Median months rent in manhattan was $800 in 2005 and first year analysts back then were easily pulling in $100k plus all in.
Fast forward to today and most banks have their new a1 starting salaries at $110k which is a 10% increase meanwhile an average 1 br in manhattan is $4k literally over 400% higher than it was back in the day. These new "inflated adjusted" salaries are a joke especially considering banks are making more money than in 2005. Its no wonder analysts aren't as motivated as they were before and VPs are complaining about their work quality.
I think the real inflation rate is much higher than whatever the fed says it is and banks should simply pay their fair share to their workers. God knows if I was a BB CEO, I would 100% mandate a $200k starting salary at my bank to send a message.
You have a point, but how can you compare 100k all-in comp from 2005 to the new 110k base only? base in 2005 was prob like 60k lol.
I've done this analysis and it was not 800 where are you getting data? I did location level analysis from 2008 vs 2022 and comp to rent ratio was about in line
"The study found that median household income in New York fell by 5.9 percent from 2001 to 2004 (from $33,900 to $32,000), whereas it was increasing from 1998 to 2001. At the same time as income was declining there was a 8.7 increase in the median monthly rent from 2002 to 2005 (from $782 to $850)."
https://gothamist.com/news/new-york-city-in-2005-rents-up-incomes-down
NYC median as a whole is pretty irrelevant. Not many people in IB are living in the Bronx or deep into Queens/BK.
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