To buy a median-priced home in NYC, a household needs an income of at least $211,970 — nearly three times the national average. Lower mortgage rates cut the required income by $10,625 from last year, while falling Manhattan prices reduced it by $33,593 year-over-year.
For many New Yorkers, homeownership still feels out of reach, with the citywide median asking price hitting a steep $1.05 million as of August 2024 — more than three times the national average. However, StreetEasy® data suggests that prices may have already peaked. As inventory grows and mortgage rates continue to fall, buyers who are ready may find that now is the right time to make their move.
One major question still lingers: how much money does it really cost to purchase a home in the nation’s most expensive city?
*Lower Third of NYC market as of August 2024 included homes priced below $730,000.
Required Income for NYC Homeownership
To estimate what it takes to buy a home in NYC, we analyzed median asking prices across the entire market and within the most affordable third, using StreetEasy listings from August 2024. This approach reflects what buyers are likely to encounter whether shopping broadly or focusing on lower-priced options. We then calculated the income needed to keep monthly mortgage payments within 30% of gross income, assuming a 20% down payment and a 6.5% interest rate on a 30-year mortgage—the average rate as of August 2024.
According to U.S. Census data, only 15% of households in New York City earn a combined income of $200,000 or more—enough to afford a median-priced home. To meet the average income needed to buy in NYC, currently around $211,970, a household must earn nearly three times more than the average homebuyer nationwide.
While there are many homes in NYC priced below the median, most still require a six-figure household income to purchase. Even in the lower third of the market, buyers need an annual income close to $95,000—an amount within reach for about 39% of the city’s households.
Lower Mortgage Rates Reduce Minimum Income Needed to Buy a Home
In the final week of August, the average 30-year mortgage rate dropped to a 16-month low, falling below 6.5%. While listing prices are still elevated, the recent dip in mortgage rates has boosted buyers’ purchasing power. Today, a typical buyer with a mortgage in NYC needs a minimum income of $211,970 — $10,625 less than the requirement a year ago.
Brooklyn has been the most competitive real estate market in the city, but the recent decline in mortgage rates offers some relief. Buyers in Brooklyn today need $1,857 less in income than they did a year ago to afford a home. The biggest drop in income required has occurred in Manhattan, where prospective buyers can now earn $33,593 less than they did last year, due to falling asking prices. However, Manhattan remains largely inaccessible to many, with a minimum income of $308,449 needed to afford a median-priced home in the borough.
