New York City Maintains its Ignoble Crown

For a good number of years now, renters of NYCfeel those dollars just pouring out of your wallet, like a
apartments have had the extreme displeasure ofcrisp waterfall on a spring day? Sometimes I think
paying the highest rents in the country. A new reportlandlords in the city just sit outside and watch people
suggests that the city is entering 2008 with awalk in and out of their buildings and make a cash
continuing hold on the unfortunate and smudged crownregister noise inside their heads, "ka-ching, ka-ching," as
which signifies its role as the most expensive city fortheir tenants walk by. The next closest city was San
renters in the country.Francisco, but its median rental rate was a full
The new report - by the major California real estatethousand dollars less than New York City. It stood at
investment firm, Marcus & Millichap - suggests that, atjust $1,904.
least insofar as median rentalrates, NYC apartmentsIn fairness to the equally cash-pressed San
far surpass those any other city in the country. TheFranciscans, though, these numbers are a bit deceiving.
median, for those that always get them confused, isNew Yorkers tend to cram more people into their
the number that is number that occurs most often in aapartments, so even though the apartments
set. So, when we say New York City's apartmentsthemselves are more expensive, those that life in the
cost a median monthly rent of $2,922, what we areCity by the Bay actually pay more per person.
really saying is that more New York apartments costThe report notes that there is more than just supply
$2,922 for rent a month than any other price. It's aand demand driving rental rates in the city up. Of
seemingly small difference between average - orcourse, New York City and San Francisco's low
mean - rental rates, but it's an important difference.vacancy rates force prices upwards, but the regional
Median rates are a better representative of what theinflation stemming from the high income of New
typical person pays, because it's not thrown off by theYorkers and San Franciscans is what makes rental
super-high numbers - the luxury rentalNYC apartments,rates so astronomically high in these two cities.
in this case - like the mean rental rates would be. It's aOf course, while this means that rental rates are
funny thing about New York City, though: In manyacceptable for high income earners, it means that the
cities, 2,922 dollars would get you somethingworking class in New York City is pressed harder by
approaching a luxury apartment.the high rental rates than in any other city in the
Here, though, it gets you the median. Can't you almostcountry.