Cost of Living in New York

New York City is a beautiful city located on the east coast of the state, offering access to a number of appealing amenities and landmarks. If you’re thinking about moving to this area, understanding the cost of living can help you make a decision and plan for your relocation. Let’s break down your expenses and what it will cost you to live in “The City That Never Sleeps”

We’ll give you a breakdown of the highlights of cost of living in “The Big Apple”. 

• Housing 
• Transportation
• Utilities
• Food
• Taxes
• Misc. expenses
• Income & job market
• Entertainment

Housing costs in New York

New York City is the largest city in the state of New York and is made up of five boroughs: Manhattan, the Bronx, Staten Island, Brooklyn, and Queens. The average cost of living in Manhattan is generally the highest of the five boroughs, and much of that cost comes in the form of housing. The price of living in New York is 187% of the national average, with housing coming in at nearly 300% of the national average.

Rent for a one-bedroom apartment in New York costs around $3,100 a month and a two-bedroom apartment rental is approximately $3,310 monthly. While rent in New York fell nearly 20% since March 2020, it is now rebounding and rents are increasing.

Transportation costs

When you live in Manhattan or one of the other boroughs, you don’t need a car to get around. The public transportation system is one of the largest in the nation, offering access to just about anywhere you need to go via the various subway and bus lines. Parts of the city are also ideal for foot traffic, so you may be able to get around on your own two feet for free.

NYC’s subway system offers a MetroCard, which riders use to pay each time they ride on the subway. You can choose from pay-per-ride MetroCards and unlimited MetroCards. A one-month unlimited card currently costs $127, while a single trip costs $2.75. New York City residents who fall under a certain income threshold may qualify for the Fair Fares program to receive discounted rates.

Owning a car in New York City is expensive, mainly due to the high costs associated with insurance and parking. The average monthly parking cost in NYC is $570, while the average car insurance premium is $1,582 per year. Heavy traffic also makes it difficult to get around in the city in your own vehicle. Public transportation, taxis, and walking or biking are the best ways to get around if you’re living in the city.

Utilities in New York

Utilities are also more expensive in New York than in other parts of the country. A New York City resident will pay an estimated average of $162 per month in electricity, water, heating, and garbage costs for a 900-square-foot apartment. High-speed internet access at home may add another $66 on average to your monthly New York utilities cost.

Food costs

Grocery costs in New York City come in above the national average. According to Numbeo, consumer prices are about 24% higher in NYC than in Chicago, and a gallon of milk in NYC costs about $4.51, while a dozen eggs cost about $3.51.

Dining out is more expensive in the city, as well, with prices coming in about 28% higher than what you’d spend to eat out in Chicago or another comparable metro area. You can find affordable, casual dining joints, but many of the restaurants charge higher prices to accommodate for the high rent prices they have to pay to maintain a brick-and-mortar eatery. The average cost for a meal for two at a mid-priced restaurant in NYC is $80.

Taxes

New York City is one of the few cities in the U.S. that has a personal income tax, which is an important consideration when moving to the city. The combined sales tax is 8.88%, with N.Y. state sales tax at 4%, New York tax at 4.5%, and a special tax of .38%.

Other expenses to consider in New York

In addition to New York’s above-average cost of living, there are many expenses that can arise because the city has so much to offer. From fitness centers and special clubs to food, entertainment, and all types of attractions, many expenses can arise if you want to participate in the city’s endless activities.

Income and job market in New York

The average salary in New York is $63,062 per year and some of the top companies to work for in the city include IBM, Bank of China, Healthfield Operating Group, and Deloitte.

Entertainment

New York City is known for its fascinating attractions and rich history, so you can always find something to do. After all, it’s the city that never sleeps! But this can translate to higher leisure and entertainment costs, especially if you want to catch a Broadway show or sample the finest cuisine the city has to offer. 

You can find budget-friendly activities and attractions, like parks and public museums, and take advantage of discounted opportunities. For example, here are some cost of entry for various NYC attractions:

• The Metropolitan Museum of Art: For New York State residents and New York, New Jersey, and Connecticut students, the amount you pay for admission is up to you and donation based. For all other visitors the cost of admission is as follows: $25 adult, $17 seniors (65 and over), $12 students, and free for children under 12. 
• Broadway show: The cost of admission varies by show popularity, date, and seat location, however many shows offer a lottery system at the box office where you can enter for a chance to purchase tickets at a reduced price. On average you can expect to spend around $100-$200 for a regular non lottery admission ticket. 
• Tenement Museum: For adults, seniors and students the cost is $30 per admission.
• Empire State Building: 86th floor observatory – $42 adult, $36 child, $40 senior. 102nd and 86th floor observatory- $75 adult, $69 child, and $73 senior.
• American Museum of Natural History: Similar to The Met, this museum operates under the “pay as you wish” ticket price system for all visitors who are New York State residents and New York, New Jersey, and Connecticut students. Cost of admission for all other visitors is $25 for adults, $17 for seniors, and $12 for students. 

Sports fans can also root for the various home teams in New York. Pro sports teams include The New York Giants, The Jets, The New York Knicks, the Yankees and the Mets, and the Rangers. 

Although the price of living in New York is higher than in other areas, many residents agree that access to rich cultural surroundings, world-class dining and nightlife, and the overall energy and vibe of the area make it worth the added cost. You may also be considering a move to New York City if you have a job opportunity that you can’t pass up.