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?
