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New York City is often referred to as the “capital of the world,” and it is easy to understand why.
The Big Apple is a cultural melting pot, attracting people from all corners of the world on the promise of opportunity. It is the world’s financial center, where global economies congregate to trade billions of dollars each day.
Highlighting the great diversity that exists in New York City, LendEDU’s newest report analyzes the vast financial differences between the city’s boroughs and neighborhoods.
With the help of data licensed from Experian, LendEDU’s “A Look at New York City’s Finances: Neighborhood by Neighborhood” evaluates the financial health of all neighborhoods in each of the five boroughs based on six key indicators. The six key indicators are as follows: (1) Average Credit Score; (2) Average Income Insight W2SM Score; (3) Average Mortgage Balance; (4) Average Student Loan Balance; (5) Average Credit Card Balance; (6) Average Auto Loan Balance.
New York City is a metropolis where economic situations can change drastically not only from borough to borough, but neighborhood to neighborhood. Below, you will be able to see how each neighborhood is faring, on average, in those six key financial metrics.
Interactive Map of New York City’s Finances
Best Credit Scores
The following table ranks each New York City neighborhoods by average VantageScore® 3.0, or just credit score. A higher credit score meant a better placement in the rankings. Average credit score is perhaps the most telling indicator of a neighborhood’s financial well-being since it indicates to lenders a consumer’s capacity to repay a loan. It is a solid representation of one’s economic situation and purchasing power, or in this case, an entire neighborhood.
>> Read More: What is a good credit score?
Best Income Insight W2SM Scores
The table below ranks every neighborhood in the Big Apple based on average Income Insight W2 score. An Income Insight W2 score is a numerical income rating verified by Experian. The Income Insight W2 score is a “comprehensive measurement of total income” that accounts for factors such as wages, rent, alimony, and investments. This is an important indicator of financial health in New York City neighborhoods because of its connection to wages and income.
Highest Mortgage Balances
The table below ranks all New York City neighborhoods based on average open mortgage balances. Experian defined the metric as the “average balance on open mortgage type trades reported in the last six months.” Neighborhoods with a higher average mortgage balance are typically areas where property is more valuable and expensive. For example, Manhattan dominates the top of this list because the cost of living there is much greater than the other four boroughs.
Highest Student Loan Balances
This table ranks New York City neighborhoods by average student loan balance. Those with a higher average student loan balance were placed closer to first place. This table shows the “average balance on open student trades reported in the last six months.”
It is entirely possible that neighborhood’s with higher average student loan balances could have more residents that went on to complete higher levels of education such as a Master’s or Law degree. Manhattan is seen often at the top of the list possibly because residents of Manhattan are paying more for rent and cannot focus on paying off student loans early.
>> Learn More: Average Student Loan Debt Statistics
Highest Credit Card Balances
The next table will provide you with a ranking of every New York City neighborhood by avg. credit card balance. Areas with higher average credit card balances were ranked closer to the top.
These values refer to the “average balance on open revolving bankcard trades reported in the last six months.” Evaluating the average credit card balances is important for a couple of different reasons. Higher levels of credit card debt could indicate that residents are more comfortable swiping their credit card with the confidence to pay it back later. On the other hand, it could mean that residents are relying on credit to get by and are, in fact, struggling as a result. A look at credit score would help sort out the uncertainty.
Highest Auto Loan Balances
The last table ranks New York City areas by average auto loan balance. Places that had a higher average balance on auto loans were placed higher on the list. This metric pertains to the “average balance on open auto loan and lease trades reported in the last six months.”
Even though New York City is not exactly a car-friendly environment, this statistic is still an important indicator of financial health. After some thought, Manhattan may not be seen at the top of the rankings because it is not as car-friendly as the other boroughs, and residents may not need cars or auto loans.
The data from this study came from Experian’s Premier Aggregated Credit StatisticsSM data set as licensed by LendEDU. Six metrics were used to define the finances of New York: Avg. VantageScore® 3.0; Avg. Income Insight W2 Score; Avg. Mortgage Debt Balance; Avg. Student Loan Debt Balance; Avg. Credit Card Debt Balance; Average Auto Loan Debt Balance. All metrics were broken out by ZIP CodeTM2. Some neighborhoods with certain ZIPTMcodes were eliminated because they pertained to PO Boxes, large buildings like the U.S. Citizenship and Immigration Services building, or airports; these ZIPTM codes were not included in the report. The other ZIPTM codes were matched with their corresponding boroughs and neighborhoods.
See more of LendEDU’s Research
1. VantageScore is a registered trademark of VantageScore Solutions, LLC.
2. Experian is a nonexclusive full-service provider licensee of the United States Postal Service. The following trademarks are owned by the United States Postal Service: ZIP and ZIP Code. The price for Experian’s services is not established, controlled or approved by the United States Postal Service.
Author: Mike Brown