Ever wondered why 70 percent of the people living in Brooklyn, NY are renters – well if you have, the answer is because Brooklyn is considered the worst in the entire United States for affordable housing, followed by San Francisco and Manhattan.
According to a report published by RealtyTrac. A Brooklyn resident earning a median income would need to dedicate 98 percent of their income to afford the payment on a median-priced home for $615,000.00. Of the 475 counties that were analyzed by RealtyTrac through October, 98 of those areas were not affordable compared with the average level for the period starting in January 2000.
Cash Buyers, Investors, and Foreign buyers are responsible for driving the housing prices up, forcing Brooklyn residents to remain renters because the affordability is just not there. Sad to say their only choice is to stay renters, however, there has also been a significant increase in rental cost by almost 6% and we will certainly continue to see increases. Where does this leave Brooklyn residents since the market has become out of reach for a lot of residents?
The sad part is that incomes have not increased as rapidly as home prices as stated by Daren Blomquist, vice president at RealtyTrac.
Info Via Bloomberg
Image via Daily Mail