A broker once told me he objected to the term “luxury” to describe one segment of the New York City market — with the steep cost of housing across the five boroughs, owning a home at all is a luxury.
It was an especially grounded take for an agent who’s built his career selling eight-figure townhouses in the West Village, and one echoed in a recent Redfin report measuring the gap between the income required to purchase a home versus rent across New York, Newark and Jersey City.
To purchase the average home on the market in February, buyers needed to make close to $200,000, compared to $113,000 to rent an apartment — a 76-percent difference, according to the report published Thursday. That gap widened over the last year from 55 percent in the same month in 2024.
The annual incomes noted in the report is significantly higher than the median salary of households in New York City, which the 2023 census pegged at about $80,000. The average salary was $128,000.
It’s worth noting that the average and median costs to buy a home across the boroughs was between $750,000 and $825,000 in February, according to Realtor.com, which is less than some homeowners pay in property taxes in Manhattan. (Billionaire Ken Griffin and the former Emir of Qatar owe $860,000 and $984,000 for the most recent tax year, respectively.)
But the salary gap may not matter to most New Yorkers in today’s turbulent macroeconomic environment. Rentals often win in times of uncertainty, and the latest reports show the city’s market is tighter than ever. The median rent in Manhattan hit $4,495 last month, an increase of 10 percent year-over-year.
Not so fast…
Trump’s tariff drama is giving the market whiplash.
New York City agents started the week talking buyers off the ledge, as the administration’s global tariff rollout sent the stock market tumbling. With the S&P 500 down 10 percent between Thursday and Monday, deals began falling through, and sellers and their brokers were pushed back to the negotiating table.
But by Wednesday afternoon, the Administration switched course, announcing a 90-day pause on the higher tariffs imposed on most countries and implementing a 10 percent tax instead. The news boosted the stock market, with the S&P 500 rising 8 percent and reversing some of the damage done a few days prior.
While the impacts of tariffs on the housing market remain unclear, the industry’s response to the news is a reminder that real estate, though tied to the macroeconomic climate, is always local.
In comments on The Real Deal’s Instagram page, agents across the country offered different takes on the effects of tariffs in their markets. Brokers in Dallas and Austin, Texas pushed back on reports of deals falling, pointing to continued momentum from the first quarter.
“We aren’t slowing down. People will always need homes,” the agent from Dallas wrote. “Turn off the news and go make a deal.”
But others in Florida, California and New York said their clients were hesitant to cross the finish line on deals with the market in flux.
Despite the mixed reviews, it’s clear the industry is keeping a close eye on what the Trump Administration does next.
NYC Deal of the Week
The priciest deal to close this week was a penthouse at Related Companies’ 35 Hudson Yards, which sold to an unknown buyer for just under $29 million. Unit PH91 has seven bedrooms, seven bathrooms and a terrace.
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