Rising Wages in NYC Could Lead City to Hike Rents
The federal government recently reported that median household incomes jumped by 5.2 percent in 2015, the largest gain on record, meaning the typical American family got a raise for the first time in seven years. In New York City, the median household income rose by 5.1 percent, to $55,752.
Wage gains have been especially pronounced among lower-income earners. New York hairdressers and waiters, for instance, have seen average pay rise by 20 percent over the past three years, according to U.S. Labor Department data. In addition, the gains haven’t been eroded by rising rents, which, according to an analysis by Apartment List, grew only 2 percent last year—in part because the city’s Rent Guidelines Board for two years has rejected increases for rent-regulated apartments with one-year leases. With data showing that tenants have improved financial bearings, owners may make a strong case for rent increases next year.