What’s the Cost of Housing in New York City?

Yesterday I talked about how difficult it is to settle on reliable figures for housing costs in large urban areas. Here’s another example, this time focusing on New York City. There are, at a minimum, four widely-used housing indexes:

  • Case-Shiller home price index
  • Case-Shiller condo price index
  • BLS inflation of primary residence index (includes Newark and Jersey City)
  • HUD 50th percentile rent estimate

Here they all are on a single chart. The dashed black line represents overall inflation:

If you look just at home prices, there’s been no rise at all. Compared to inflation, home prices fell in the 90s, skyrocketed in the aughts, and ended up flat. However, if you look at the inflation rate for primary residences, which includes all forms of housing, it’s now about 20 percent higher than overall inflation. Ditto for the HUD estimate of average rents. Then there’s the Case-Shiller condo index, which is currently about 40 percent above the overall inflation rate compared to where it was in 1987.

But what if you don’t care about long-term history? You just want to see what housing prices look like over the past few years. Here you go:

This time, both the BLS inflation index and the Case-Shiller housing index suggest that housing prices have decreased over the past decade. Apartments and condos, conversely, have risen, but are still only about 5 percent more expensive than they were in 2010.

So which one of these best represents the price of housing in New York City? Or are they all wrong?

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate