Daniel Wu
My friend, John, invited me to visit him in NYC this past weekend. When he told me he lived in East Harlem, I imagined him studying under leaky, lead pipes. But at least, I imagined, he had cheap rent. When I met him in front of his white, square building (We affectionately call it his Gentrification Spaceship), he told me he paid $1000 a month, a “good deal” compared to his student friends next door who paid $1500. His spaceship isn’t cheap, especially since he makes less than $15,000 a year.
A 2009 report by The Center for Urban Future showed that he isn’t alone; NYC is the most expensive metropolitan area in the nation. Take “Bob,” the blue-collar policeman. He’s had at least a decade of experience on the job. According to the Bureau of Labor Statistics, Bob makes about $60,000 a year. That’s about $20,000 more than the average NYC resident’s income. But, when you consider the costs of food, utilities, rent, and other essentials, that $60,000 in NYC would be equivalent to making $26,000 in Atlanta. This is no surprise when a month of rent on average costs $2,800. Occupy Wall Street made a smart financial decision by sticking to the Zuccotti park benches. I urge Bob to join.
What is more disturbing is that these cost of living trends are not unique to NYC. In 2006, the Center for Housing Policy published a startling report which found that across the United States’ 28 major metropolitan areas —that includes the suburbs— working families spent about 60% of their income on housing and transportation alone. When you add in the cost of food, 75% of the average working family’s income vanishes yearly into gas stations, auto insurance bills, rental checks, mortgage statements, and supermarket receipts. High cost of living is linked to a more pervasive problem.
When examined historically, the immensity of these costs becomes more clear. Take housing. In the late 1970s, during one of the United States’ worst economic recessions, housing costs in New York City were about 3 times the median income. Currently, housing costs represent 7 times the median income. The American dream in New York City is now over twice as expensive.
These exorbitant costs affect everyone: Latinos, Whites, single parents and families, and recent college graduates. When Americans are paying so much for the basic necessities of life, more and more are going bankrupt and less and less are free to invent the next big thing and reach their dreams.
The private sector, our government, and all our local communities must act on this pressing, yet invisible issue. We must urge lenders, developers, and policymakers to create more quality and affordable housing, transit, and food systems. When we do so, we can expand opportunity for all and strengthen the middle class. My next post will specify ideas for the first point — housing — that require attention. For now, let’s hope for fewer spaceships and more affordable housing.
