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Wealth
Living
NYC’S RENT SURGE DEFIED BY NEW GRADS PURSUING A TIKTOK LIFESTYLE
Rental prices are growing at nearly twice the rate of entry-level salaries, so
young newcomers are doing “whatever it takes” to live the lifestyles they’ve
always aspired to.
Macy Hung affords her penthouse apartment in Manhattan by working two jobs and
sharing the space with four roommates.
Photographer: Allison Hess/Bloomberg
By
Paulina Cachero
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June 14, 2023 at 10:00 AM GMT
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IN THIS ARTICLE
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On TikTok, Macy Hung is living the New York City dream. At just 21 years old,
the California native has a coveted job in beauty marketing and lives
in a penthouse apartment overlooking the Brooklyn Bridge. She spends lazy
weekends shopping in Soho and throws sumptuous dinner parties with friends.
What you don’t see online is what it takes to make that lifestyle a reality.
Hung has four roommates, works 10 hours a day, has side hustles and used $1,500
of the $20,000 she saved up working full-time in college to move into the
apartment.
“I knew things were expensive in Manhattan, but it’s my dream to live in the
city,” said Hung. “If you’re not making six figures, it’s hard to get by.”
Living in New York has always required sacrifices and tradeoffs for those just
starting out, especially for those with visions of keeping up with — or at least
emulating — the Joneses. But as rental prices grow at nearly twice the rate of
entry-level salaries, it’s squeezing the incomes of the current crop of college
grads, many of whom were raised on social media and refuse to compromise on
lavish nights out and living in the heart of the Big Apple.
Renters today need to earn more than $135,000 to afford a typical apartment in
New York on their own, according to StreetEasy. That’s the highest in data going
back 16 years, according to the analysis, which follows the rule of thumb that
individuals should spend no more than 30% of their income on housing.
Recent graduates who can’t bolster their entry-level earnings with the “bank of
mom and dad” are embracing a “whatever it takes” attitude. Sometimes that means
taking on several roommates to live in a prime location, or finding side gigs to
cover those expensive Instagram- and TikTok-worthy moments.
NYC APARTMENT INCOME REQUIREMENTS GO THROUGH THE ROOF
Renters need to earn nearly $136,000 to afford a typical apartment
Source: StreetEasy
That lag between wage growth and cost of living is exacerbating the disparity
between young people who can rely on family wealth and those who have to make
more sacrifices to afford living in the land of opportunity, said Lisette
Nieves, president of the Fund for the City of New York.
“We’re in a once-in-a-generation housing crisis,” said Nieves, whose institution
is charged with implementing policy to advance the functioning of social
services and nonprofits.
The city’s rental market is one of low inventory and high demand. It’s picked up
since its pandemic lows, with Manhattan apartments flying off the market in May
after an average of 35 days, the fastest rate in nearly a year, while the median
rent on newly signed leases reached $4,395, according to Douglas Elliman.
That’s the third straight month rent prices hit a record high. Rents in Brooklyn
hit $3,550, a second consecutive monthly record, while units in northwestern
Queens, including Astoria and Long Island City, hit $3,402.
Read More: Manhattan Apartments Are Leasing in a Flash Ahead of Summer Frenzy
All told, rents grew 20% over the 12-month period ending in December, reaching a
median of $3,392 in May, according to StreetEasy’s economist Kenny Lee. That’s
nearly twice the rate of the 11% growth seen in entry-level earnings in the same
time period, according to data from Glassdoor.
GROWTH IN ENTRY-LEVEL SALARIES IS SLOWING
Source: Glassdoor
Note: Annual salaries for workers in the New York City metro area with 0-3 years
of experience
Hung dealt with that head on, when she and two friends began hunting for a
three-bedroom apartment after graduating from Cornell University last spring.
Struggling to find something in their budget, the trio realized they might have
more luck searching for a home for five. Nearly a month and a half and 100
apartment listings later, the girls landed a five-bedroom apartment — what they
call a “Manhattan sorority house” — in November.
The housing hunt was just half the battle. With a monthly net rent of $11,333,
they scrambled to prove they had a combined income of nearly half a million
dollars — most landlords require that renters earn 40 times the monthly rent. A
fortunate few can turn to guarantors, who are typically family members who earn
80 times the monthly rent.
Macy and her roommate, Maddie, in their apartment.
Photographer: Allison Hess/Bloomberg
For many, like Jordan McKinney, living in Manhattan is entirely out of the
equation. The 22-year-old stylist assistant treks to photoshoots across
Manhattan from Flatbush, Brooklyn, where he pays $935 for a room. While he’s not
living quite the lifestyle he imagined, it’s the only way he could give himself
a shot in an industry with “nepo babies” who don’t have to worry about only
earning $20 an hour.
“If I paid $1,500 to live closer, that does not include food, transportation, or
going out for a nice mai tai,” said McKinney, who works odd jobs in between gigs
to make ends meet. “I need $2,000 a month just to survive.”
For Piper Phillips, 22, her priorities were living in a prime location and
maintaining an active social life. Sometimes that means forking over exorbitant
amounts for “Ritz Wednesday” cocktails topping $20 at Nubeluz rooftop
bar and $90 dinners at Scarpetta with her friends who have high-paying banking
jobs.
Piper Phillips, center, with her roommates Will Hobick, left, and Vivi Armacost
in their apartment.
Photographer: Allison Hess/Bloomberg
While the sticker price of those experiences makes her cringe, the marketing
director’s two side gigs make her feel “less guilty” — and ensure she’s not
living beyond her means. Once Phillips is off the clock for her day job, she
posts TikToks on her personal account, where she commands $1,000 for sponsored
posts, or creates content for other companies. Her side gigs put her on track to
bring in a total of roughly $100,000 this year, she said.
It’s also how she affords living in a $6,000 one-bedroom apartment in Hell’s
Kitchen. That is, with the help of two roommates and a flex wall.
“I worked so hard to get here, I didn’t want to compromise on the life I wanted
to live,” said Phillips, whose TikTok gives young people advice on how to
network in New York. “The cost of living here is an investment in myself.
It sounds crazy to justify $25 cocktails, but being here opens doors for
my career. That’s worth the costs.”
Read More: Young Professionals Are Leaving New York
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