In 2023, New York City saw rents rise at a rate seven times faster than wages, marking the largest gap among the 50 largest U.S. metro areas, according to a recent analysis by Zillow and StreetEasy. While the national trend showed wages outpacing rent growth last year, New York City moved in the opposite direction, with rents surging 8.6% compared to a mere 1.2% wage growth.

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This affordability gap, driven by a strong job market and high demand for rental units, has created significant challenges for renters. Despite new multifamily constructions across the city, demand continues to outstrip supply, making it difficult for the rental market to stabilize.

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Since 2019, U.S. rents have grown by 30.4%, outpacing wage growth at 20.2%. Nationally, last year offered some relief as wage growth (4.3%) surpassed rent growth (3.4%) in nearly half of the major metro areas. Cities like Austin, Portland, and San Francisco even saw rent reductions, giving renters more financial breathing room.

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However, the story differs in Florida, where three of the top five metros saw rent growth significantly outpace wages over the past five years. Miami, in particular, experienced a 53% rise in rents, the highest jump in the U.S., highlighting a growing disparity between income and housing affordability.