As NYC Rents Hit New Highs, 85% Of Residents Look To Buy Elsewhere – Here's What They Find

Soaring New York City rents have pushed most residents to explore homeownership opportunities in other states, with new data from Realtor.com revealing 85% of Manhattan’s online home searchers looking beyond state lines.

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The exodus mentality comes as Manhattan’s median monthly rent hits $4,415. While it does represent a slight 1.1% decline over last year, outer borough increases have kept citywide rents climbing. According to the report, the Bronx leads with an 8.6% jump to $3,164, followed by Queens rising 7% to $3,343, while Brooklyn edges up 0.1% to $3,683.

The city’s rental market runs counter to national trends, where the top 50 markets have seen 15 consecutive months of rent decreases. New York’s median asking rent rose 1.7% year-over-year to $3,374 in October 2024, marking a 13.1% increase from pre-pandemic levels.

“Shoppers who have the flexibility to move away and keep their housing budget at Manhattan rental levels, can fast-track the path to homeownership,” Realtor.com economics analyst Jiayi Xu was quoted in the report. The typical Manhattan renter’s income requirement of $176,604 could support home purchases in other markets.

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Analysis shows Manhattan renters allocating their current $4,415 monthly housing budget toward mortgage payments could afford homes ranging from $600,000 to $750,000 in popular relocation destinations. The calculations assume a 20% down payment and a current 6.43% mortgage rate.

Bridgeport, Connecticut, was a particularly attractive option. Manhattan renters could afford homes priced at $646,150 – nearly double the area’s median listing price of $322,500. The city offers both beach access and rail connections to New York, the Realtor said.

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Similarly, West Palm Beach, Florida presents opportunities with a median list price of $399,900, well within reach of former Manhattan renters’ $655,500 budget. Myrtle Beach, South Carolina offers even greater buying power, with $752,000 in purchase potential against a median listing of $299,900.

Closer to home, New Jersey’s Long Branch attracts interest despite its $1.22 million median listing price, as Manhattan rental budgets could still secure $624,000 properties. Pittsburgh rounds out popular destinations, offering broad market access with its $255,000 median listing price well below potential buyers’ $599,800 budget.

The trend represents a shift in housing strategies as New Yorkers increasingly view their substantial rental payments as potential mortgage investments in more affordable markets.

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