Living in New York City is an extraordinary experience, but it takes more than a normal income to afford a roof over your head.

According to a new report from Realtor.com®, the median asking rent in the city was $3,421 in July.

While rents are falling in the US, they rose by $73 in the Big Apple compared to the same period last year – an increase of 2.2%.

“Although New York City was one of the rental markets that experienced the sharpest rent declines during the (COVID-19) pandemic, median asking rents recovered to pre-pandemic levels by spring 2022 and have continued to rise annually since then,” says Jiayi Xu, economist at Realtor.com, in her recent analysis.

Overall, average rents in New York City were $413 higher in July than they were before the pandemic in 2019, an increase of 13.7%.

“The rental market in New York City remains very strong,” says Jenny Lenz, managing director of Dolly Lenz Real Estate in Manhattan. “Even in the height of summer, properties are selling quickly and at asking price or, in some cases, even more.”

Still, rent is much cheaper in some parts of town than in others. We’ve crunched the numbers to find the biggest bargains in the Big Apple.

Rents in Manhattan are falling

This July marks the 13th consecutive month that rents in Manhattan have declined year-over-year.

The median rent in New York City’s most expensive borough was $4,489 last month – $91 less than a year ago, a saving of 2.0 percent.

The even better news is that the median rent price in July was $362 lower than its peak in August 2019.

The median rent in Manhattan was still $171 below pre-pandemic levels in July, “suggesting relatively lower demand in this most expensive market,” Xu says.

To afford rent for a typical Manhattan apartment without spending more than 30% of your income on housing and utilities, you’ll need a gross household income of $179,560 per year—or $14,963 per month.

That’s nearly $105,000 more than the median household income in the U.S., which was $74,580 in 2022, according to the U.S. Census Bureau.

Rents are rising in the outskirts

Despite the price drop in Manhattan, renters in Queens, the Bronx and Brooklyn, all of which saw significant rent increases in July compared to the same quarter last year, are paying higher monthly checks.

This indicates stronger demand in lower-cost areas.

“With Manhattan rents at record highs and tight supply, we’re definitely seeing more renters than ever considering the outer boroughs,” says Lenz. “With the current uncertainty surrounding the economy, affordability and budgeting have become top priorities. Many are now willing to forego living in Manhattan to make significant savings by renting in another borough.”

Find out what’s happening in Queens, the Bronx and Brooklyn.

Queens

Of these three boroughs, Queens saw the largest increase in rent prices, up 8.2% to $3,380.

That’s $256 more than the same period last year and the highest rent price in Queens ever recorded in our data.

Rents there are a whopping 40.1% higher than in 2019. This means that tenants in Queens now have to pay $967 more per month in rent than they did five years ago.

To afford rent on a typical home in Queens without spending more than 30% of your income on housing and utilities, you would need a gross household income of $135,200 per year, or $11,267 per month.

The Bronx

In the Bronx, median rent was $3,175 in July, up 7.7% from a year ago, meaning renters pay an additional $226 per month.

This is the second highest rent price in the Bronx since March 2019.

Rents in the Bronx were $1,202 higher in July than in 2019 – an increase of 60.9% in five years.

To afford rent for a typical Bronx apartment while meeting the 30 percent rule of thumb, you would need a gross household income of $127,000 per year—or $10,583 per month.

Brooklyn

In Brooklyn, rents increased $124 (3.5%) in July compared to a year ago, averaging $3,718 per month.

This is the highest rent in Brooklyn we have ever seen in the history of our data.

Rents have increased by $916 (32.7%) since 2019, before the COVID-19 pandemic.

To afford rent for a typical Brooklyn apartment without spending more than 30% of your income on housing and utilities, you would need a gross household income of $148,720 per year, or $12,393 per month.

Smaller units are in demand

In New York City, size matters.

In July, there was greater demand for smaller than larger rental units.

On average, the median rent for studios, one-bedrooms, and two-bedroom apartments in the city was $3,322, an increase of $72 (2.2%) since July 2023.

At the same time, the median rent for larger units with three or more bedrooms fell to $4,996, a decrease of $262 (5.0%) from the previous year.