What Is the True Cost of Living in New York City? - SmartAsset (2023)

What Is the True Cost of Living in New York City? - SmartAsset (1)

It’s no secret that living in New York City is expensive. Before the average NYC resident’s paycheck even reaches the bank, they’re shelling out some of the highest income taxes in the country, with high taxes on both the state and local level. Beyond that, prospective residents face some of the least affordable housing in the country. That’s particularly true for NYC residents who want to be in the heart of it all and live in Manhattan.

Cost of Renting in New York

The high cost of living in NYC starts with its crazy housing market. According to Apartment List, the median rent for a two-bedroom apartment is $6,191 in New York City. Studio and one-bedroom apartments come in at $3,295 and $4,331 a month, respectively.

(Video) SmartAsset: Answers to Financial Questions -- for Free

Each of these rents are far more expensive than not only the U.S. median, but most of the world’s large cities. As of March 2022, the national median rent for studios, one bedrooms and two bedrooms was $1,101, $1,139 and $1,306, respectively. That’s a $2,194 difference for a studio apartment, a $3,192 deviation for a one-bedroom apartment and, lastly, a $4,885 split for a two-bedroom apartment. Needless to say, New York is breath-takingly expensive to rent in. The following prices are from ApartmentList.com.

Average Monthly Rent: New York City vs. Major U.S. Cities
Type of unit New York City Philadelphia Washington, DC Boston Los Angeles
Studio $3,295 $1,505 $1,895 $2,781 $2,181
1 Bedroom $4,331 $1,939 $2,536 $3,357 $2,983
2 Bedroom $6,191 $2,452 $3,637 $4,094 $4,090

Cost of Buying a House in New York City

The classic dilemma of “buy vs. rent” always comes up regardless of where you’re living. In the case of New York City, a single-family home in the New York metro area has a median sales price of $403,900, based on 2018 data from the National Association of Realtors. While this might sound favorable, remember that the metro area consists of not only New York City proper, but also the nearby areas that surround it. Buying in the city itself can be much pricier, especially if you want to live near the city center; it’s not unheard of to spend more than $1 million for a one-bedroom apartment in Manhattan. Mortgage rates, however, tend to mirror those available in other major cities. (If you want to know how much house you can afford, stop by SmartAsset’shome affordability calculator.)

One major advantage of the New York City housing market is its strong appreciation rates. From 2019 to the fourth quarter of 2021, the overall housing market appreciated 41%. The table below is based on data from the National Association of Realtors for the fourth quarter of 2021.

Median Single-Family Home Prices: New York City vs. Major U.S. Cities
City/Metropolitan Area Median Price Change (2020 Q4 to 2021 Q4)
New York-Newark-Jersey City $566,800 +12.8
Phildelphia-Camden-Wilmington $306,600 +8.5
Washington(DC)-Arlington-Alexandria $537,400 +11.1
Boston-Cambridge-Newton $635,700 +9.8
Los Angeles-Long Beach-Glendale $797,900 +15.9

Cost of Utilities in New York City

Whether you rent or buy, you’ll have to cover the cost of utilities.According to Numbeo.com data, in March 2022 the average basic utilities package for a 915 square-foot place in New York costs $170.01. That includes heating, electricity, water and garbage and is about what the U.S. average is for a month of basic utilities ($170.09).

(Video) The DANGERS of an Income Share Agreement (ISA) / What you SHOULD KNOW before!

The monthly cost of internet in New York is about the same as the rest of the country. In March 2022 you would have paid an average of $65.26 compared to a U.S. average of $67.01.

Cost of Transportation in New York City

After housing, the No. 1 expense for most Americans is transportation. For car owners, that’s the cost of buying, maintaining, insuring, fueling and storing their vehicle. If you use public transit, you’ll be on the hook for a transit pass, and possibly parking, if you need to drive to pick up the bus or train.

For car owners in New York, parking will be a significant expense. According to one study, the average monthly cost to park in Midtown Manhattan (the most expensive place to park in the city) in 2021, was $562. That contrasts with about $167 per month as the average monthly cost of parking in the U.S.

(Video) Budget!!! Part 2 - Texas Paycheck Calculator - SmartAsset

In addition to parking, the price of gas in New York is often higher than the national average. GasBuddy data from March 2022 shows gasoline ranging from a low of $4.09 per gallon in Staten Island to a high of $5.59 per gallon in Manhattan. According to AAA, the average U.S. retail price for regular gasolin was $4.25 at the end of March 2022. Car insurance in New York City is $1,582; nationally the average is about $1,483, according to thezebra.com.

If you’re okay with giving up your car, New York’s public transit system is one of the best – although perhaps not the safest – in the country. But like everything else in the Big Apple, it’s one of the most expensive. A monthly transit pass in New York costs $127 per month. For a directcomparison, consider this: monthly transit passes in Los Angeles and Chicago cost $100 and $105, respectively.

Cost of Food in New York City

According to Numbeo.com data from March 2022, groceries in New York City usually cost about $486.71 a month, per person. For the U.S. as a whole, the average is $348.34. Of course, New York City is famed for its restaurant scene, and those who choose to dine out regularly will see their food budget soar.

There are a number of reasons that contribute to why food and produce is so expensive in New York City. Perhaps the strongest consideration is that the companies that sell the food are forced to pay much more for commercial leases and workers’ wages than in other parts of the country. Delivering food can also be especially difficult in Manhattan, as it’s a densely populated island.

(Video) SmartAsset.com Mortgage Calculator w/ Sliders and Eye Candy

Cost of Entertainment in New York

What Is the True Cost of Living in New York City? - SmartAsset (2)

If you have any money left after paying for housing, transportation and food, then you may want to try and enjoy yourself. Well, it’s going to cost you. For movie buffs, the average price of admission to a movie in Midtown is $15.25,according to ValuePenguin.

New York is famous for its sports teams, too. If you were looking to catch a Brooklyn Nets or New York Knicks game, your tickets in 2022 would have ranged from $68 to nearly $500. Baseball fans can check out both Yankees and Mets games. The cost during the 2022 season of a ticket to Yankee Stadium on the Main Level ranges from $50 to $150.

Broadway show tickets range from $20 to $145. Meanwhile, New Yorkers do have at least one option for cheap entertainment. On a typical weekend night, subway platforms across the city become stages for all kinds of musical performances. Whether you like classical, jazz, hip hop or the blues, there’s bound to be something you enjoy.

(Video) Saagar Enjeti Repeats Tax Falsehoods I've Debunked (Re: Biden, Obama and Clinton Taxes) @The Hill

Tips for Your Move to New York City

  • Managing the high cost of living in New York City is easier with the help of a financial advisor.Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • For more information about the financial advisor scene in the city, check out SmartAsset’s list of thetop financial advisor firms in New York City.
  • Moving to New York City is stressful enough on its own. You won’t want to worry about how easily you’ll be able to access your money. Here are a few banks in the Big Apple to check out:Quontic Bank,NBT Bank,Shinhan Bank America,Signature Bank andMetropolitan Commercial Bank.

Photo credit: ©iStock.com/Beboy_ltd, ©iStock.com/stu99

Nick Wallace Nick Wallace studied Economics at the University of Washington. He enjoys getting people thinking about finances by looking at the numbers. Nick is a freelance journalist and data analyst living in Michigan. He still lends his economic and analytic expertise for SmartAsset's studies.

FAQs

What is the true cost of living in New York City? ›

New York cost of living is 168.6
COST OF LIVINGNew YorkUSA
Health127.6100
Housing224.3100
Median Home Cost$654,300$291,700
Utilities150.5100
4 more rows

What is the cost of living in New York City 2022? ›

The cost of living in New York City, NY is 26% higher than the state average and 95% higher than the national average. New York City, NY housing is 258% more expensive than the U.S average, while utilities are about 2% pricier.

What salary do you need to live comfortably in NYC? ›

A survey from Purdue University and GoBankingRates found that you need a minimum annual salary of $155,610 to be happy in New York, citing the Empire State's "empire-sized costs of living." The authors say, "With the average New York resident shelling out $50,610 more than the national average.

What is the cost of living in New York City 2021? ›

A single person estimated monthly costs are 1,414$ without rent. New York is 28.27% more expensive than Los Angeles (without rent). Rent in New York is, on average, 43.44% higher than in Los Angeles.

What is average salary in New York City? ›

What Is the Average Salary in New York City?
Income Figures for New York City
TypeIncome Amount
Average Income$107,000
Median Income$67,046
Per Capita Income$41,625
Aug 31, 2022

Is living in NYC worth it? ›

Pros and Cons of Living in NYC (Worth It?) - YouTube

How do people afford to live in NYC? ›

How Do People Afford To Live In NYC? (10 Ways)
  1. Secondary Jobs. Some people might find that living in New York City takes too much from their income. ...
  2. Public Transport. ...
  3. Roommates. ...
  4. Rent-Controlled Apartments. ...
  5. Higher Salaries. ...
  6. Affordable Grocery Stores. ...
  7. Living Just Outside The City. ...
  8. Stick To Affordable Or Free Events.
Aug 9, 2022

How can I live cheap in NYC? ›

To find out how to save money in NYC, and how to live frugally in NYC, use these best NYC lifestyle tips and hacks.
  1. Always walk.
  2. Get a CitiBike membership.
  3. Even better, get a bicycle.
  4. Take the subway, or a bus.
  5. If you have to take Uber or Lyft, share with a friend.
  6. Always buy groceries at budget grocery stores.
May 27, 2022

What is the average monthly rent in New York City? ›

New York City rents have declined 0.9% over the past month, but have increased sharply by 12.1% in comparison to the same time last year. Currently, median rents in New York City stand at $2,106 for a one-bedroom apartment and $2,224 for a two-bedroom.

What is considered upper middle class in NYC? ›

In NYC , a combined income husband and wife of 500k is the start of upper middle class. 500k *1-40% tax rate - 310,000 k per year or 20k a year on restaurants, 20k for groceries, 50k for nanny, 60,000 for rent, 40k for school for two kids private/cheap private.

Do you have to make 40 times the rent in NYC? ›

In certain cities (especially New York), property management companies require you to have an annual salary of 40 times the rent in order to be approved as a new tenant. That may be way more than your pay stub will ever show.

Can you live in NYC on 40k a year? ›

That's $30,294 per year after taxes, which means that to live a reasonably comfortable life in New York City, a single person would need to make a salary of roughly $40,000 per year. This is a comfortable (though far from indulgent) budget.

What is the most expensive city to live in the US? ›

1. Manhattan (New York City) As of July 2022, the city's unemployment was 6.6%, a slight increase from the previous month and a drop from July 2021's unemployment rate of 10.1%.

What is the average rent in NYC 2022? ›

Average Rent in New York, NY
MonthMedian Rent
October 2022$3,872
September 2022$3,947
August 2022$3,953
July 2022$3,884
92 more rows

Can you live in NYC on 50k a year? ›

I definitely think you can live comfortably on a salary of $50,000, even in New York City,” says Haskins. “It's an expensive city, but I think if you know where your money is going and you recognize what your priorities are, it's totally doable.”

What is a middle class income in NYC? ›

In New York City, a middle class income is considered between $61,000 and $180,000 for a household of three. Does it make sense to classify all of these income ranges as middle-class?

What is considered rich in NYC? ›

The financial firm Charles Schwab surveyed 500 New York residents about their wealth in May 2022. Local respondents said you need $1.4 million to be "financially comfortable" in the New York area. To be considered "wealthy," you need $3.4 million — over one million more than the national average.

What is a good salary for 2022 in NYC? ›

The 2022 AMI for the New York City region is $120,100 for a three-person family (100% AMI).

Where is the cheapest place to live near NYC? ›

Top 8 Cheapest Places to Live Near NYC
  • New Rochelle. Coming in at number one on our list of cheapest places to live near New York City is New Rochelle. ...
  • Stamford. ...
  • Maplewood. ...
  • Yonkers. ...
  • Port Washington. ...
  • Larchmont. ...
  • Greenwich.
Nov 16, 2021

Can you live in NYC on 50k a year? ›

I definitely think you can live comfortably on a salary of $50,000, even in New York City,” says Haskins. “It's an expensive city, but I think if you know where your money is going and you recognize what your priorities are, it's totally doable.”

How do people afford to live in NYC? ›

How Do People Afford To Live In NYC? (10 Ways)
  1. Secondary Jobs. Some people might find that living in New York City takes too much from their income. ...
  2. Public Transport. ...
  3. Roommates. ...
  4. Rent-Controlled Apartments. ...
  5. Higher Salaries. ...
  6. Affordable Grocery Stores. ...
  7. Living Just Outside The City. ...
  8. Stick To Affordable Or Free Events.
Aug 9, 2022

How much does it cost to live in New York City per month? ›

What Is the Average Cost of Living in New York? The average cost of living in New York per month for a family of four is $ 7,800, and that for a single person is $ 5,300. Furthermore, the approximate cost of living in NYC for a student is $ 6,800.

How can I live in NYC for cheap? ›

To find out how to save money in NYC, and how to live frugally in NYC, use these best NYC lifestyle tips and hacks.
  1. Always walk.
  2. Get a CitiBike membership.
  3. Even better, get a bicycle.
  4. Take the subway, or a bus.
  5. If you have to take Uber or Lyft, share with a friend.
  6. Always buy groceries at budget grocery stores.
May 27, 2022

Where is the cheapest place to live near NYC? ›

Top 8 Cheapest Places to Live Near NYC
  • New Rochelle. Coming in at number one on our list of cheapest places to live near New York City is New Rochelle. ...
  • Stamford. ...
  • Maplewood. ...
  • Yonkers. ...
  • Port Washington. ...
  • Larchmont. ...
  • Greenwich.
Nov 16, 2021

What is the average rent in New York City? ›

New York City rents have declined 0.9% over the past month, but have increased sharply by 12.1% in comparison to the same time last year. Currently, median rents in New York City stand at $2,106 for a one-bedroom apartment and $2,224 for a two-bedroom.

What is the minimum wage in NYC? ›

YearReal New York state min. wage (2021$)
2017$11.49
2018$11.98
2019$12.51
2020$13.08
75 more rows
Jun 8, 2022

Can you live in NYC on 40k a year? ›

That's $30,294 per year after taxes, which means that to live a reasonably comfortable life in New York City, a single person would need to make a salary of roughly $40,000 per year. This is a comfortable (though far from indulgent) budget.

Can you live in NYC on 45k a year? ›

With the same $45,000 salary, you could live in New York, one of the most dynamic and expensive cities in the nation. In the Big Apple, the median household income is $51,000, so you're already $6,000 behind. The average rent in New York is $3,000 per month.

Why are rents so high in NYC? ›

It sounds illogical to say that there's a housing shortage in the largest city in America, but there is. More people want to live here than the city can hold, and that has driven up prices for the available apartments and houses.

Why is it so expensive to live in New York? ›

Limited Supply

There are only a certain number of homes, apartments, and buildings, and most of the land is occupied in the city. Since there is only so much of New York to go around, it is hard to give everyone a piece. Therefore, the prices go up, and it gets more expensive to live in New York.

How much is a meal in New York? ›

Prices in restaurants in New York City.
Meal in a cheap restaurant25 USD (12-40)
Meal for 2 People, Mid-range Restaurant, Three-course100 USD (70-200)
McMeal at McDonalds (or Equivalent Combo Meal)10.00 USD (9.80-12)
Domestic Beer (0.5 liter draught)8.00 USD (5.00-12)
Imported Beer (0.33 liter bottle)9.00 USD (6.00-12)
5 more rows

How much is a gallon of milk in New York City? ›

For many milk is a grocery staple. However, depending on where you live, the cost can fluctuate dramatically. According to the USDA, the average gallon of whole milk is $3.59 a gallon.
...
Average Price Of Milk In Every State.
StateCost
New Hampshire$2.69
New Jersey$2.83
New Mexico$2.09
New York$1.97
46 more rows
Aug 25, 2022

What part of New York has the cheapest rent? ›

Riverdale, Bronx

It's one of the most affordable yet beautiful neighborhoods to rent an apartment in. Most apartment buildings in this neighborhood tend to be co-op and condo buildings. However, it is possible to find rentals among these as well as a few rental buildings.

Where is the safest place to live in NYC? ›

Tribeca. The safest neighborhood in New York City is Tribeca. Located in southern Manhattan along the banks of the Hudson River, Tribeca sits in one of the most prominent parts of Manhattan for the rich and famous.

Where is the cheapest place to buy a house in New York City? ›

The most affordable neighborhoods in NYC for 2022 are the Bronx's Parkchester, Bedford Park, and Fieldston as well as Lindenwood and Briarwood in Queens. Median sales prices are under $300,000 in each of these NYC neighborhoods.

Videos

1. DON'T MOVE TO NYC
(Clean Your Room)
2. Why $100,000 isn't Enough in New York
(The Life Formula)
3. How does Dallas Compare to other Cities Nationally on Millennials Moving to the Area?
(Michael Kawa)
4. How Robin got burned with Smartassets (pay for lead service)
(Lux Sales Consulting)
5. Retirees are flocking to these 'hot' spots
(YT Night News)
6. How Much Does It Cost To Live In Georgia [Georgia Costs vs National Average]
(Legends Realty Group)
Top Articles
Latest Posts
Article information

Author: Clemencia Bogisich Ret

Last Updated: 01/10/2023

Views: 5849

Rating: 5 / 5 (60 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Clemencia Bogisich Ret

Birthday: 2001-07-17

Address: Suite 794 53887 Geri Spring, West Cristentown, KY 54855

Phone: +5934435460663

Job: Central Hospitality Director

Hobby: Yoga, Electronics, Rafting, Lockpicking, Inline skating, Puzzles, scrapbook

Introduction: My name is Clemencia Bogisich Ret, I am a super, outstanding, graceful, friendly, vast, comfortable, agreeable person who loves writing and wants to share my knowledge and understanding with you.