Stop Complaining: New York Enters Top 7 US Cities With Wages Growing Faster Than Home Prices

As the impact of the pandemic on the economy continues, one of the main concerns of economic observers is inflation. Aggressive government incentives over the past two years, supply chain disruptions and continued uncertainty about proliferation COVID-19, as well as its consequences for certain industries - all of this potentially contributes to higher prices in the economy. Money Talks.

One of the positive developments in this direction was the increase in wages. Job growth has slowed in recent months and economic activity is still well below pre-pandemic levels. Because supply is limited, employers are raising wages to encourage workers to take jobs. This led to one of the steepest wage increases in recent years.

But the cost of housingand wages are highly dependent on local economic conditions. Some regions have been more influenced by these trends than others. In terms of wages, the largest increase is observed in the western states of the United States - 4,1%. They are outpacing growth in three other major US census regions. Residents of states and localities in the western region may find it easier to keep up with rising prices in the household spending category.

Areas with the most expensive housing

Concerning rentthen these are the areas that have been the most expensive in recent years, such as the San Francisco Bay Area, New York and Boston, where rental prices have risen more slowly than other cities. This is likely due in part to the fact that many employees left these cities in search of additional jobs or lower costs during the pandemic, which helped contain demand. In contrast, cities that have recently had lower housing prices have seen a sharp jump in rents due to the influx of new residents. In these areas, the differences between wage and rent increases are most significant.

On the subject: New York Housing Lotteries: Affordable Housing in Manhattan, Brooklyn, Queens and the Bronx

Data used in this analysis is from research employment cost trends US Bureau of Labor Statistics and the Zillow Observed Rent Index. To identify metropolitan areas where wages are growing faster than rents, the research team calculated the percentage difference between the annual change in wages and the annual change in rent for the period ending in the second quarter of 2021. A metropolis with a large increase in wages was rated higher. Only 15 large US metropolitan areas covered by the BLS survey were included in the analysis.

Below are the cities where wages are growing faster than rents.

Seattle, WA

• The difference in percentage points between the increase in wages and rent: +0,8
• Annual change in wages: + 2,4%
• Annual rent change: + 1,6%
• Average rent (2021): 1981 dollar

Chicago, Illinois

• The difference in percentage points between the increase in wages and rent: +2,1
• Annual change in wages: +3,0%
• Annual rent change: + 0,9%
• Average rent (2021): 1673 dollar.

Los Angeles, CA

• The difference in percentage points between the increase in wages and rent: + 2,1 %
• Annual change in wages: +5,4%
• Annual rent change: + 3,3%
• Average rent (2021): 2443 dollar.

Washington

• The difference in percentage points between the increase in wages and rent: + 3,8 %
• Annual change in wages: +4,3%
• Annual rent change: + 0,5%
• Average rent (2021): 1996 dollars.

Boston, Massachusetts

• The difference in percentage points between the increase in wages and rent: + 4,1 %
• Annual change in wages: + 3,6%
• Annual rent change: - 0,5%
• Average rent (2021): 2442 dollar.

New York, NY

• The difference in percentage points between the increase in wages and rent: + 5,1 %
• Annual change in wages: + 2,3%
• Annual rent change: -2,8%
• Average rent (2021): 2480 dollars.

San Jose, California

• The difference in percentage points between the increase in wages and rent: + 6,7 %
• Annual change in wages: +3,4%
• Annual rent change: -3,3%
• Average rent (2021): 2853 dollar.