Stuck in the Middle
An article in this week’s Crain’s looks at how real estate prices and taxes are making the city increasingly unaffordable for the middle class. The rising cost of housing, in particular, has meant that families making between $80,000 and $150,000 a year are finding it more difficult than ever to make ends meet. Higher real…
An article in this week’s Crain’s looks at how real estate prices and taxes are making the city increasingly unaffordable for the middle class. The rising cost of housing, in particular, has meant that families making between $80,000 and $150,000 a year are finding it more difficult than ever to make ends meet. Higher real estate costs in Brooklyn, for example, have put the borough out of reach for many middle-income earners. A person profiled in the article who makes $60,000 a year looked all over Brooklyn before deciding to rent in Astoria. “Five years ago, [landlords] in Park Slope would have come to you,” he says. Interestingly, the story also notes that the city’s recent prosperity has contributed to a widespread sense of entitlement, thus making people believe that their incomes should stretch farther. “People used to squeeze kids into one bedroom; now everybody thinks every kid should get his own bedroom,” says Nicole Gelinas, a fellow at the Manhattan Institute.
Unaffordable NY: Tough Choices at $150,000 [Crain’s]
Photo by ultraclay!
Im entitled to a bedroom for every child, Im entitled to have a short commute, Im entitled to live near the subway, Im entitled to own an $800,000 house in Brooklyn, Im entitled to low rent, Im entitled to the best school distric, Im entitled…
“The best neighborhoods in Brooklyn should not include Bed Sty, Clinton Hill, Crown Heights, etc., Which are unaffordable for the middle class.”
Not true. Rents in these areas ARE affordable to the middle class. Middle class types can also find homes they can afford if they are willing to look hard enough and be flexible and creative. The article is presumptive and incorrectly draws broad conclusions from limited, anectdotal information.
“9:56am – If 43k is the average annual income in NYC, than what income is middle class? 500K??”
Duh – It median, not average income. It is heavily skewed due to the $0 Project Dwellers and Welfare beneficiaries. Take them out of the picture and you will get a very different #.
“Your ideal middle class family earning 150K wants to buy a home. The American dream. They’re entitled to it.”
Wrong again – They are entitled to NOTHING. They can live the American dream somewhere else. Who says they should be living in an $800,000 home in Brooklyn? So sad people, get over it. If you can afford it – great, if not, whinning about it will not change the reality that more desireable places do not automatically warrant an affordable place for you to exist in it.
Although not nearly as important as whether or not housing is affordable in the city, somewhere, the idea has become cemented in our society, that not only does each child need a separate bedroom, but everyone in the house is entitled to their own bathroom, preferably en suite.
We had one bathroom in our entire house, growing up. We dealt.
“the poor neighborhoods WAS ok”
“you HAS these asshats”
Jeeze what a loser you are.
Type fast let go stupid!
The What
Someday this war is gonna end…
Oh did I piss you off??!!! Jeeze go fuck your self
10:12 – Rent control/stabilization and other attempts to help the “middle class” are perfect examples of the law of unintended consequences. The result has been a substantial (but diminishing) stock of apartments occupied by a lucky few. Meanwhile, anyone who didn’t win the rent lottery must compete with everyone else for the resulting smaller stock of market rate apartments. The prices of apartments in this smaller stock are higher than they would otherwise be (supply/demand and all that) BECAUSE of rent control. Sorry for the basic economics lesson, but the fact that $150,000/year professionals often can’t afford Manhattan or Prime Brooklyn is in no small part a result of the very policies that were intended to help the “middle class” (a more manipulated and abused term is difficult to imagine, but I generally take it to mean anyone making between $80 and $150k in New York).
9:56am – If 43k is the average annual income in NYC, than what income is middle class? 500K??
You are delussioned to think that a ‘Middle class family’ earning 150K wants to rent for the rest of their lives and pay $$ to a landlord.
Your ideal middle class family earning 150K wants to buy a home. The American dream. They’re entitled to it.
Do the math Bubba.
150k – after taxes = 8,500 – 9,300 month
Even if they can find an 800k house, they will be paying $5600 in mortgage.
That is more than half their pay.
You’re right this is going to turn into a class warfare bout, cause during the real estate boom in NYC, Middle Class housing was not getting built. It’s now a little too late to address it, with a recession looming.
‘middle class’ leaving the city has been going on for decades for varying reasons.
OF course many opponents of rent-stabilization and mitchel-lama programs on this site – but they have helped retain a middle class in this city…and decreasing number of apts. with these controls is futher adding to ‘fleeing middle class’.
“The best neighborhoods in Brooklyn should not include Bed Sty, Clinton Hill, Crown Heights, etc., Which are unaffordable for the middle class.”
Unaffordable according to who? If you think you are entitled to a 3 family in Crown heights near the subway, define affordable.
You can rent family sized apartments in these areas for well under 2K. Is that not affordable for middle class?
Obviously this is going to turn into another class warfare bout – But FYI: Under $150K is not middle class for a family in NYC, sorry folks it just aint.
If you are a family of four making $150K in the 3 neighborhoods mentioned, they are very very affordable – I was at this income level 2 years ago and easily afforded a place in the South Slope.
If you are a family of 4 making $80,000, you are not middle class in NYC – Not even close!