Median asking rent in Manhattan rises over $5,300 a month, study finds

The housing market for renters and buyers in New York City is more brutal than ever, according to a newly released rate report.

Low inventory and high demand is causing rents to soar to record highs.

According to a study by Realtor.com, the median asking rent in Manhattan is now $5,375 per month, an 8.3% increase over last year.

Realtor.com senior economist Jake Krimmel says a yearly income of $215,000 a year is now needed to afford median rent for an apartment.

"I think this is the trade-off that everybody is always facing of rent versus how much income they can make," he said, "and the good thing about New York is that it's still creating jobs, income growth is still up."

Krimmel says apartments in other parts of the five boroughs might be more affordable to the average renter.

"You can still take advantage of the hot job economy, and the nightlife and the entertainment that comes with living in New York City," he said.

Some renters are saving up to buy a home, but many told CBS News New York rising costs are keeping that dream out of reach.

Realtor.com's study found buying a median-priced home in New York City now costs nearly $7,000 more per month than renting.

"People shouldn't be in this position," Midtown resident Sloan Seaborn said. "Something has to change."

Ollie Muhl said his recent move to New York from Los Angeles was exciting, but financially stressful.

"It took me two and a half months of couch surfing," he said. "I'm paying too much right now for sure ... I'm constantly looking for a better deal just in case."

Even so, some say the costs aren't going to drive them away.

"I'm not leaving," Seaborn said.

In the meantime, renters and would-be buyers are left wanting and waiting for more and better inventory to end the nonstop searching and bidding wars.