04:04 PM EDT, 05/07/2024 (MT Newswires) -- US rents have outpaced wage growth over the five years through 2023, while the gap in New York City climbed to seven-times last year, a report published by Zillow Group ( ZG ) (Z, ZG) on Tuesday showed.

Rents nationwide have grown 1.5 times faster than wages since 2019, according to the report. Over the five-year period, rents have consistently outpaced wages in 44 of the 50 largest US metros, Zillow ( ZG ) said.

The trend cooled in 2023 with national rent growth of 3.4% increasing at a slower pace than the 4.3% gain in wages. Strong multifamily construction helped absorb demand for apartments and kept rent growth in check, according to Zillow ( ZG ).

However, in NYC, rents grew more than seven times faster than wages last year, the biggest gap in the country. Rents rose 8.6% across the city's five boroughs while wage growth edged up 1.2%, according to the report.

"It is encouraging to see much of the country making even modest progress in the rental affordability crisis," said StreetEasy Senior Economist Kenny Lee. "Unfortunately, New York City is heading in the opposite direction."

StreetEasy is Zillow's ( ZG ) NYC real estate search engine.

"Despite a strong job market in the city, and in some ways because of it, the gap between what a typical renter can afford and the price of rentals on the market is growing," Lee said. "New multifamily buildings coming online has eased competitive pressure in many markets, but in New York City, construction just simply can't keep up with demand."

Florida has three metros where the spread between rent and wage growth has been among the most dramatic in the country over the past five years, fueled by a surge in demand due to migration, according to the report. In Miami, rents have climbed 53% since 2019, higher than anywhere else in the US.

Rents dipped in three markets in 2023 -- Austin, Texas; Portland, Oregon; and San Francisco, California.

Price: 43.41, Change: +1.71, Percent Change: +4.09