How Do the Poor Afford New York Living? | Robert Khodadadian

Click here – http://www.bloombergview.com/articles/2014-09-26/how-the-poor-can-afford-to-live-in-new-york

NYC – With recent numbers out from the last quarter in real estate, we know that the median income for a New York household is about 50,000 a year and the average rental price of a home is close to 3,000 a month. As you might notice, that information doesn’t quite add up. That means over half the population in New York are making less than 50 grand a year and most of that money goes toward their rent.

Well, you might think that, but actually, it all focuses on one particular aspect about New York. It’s the one city that happens to have some of the densest areas of rent-controlled properties. That means as long as the same person is living in the same apartment or home, their rent doesn’t go up. This results in many rent controlled properties being considerably low in cost compared to most other real estate. This is especially true when many people cling to a rent-controlled property the moment they’ve attained one.

This means we end up with people in New York who are paying maybe one thousand a month for a place, and they’ve been doing it since 2005, when that was a reasonable amount to pay for rent. Now still paying only that amount when prices for New York real estate have risen today means you can get away with having a lower income while still living in New York, especially when you can obtain supplements like Food stamps, which over 2 million New Yorkers are on.

But if there are so many of these rent-controlled properties, then how is the average rental price so high? Well the new rental housing that is made ends up having to raise their prices so that the owners of the property can make money off owning it compared to say, owning a rent-controlled property where everyone in it has been living there for many years. Of course, that means that the majority of new housing that is created for renting, tends to actually be high-end properties, places that people with much higher than 50,000 a year will rent from.

This is what creates such high numbers in the long run despite so many poor people and people on assistance from the government living in the city. It’s a strange process, but surprisingly it creates an atmosphere where it is actually easier to live in New York if you make a lot of money or almost no money, but a rather poor atmosphere if you make just above an amount that you can get help from the federal government. So you could say New York City is made almost entirely of Low class and High Class, and all the middle class is left out these days.

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