FOLLOW US

Across the country, Americans are seeing their living costs surge like never before.

Just this month, the Labor Department revealed the United States inflation rate reached 9.1%. This comes as the Biden administration continues to downplay the severity of inflation, amid pushing for more spending bills.

One public survey after the next shows that living expenses are very problematic for everyday Americans. Inflation continues to grow at a rate many times faster than wages.

In communities that were already expensive, to begin with, the sting of inflation runs very deep. One prime example of this is New York City.

A deep dive into life in New York City

Aside from dealing with a unique set of crime issues, rent prices continue to go far beyond what most New Yorkers can afford.

In Manhattan, for instance, the average monthly rent cost shakes out to about $5,000 each month. That's not counting utilities and other baseline bills that come along with living.

A report from real estate agency Douglas Elliman shines a light on what's happening here. For one thing, demand remains higher than supply, thereby making the New York City market tip in favor of landlords, rather than renters.

Other New York City communities, such as Brooklyn and North Queens, have average rent prices of over $3,000 per month.

However, Manhattan's average is a nearly 30% increase from where it stood in 2021. With inflation still spiraling out of control, there's no sign of rent prices dropping anytime soon.

Another problem facing the Empire State

As New York City's rent prices increase, so does the potential for this to backfire. That's because New York just so happens to be one of the top states that Americans have moved out of since 2020.

Between unaffordable living costs and tight COVID restrictions, many residents with the ability to leave determined it was time to jump ship.

The reality is that many people cannot afford to spend $3,000 to $5,000 per month (minus utilities) on rent. With the Federal Reserve repeatedly increasing interest rates, the money just isn't there for many Americans.

If rent costs continue on their current trajectory, the likelihood of more New Yorkers leaving the state only grows.