They say if you can make it in New York City, you can make it anywhere. But for a growing number of middle-class families, just making it in the city is becoming nearly impossible.
According to a new report from Henley & Partners, NYC boasts nearly 400,000 millionaires, the most of any city in the world.
Over the past decade, the number of NYC millionaires has grown by 45%, fueled by investors, tech entrepreneurs, and business elites flocking to the metropolis. While the pandemic briefly stirred fears of a mass exodus, New York’s wealthy stayed put — and multiplied.
But the influx of wealth is coming at a cost. Everyday New Yorkers, even those earning six-figure incomes, are feeling the squeeze.
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Forced to leave
Dana Dennis, born and raised in Brooklyn, is one of many caught in the city’s affordability crisis.
She and her husband earn more than $100,000 a year — a salary that would provide a comfortable life in many other parts of the country. Yet, after the birth of their first child, they realized staying in Brooklyn was untenable.
"I was seeing things on the market for like $4,500 [monthly rent] if I wanted to stay, even in (Bedford-Stuyvesant). This is not Midtown that we’re talking about, right? I’m talking about central Brooklyn," Dennis recalled to NBC News.
Unable to find a two-bedroom apartment they could afford, the family relocated to New Jersey — and they’re far from alone, according to a study from the Fiscal Policy Institute. In 2022, residents leaving NYC were most commonly earning under $172,000 a year. What’s more, over a third of those leaving said they moved specifically in search of affordable housing.
In response to the issue, NYC Mayor Eric Adams has a "City of Yes" initiative, aimed at dramatically increasing housing construction, with the goal of adding tens of thousands of new units over the next 15 years.
Still, for many like the Dennis family, that help isn’t arriving soon enough. Even New Jersey isn’t necessarily a safe, long-term haven. "We aren’t finding houses, not even here in New Jersey, that are under $750,000," Dennis indicated.
The hidden costs of relocating
While moving may seem like an obvious solution, uprooting a family from NYC comes with its own set of challenges, both emotional and financial.
First, families often must navigate complex and competitive job markets in their new cities. Changing jobs can sometimes mean taking a pay cut or losing valuable benefits.
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Then comes the logistics of enrolling kids in new school systems, each with different standards, calendars and bureaucracies. For example, a study found that 62% of organizations identified family concerns, including children’s education issues, as a primary challenge in employee relocation decisions.
Tax implications add another layer of complexity. States like New Jersey have different income tax structures than New York State, which introduces new rules about property taxes, income taxes and even vehicle registration.
There’s also the emotional toll of starting over. Social networks built over the years — from trusted babysitters to childhood friends and family — are often left behind. Rebuilding a support system takes time and can lead to feelings of isolation and homesickness.
A vicious cycle
Affordability may not change in the near term, as the median mortgage payment nationwide reached an all-time high of $2,800 in March.
Plus, cities that once seemed like economical refuges are a contributor, as they become more expensive themselves. For example, in "tertiary cities" like Asheville, North Carolina, rising interest rates and real estate investors are driving up the cost of living, creating a vicious cycle throughout historically affordable markets.
Bill Faeth, real estate investor, noted Asheville is currently a "top-five market in the entire country" for short-term rental investors.
As he put it, "When we go in, we are going to affect that median cost of living. There is no question."
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
