Photo: faungg’s photos/Flickr
The NYC area unemployment rate has decreased by almost 2 percent to 4.8 percent from 6.5 percent since this time last year. But rising employment and income rates still can’t keep pace with rising rent prices.
The NYU Furman Center analyzed the latest data from the American Community Survey and found that the gap between rent and income continues to widen. Between 2013 and 2014, median rents rose sharply (2.9 percent), and in the past decade, median rent increased by a total of 14.7 percent, up to $1,244 from $1,112 (numbers adjusted for inflation).
Meanwhile, median household renter income increased by only 2.3 percent from $40,519 in 2005 to $41,449 in 2014.
It’s likely that this is because the economic recovery created more low-income jobs than well-paying jobs. The National Employment Law Project found that between 2008 and 2014, industries that pay less made up 22 percent of recession losses and 44 percent of recovery growth.The highest job growth was in food services, administrative and support services and retail.
Still, since 2014, New York’s largest sector for job creation has been in traditionally middle-income job sectors:
Educational & Health Services (+71,000), Professional & Business Services (+26,400) and Construction (+21,500).
Mayor de Blasio’s One NYC plan promises an inclusive economy with well-paying jobs and opportunities for all New Yorkers. His efforts focus on job creation and worker preparedness, as well as access to affordable housing.