The Federal Reserve Bank of New York has released a study on broadband affordability that underscores persistent equity gaps in urban areas.
Entitled “Broadband Affordability: Assessing the Cost of Broadband for Low-and-Moderate Income Communities in Cities,” the report shows that low- and moderate-income households allocate a larger share of their income to broadband than their wealthier peers.
On average, low- and moderate-income households spend 2.43% of their income on broadband, compared with 0.51% for households in higher-income areas, according to data cited by the study.
The analysis also notes that affordability gaps align with higher costs for utilities and rent, contributing to broader living-cost disparities in metropolitan areas.
In cities where broadband is less affordable, households are more likely to opt for slower or lower-quality plans, which can limit access to online services like jobs, education, and healthcare.
The report highlights a data gap in rural areas, stressing the need for localized pricing information to support digital inclusion across geographies.
Prepared by a Federal Reserve team focused on community development in the Second District, the study emphasizes that improving broadband access can open doors to employment, financial services, education, and health outcomes, and calls for enhanced data collection and policy responses to reduce affordability barriers.
