With the recent incline in New York’s minimum wage, which was established at the end of 2017, working college students and fellow millennials may feel satisfied and financially stable. This satisfaction, however, quickly subsides with the recent findings of Street Easy, reporting that millennials are most likely to exceed their budget for housing in New York City. They are also the group most likely to consider purchasing a home and paying rent regularly in the next calendar year.
There is no doubt that New Yorkers are an exceptional group of Americans who bolster the economic engine that is New York City. However, housing more than 8 million people is the problem of economist’s and landlord’s concern. In order to come to conclusions about the views of New Yorkers who live in such a constricted metropolis, Street Easy conducted a survey of over 1,000 residents across all ages, races, and boroughs.
They reached the published conclusion in February 2018, that millennials and college students will exceed their budget for housing in the city. Meaning all or most of the income millennials receive will go towards housing, leaving little for investments, basic necessities, and travel costs. In a world where upward mobility is crucial in career stability, local millennials are concerned about their financial security.
The study also found that more than one in three New Yorkers state the high cost of living in the city is the main reason for leaving the big apple. Ronak Pansara, first-year Graduate student and Pace alumni, discussed his struggle with finding affordable living in New York City, “When I researched apartments, the city’s cost was double my price range. I had no choice but to choose an apartment outside in Jersey City. It ended up working out, I prefer the commute to a rent that swallows my paycheck.”
This seems to be a popular choice for students after graduation, however, students still working towards their Undergraduate degree have little wiggle room when it comes to cheap living costs. In fact, Street Easy confirmed that 45% of millennials in the study chose a pricier home than they’d planned to. This is shocking compared to the 31% of overall New Yorkers who exceeded their budget when renting their current home.
For University students, this means an inevitable high cost of living, however, Pace University was recently ranked as the #1 Private College for upward mobility. Meaning students will exceed the economic position they held before obtaining a college education. This may matter little, with the expensive living costs required to stay in the city, however, many students feel confident about living in the city post-graduation. University freshman, Isaac Wong says, “I’ve heard from countless people that New York is one of the most expensive places to live. While that might be true, I’m ready to search for apartments in the vast jungle of New York. Budgeting for adulthood will no doubt be tough, but I believe the resources will be there for me to find the most affordable environment of living”
