According to a new report from Construction Coverage that looks at home price-to-income ratios across the U.S., New York State has 11th highest home price-to income ratio in the country.
Housing is the largest regular expenditure for most households, so the failure of wages to keep up with housing prices can make housing costs even more expensive in real dollars. And since the onset of the pandemic, housing prices have skyrocketed, with the cost of homes sold in the U.S. increasing by more than 40%.
Income growth lagging behind rising housing costs, however, is not a recent development. From 2000 to 2022, the median annual household income in the U.S. increased by 77.6%, from $41,990 to $74,580, while the median home price nearly tripled—a 170% increase—from $123,086 to $332,826. On an inflation-adjusted basis, household incomes increased by just 4.5% since 2000, while home prices increased by 59.1%.
This gap between wage growth and home price growth may be most severely felt in areas where home prices are increasing the fastest. To find the locations with the highest price-to-income ratios, researchers ranked locations by the median home price divided by the median annual household income.
These are the key takeaways from the report for New York State:
- The median home price in New York State increased by 36.1% over the past five years, and now sits at $453,138.
- Meanwhile, the median income for New York State households is $79,557—resulting in a home price-to-income ratio of 5.7.
- Overall, New York State has the 11th highest home price-to-income ratio of any U.S. state.
