in the city is just unfortunate.