Sunday, October 21, 2012
Cost of living rises faster than income
In the decade that ended in 2010, housing and transportation costs rose nearly twice as fast as income for median-income households in the New York metro area, according to a new report tracking the nation's 25 largest metro areas. The report, which was released Thursday morning, also had some good news, however: Despite the jump in costs, the New York area fell into the middle range in the group in terms of affordability, ranking 10th.
Housing and transportation costs in the New York area rose 55% during the 10-year period, while income grew 31%, according to the report by the Center for Housing Policy, an affiliate of the National Housing Conference. More than half of households' income, 56%, goes toward housing and transportation, with housing carrying most of the burden, at 34%. The report, dubbed "Losing Ground: The Struggling of Moderate-Income Households to Afford the Rising Costs of Housing and Transportation," covered New York-area households with annual incomes of $34,389 to $68,778.
The rise of housing and transportation costs in New York outpaced the average for the 25 metro areas, which rose 44% in the decade, driven mainly because of housing expenses.
In New York, the report found that homeowners carry a bigger burden than renters. Renters spend roughly 52% of their income on their home and transportation, versus a homeowner, who spends 61% on those items. Homeowners also lay out slightly more of their income on transportation, 24% versus 21% for renters.