Housing has always been expensive in New York, but what's changed is who is feeling the pressure. The affordability crisis is no longer confined to New Yorkers on the margins. Limited housing inventory, elevated mortgage rates, and persistently high costs are increasingly affecting middle-income families and professionals who once assumed homeownership would be the natural next step. Many have built careers, saved diligently, and followed the traditional path to financial stability, only to find that buying a home feels further away than ever.
The consequences extend beyond the housing market. Affordability is increasingly shaping whether New Yorkers feel they can remain in the city at all. 76% of residents say affordability is a major factor in whether they stay or leave the city altogether (via “Citizens Budget Commission 2025 Survey”), while families with young children are leaving New York at disproportionately high rates as housing and childcare costs continue to climb. According to a report from the Fiscal Policy Institute, households with children under the age of six make up just 14% of New York City's population but account for nearly 30% of those leaving the city in search of lower mortgage payment and cost of living overall.
The risk is a continued exodus of residents who have long formed the backbone of New York's communities, not because they want to leave, but because they no longer see a path to staying without deferring major goals. In fact, about 71% of aspiring homebuyers say they've already postponed at least one major life milestone due to the cost of homeownership, while nearly one in five report delaying marriage or starting a family specifically because housing has become so unaffordable (via a 2025 "State of the American Dream" Report from Coldwell Banker).
What's clear is that the traditional homebuying playbook no longer applies, but according to financial experts, leaving the city and delaying those milestones aren’t the only options.
According to Kyle Markland, CEO of New York’s largest credit union, Municipal Credit Union, one of the biggest misconceptions prospective buyers make is assuming there's only one path to homeownership.
"I would never tell someone that today's market is easy because it isn't. But I also wouldn't tell them to give up, “said Markland. “I meet people all the time who assume they need a 20% down payment or think today's mortgage rates mean they should stop looking altogether. That's usually not the case. The biggest advantage buyers can give themselves is understanding their options before they decide homeownership is out of reach.”
While many buyers begin their search by scrolling listings online, housing experts say that understanding the financing landscape, available programs, and borrowing strategies first can help paint a much more realistic picture of what's possible. For example, through its partnership with the Federal Home Loan Bank of New York, Municipal Credit Union offers the Homebuyer Dream Program ®, which provides eligible first-time homebuyers with financial assistance toward down payments, closing costs and homeownership counseling, though many prospective buyers may not realize this support is available. Existing homeowners may also have options, including Home Equity Lines of Credit (HELOCs), which allow them to borrow against the value they've already built in their homes. Those options are critical in a market where down payments remain one of the biggest barriers.
For most prospective buyers, that often means starting the planning process earlier than they might have in the past. It also means understanding that buying a home in New York looks different than it does almost anywhere else. Roughly two-thirds of the city's owner-occupied housing stock consists of co-ops or condominiums, and financing a co-op can differ significantly from financing a traditional home.
Buyers also often need to navigate board approval requirements, maintenance fees, building financials, lender-specific requirements, and neighborhood-specific markets before making an offer. The financing process for a co-op in the Lower East Side can differ significantly from purchasing a condo in Chelsea or a home in Queens, making local financial institutions or housing counselors who understand those nuances especially valuable.
"A lot of being successful in buying a home in New York is about understanding the market you're buying into," Markland said. "People with six-figure incomes assume they can't buy because they don't understand how the process works, while others with fewer resources succeed because they asked questions early, understood the programs available to them, and built a plan."
Established in 1916 in New York City, Municipal Credit Union is the oldest credit union in New York, with membership is available to anyone who lives, works, worships or attends school in New York City. MCU is an Equal Opportunity Lender. This content is intended for educational purposes only and may include information about products, features, and/or services that MCU does not offer. MCU requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%.
To learn more, visit nymcu.org.
