Study: Rochester has one of the largest gaps in rent and wage increases

ROCHESTER, N.Y. (WROC) — A nationwide study found that Rochester has one of the largest gaps between rent and wage increases.

Rochester and Buffalo topped the list for places where rent outpaced wages the most from 2022 to 2023. Rochester ranked fifth. Researchers also surveyed renters across the US to see how rent prices impact them individually, and 38% said they can’t comfortably afford their rent without facing financial strain.

“Rent increases can be caused by a growing demand for rental housing, a limited supply of rental housing, and a mostly unregulated market,” said Research Specialist Rebecca Sowell.

Sowell says the city’s median rent went up by 5.73% from 2022 to 2023, but wages only increased by 3.17%. To collect this data, researchers reviewed information from Zillow and the US Bureau of Labor Statistics.

“The way to address rent increases is to actually build more homes and that will help housing affordability,” Sowell said.

Rochester Deputy Commissioner of Neighborhood and Business Development Erik Frisch said there are nearly 2,000 new units of housing either completed, under construction, or anticipated to begin by 2026. At the same time, 1,000 units of existing affordable housing are being replaced or preserved.

“I don’t know that there’s been a time in modern history where there have been so many new units of housing under development in the City of Rochester at any one time,” Frisch said.

Frish adds that new housing is only part of the solution.

“We say that Rochester doesn’t have a rent problem,” said Frisch. We have an income problem.”

To solve this, Frisch says, the city has to work to attract more jobs with large businesses, support small businesses, and ensure locals have the right skill sets to get those higher-paying jobs.

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