Analysis of Rent and Income Changes Over Time
Rent Prices
Rent prices in Manhattan have seen significant increases over the past 14 years. In 2006, the average rent was $1,580, and by 2022, this had risen to $2,100, marking a 75% increase over the period. However, this rise comes amid a challenging economic environment, with nearly 50% of the population earning less than in previous years.
The horizontal axis (x-axis) represents the years, and the vertical axis (y-axis) shows the rent prices.
Affordable Rental Units and AMI (Area Median Income)
The availability of affordable rental units has also changed significantly over time, which is critical for understanding how gentrification affects housing affordability. Here are some key figures:
- Rental units affordable at 30% AMI: The percentage of recently available rental units affordable to households earning 30% or less of AMI increased from 4.7% in 2010 to 5.3% in 2022, marking a 12.77% increase.
- Rental units affordable at 80% AMI: The percentage of rental units affordable to households earning 80% or less of AMI increased from 23.0% in 2010 to 27.8% in 2022, reflecting a 20.87% increase.
- Rental units affordable at 120% AMI: For households earning 120% or less of AMI, the percentage of affordable rental units increased from 47.6% in 2010 to 60.9% in 2022, a 27.94% increase.
While these increases in affordable units at higher AMI thresholds may seem positive, the fact that rents continue to outpace income growth means that housing remains unaffordable for a significant portion of the population, especially in gentrified areas.
More on Rent Changes
Rent changes have been consistently positive, with the average rent percent changes between 2006 and 2022 being around 18-19%, indicating regular increases every year. However, rent increases have been especially high in some years, with some increases reaching up to 28% and the highest at 33%. These periods saw particularly steep rent hikes.
The horizontal axis (x-axis) represents the years, and the vertical axis (y-axis) shows the percentage change in rent. For example, a value of 0.10 means a 10% increase in rent.
Overall, rents have been steadily increasing, but you can also see some years where the increases were smaller or even slightly negative before going up again. Recently, there's been a noticeable jump in rent increases, suggesting that prices are rising faster now, possibly due to factors like inflation, higher demand for housing, or changes in local policies.
Income Changes
Income changes tend to be smaller and more varied than rent changes. On average, income increased by around 9%, with the typical (or middle) increase being about 7%. While some years saw higher income growth, these increases are generally more modest compared to the larger jumps in rent prices. This suggests that, over time, rent increases have often been faster than income growth, making it harder for many people to keep up with rising rent costs.
Comparative Analysis: Rent vs Income Changes
Comparing the trends in rent and income changes can help us understand whether income growth has kept pace with rising rents, offering valuable insights into housing affordability.
The horizontal axis (x-axis) shows changes in income, while the vertical axis (y-axis) shows changes in rent.
The pattern looks a bit unpredictable, with rent increases often being higher than income increases, especially during years when both are growing quickly. This suggests that rent prices don’t always rise at the same rate as incomes, which could be making it harder for people to afford housing when rents grow faster than wages.