Soaring rents are prompting New Yorkers to consider buying homes outside the city
New York City renters faced another jump in housing costs in the third quarter of 2025, with median asking rent reaching $3,599. That's a 5.4% increase from last year, according to Realtor.com’s latest NYC Rent Report.
Since rebounding from pandemic lows in 2022, rents have surged 20.2%, outpacing wage growth and intensifying affordability pressures for city dwellers.
Brooklyn led the boroughs with a 6.8% year-over-year rent hike, followed by Manhattan at 6.0%, the Bronx at 4.9%, and Queens at 2.2%.
Smaller apartments, or those with up to two bedrooms, saw the sharpest gains, with median rents up 6.0% to $3,581, while larger units posted just 1.0% growth.
“Affordability challenges remain front and center for renters and are one of the core issues at hand with the city’s upcoming mayoral election,” Danielle Hale, chief economist at Realtor.com, said.
“While many New Yorkers love the energy and opportunity of city living, our data shows that renters could afford to buy a home with the same monthly housing payment as their rent in nearby markets like Yonkers or Toms River—or even relocate to more affordable cities such as Philadelphia or Orlando, where their monthly budget would stretch significantly further.”
Renters paying today’s median NYC rent could afford a home priced between $400,000 and $690,000 in many popular markets nationwide, assuming a 20% down payment and a 30-year fixed mortgage rate of 6.35% as of September 2025.
United States mortgage rates slipped for the second consecutive week, with the average 30-year fixed-rate mortgage (FRM) falling to 6.27% as of October 16, 2025, according to Freddie Mac’s latest Primary Mortgage Market Survey.https://t.co/ZSR0FO6P7U
— Mortgage Professional America Magazine (@MPAMagazineUS) October 16, 2025
In Yonkers, just north of the city, the average renter could cover the monthly cost of a typical home priced around $421,000.
Other nearby options include Toms River, Brick, Freehold, and Jersey City, where homes typically range from the mid-$400,000s to the upper $600,000s.
For those considering a move farther afield, Philadelphia, Pittsburgh, Orlando, and Myrtle Beach all offer homeownership opportunities within reach of a typical NYC rent-level budget. However, Naples, Florida, remains out of reach for most renters due to higher home prices and insurance costs.
Income remains a major hurdle. To keep rent below 30% of gross income, renters would need monthly household earnings of $10,517 in the Bronx, $13,307 in Brooklyn, $15,823 in Manhattan, and $11,463 in Queens—annual incomes ranging from $126,000 to nearly $190,000.
“Even as wage growth has picked up, rent affordability remains a persistent challenge for many New Yorkers,” Hale said.
“That’s why we’re seeing continued interest in nearby suburbs and in more affordable metros nationwide, places where renters can channel their monthly payments into long-term homeownership.”
Affordability pressures drive renters to suburbs and other cities
The affordability crisis in New York echoes national trends, with rents rising faster than incomes in many major metros.There has been migration of urban renters to suburban and Sun Belt markets, as well as the growing appeal of secondary cities for first-time buyers seeking more for their money.
The interplay between rising rents, stagnant wage growth, and shifting migration patterns remains a central theme for the mortgage and housing industry.
Most Americans who moved in the past five years didn’t go far: 47% relocated within their own city, while only 17% ventured out of state. While most Americans haven’t moved in recent years, nearly a third expect to relocate in the next five years, a LugLess survey revealed.
National rental trends: Cooling markets offer limited relief
Meanwhile, rents continued their downward slide in September, offering a measure of relief for renters across the US. However, affordability challenges lingered, especially in coastal cities.
According to Realtor.com’s latest Rent Report, the median asking rent for 0–2 bedroom properties in the nation’s 50 largest metros fell to $1,703, a 2.1% drop from a year ago and $10 less than the previous month. This marks the 26th consecutive annual decline and the second monthly dip since March, signaling a sustained cooling in the rental market.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
