What is the Cost of Living in NYC in 2023?

NYC’s population of close to 8.5 million people is a testament to its popularity as a sought-after destination. The city serves as a core for finance, media, culture, not to mention art, culture, fashion, education, and technology, among a host of other industries! While there are reasons galore for people to move to the city, they need to brace themselves for the exorbitant living costs. So, regardless of how much you earn and save, you’ll feel the burden of living a comfortable life, especially if you’re moving from states like Portland or Oregon. Those moving from San Francisco or LA won’t feel the difference because you’re used to the high living standards associated with the cities you lived in.

So, city perks and attractions aside, your decision to move to the city depends on your earnings and how much you can dish out toward rent and utilities, among other expenses. Therefore, we’ve compiled a list to give you an idea of the types of costs you must set a budget for.

Here is everything you need to know about the cost of living in NYC:

1. Rental Expenses in NYC

As with all cities, rental prices differ neighborhood-wise. Since NYC comprises five boroughs, the prices vary for each and the neighborhoods that each borough houses. Those who decide to live in the city will spend 187% of the national average. Also, housing costs will comprise 300 percent of it!

Considering that Manhattan is the priciest borough, a one-bedroom apartment will cost twice as much as one in the Bronx. As far as the numbers go, the average rental prices in Manhattan, Brooklyn, Queens, the Bronx, and Staten Island for one-bedroom apartments according to this report from RentCafe amount to $4,140, $3,080, $2,683, $1,628, and $1518, respectively. In other words, while Manhattan is the most expensive borough in NYC, Queens, the Bronx, and Staten Island are the reasonably-priced ones. They might take you away from the city’s center, but will help you save some money.

The global pandemic has been instrumental in causing a dent in rental prices. However, the real estate market is picking up again, though it might be a while before the prices increase to earlier rates. So, should you decide to move to NYC and look for a house or room for rent now, you might just get lucky! In terms of upscale NYC neighborhoods, there’s East Village ($4,098), and Lincoln Square ($5023). On the other hand, affordable communities include Rockaway ($1,646), Brooklyn ($3080), and East Bronx ($2725). So, take your pick based on your affordability.

A wise option for living in a city like NYC is to find a roommate to split expenses with. At the same time, make sure you vet your potential roommates carefully and choose one who’s financially sound and responsible.

2. House-buying expenses in NYC

Going by the rental prices in NYC, it’s a given that the house-buying prices in the city aren’t low. So even if you think you have the finances to afford a house in NYC, you should focus on saving money by living with roommates and investing in a place when you’ve saved enough!

According to the National Association of Realtors’ data from 2018, the median sales price for a single-family home in the city is $403,900, which seems fair. Property prices at the city’s heart are bound to be high, so if you want to live at NYC’s core, you have to be prepared to pay a bomb.

For instance, should you want to invest in a property in a premier Manhattan neighborhood like NoHo, you need to fork over around $4.3 million! If you’re looking for something a little more economical, Manhattan is off-limits because even low-key communities in the area sell for $1.2 million on average!

3. Food and Grocery Expenses in NYC

What’s your favorite food? Pizza? Burgers? You can find anything you crave in NYC because it’s a hub for numerous traditional cuisines. While eating out is an option, what you eat and the frequency with which you eat outside will determine how much your savings will take a hit. So, it’s wise to set a budget so that you don’t end up going overboard on food and grocery expenses.

Dining at a medium-priced restaurant with someone can cost you $100 if you choose to have at least three courses. You’ll end up spending 28% more than what you might pay in Chicago or other metro cities. Restaurants charge higher prices to meet the excessive rental costs of these structures and workers’ wages. But don’t fret because you’ll still find reasonably-priced eateries that are more in line with your budget.

When it comes to low-cost food, NYC doesn’t disappoint. The city’s peppered with food stalls and carts selling different items. For example, the combo meal comprising a hot dog with soda and chips comes at a reasonable $5. But you may not want to make it a daily affair because while fast food is yummy, it’s far from healthy!

The prices of grocery items also exceed the national average by 48.1%. In fact, a dozen eggs are priced at $3.25, while a gallon of milk totals $4.51 per Numbeo’s data. As you may have already guessed by now, these items are pricey. Now, where will you find quality groceries? You can choose from Aldi and Wegmans, depending on your budget. If you want an affordable place, Aldi is where you should be. But if you’re looking for something fancier, head over to Wegmans, which NYC residents love and frequent!

4. Utility Expenses in NYC

NYC experiences extremely cold and warm temperatures during winters and summers, respectively. But the silver lining is that the amount residents end up spending on utilities totals 1.7% below the national average! Of course, that doesn’t indicate that utilities are cheap! Utilities such as water, gas, and electricity in the city require you to pay $273.04 per month and $3,276.48 annually. Per Numbeo’s data, if you live in a 900-square-foot-apartment, you’re likely to fork over $168.07 that would cover water, electricity, heating, and trash.

Additionally, internet and cell phone services need to be included under utilities. People pay $94 per month for their cell phone services and an additional $65.46 for internet services. So, over and above your usual utility bills, ensure that you have the funds to pay an extra $139. As far as internet services are concerned, let us also add that around 83% of NYC residents use fiber for higher internet speed, so they dish out around $150 monthly.

5. Travel Expenses in NYC

Thanks to the public transit system in NYC, it’s easy to commute anywhere in the city. It’s among the most extensive of all transportation systems in the country and offers a host of subway and bus lines for residents that run throughout the day and night. The Metropolitan Transportation Authority (MTA), the central transportation system in the city, is the primary reason many residents don’t take on the hassle of buying and maintaining a car.

Some city portions are pretty walkable too, so you can reach places on foot and get some exercise in the process! NYC is bikeable as well, so buying or renting a bike and navigating your way across the city is an option worth exploring. And before we forget, you can also access ride-sharing services such as Lyft or Uber if you want to avoid public transit occasionally.

To ride on the subway, you need a MetroCard, and you can opt for pay-per-ride MetroCards or unlimited ones. A one-way ride will cost you $2.75, and a seven-day pass will require you to pay $33. You’ll need to spend $127 for an unlimited card that lasts for 30 days. If you use it throughout the year, you need to pay $1,524 and can take the subway or buses as many times as you want! Those with low incomes may receive discounts should they be eligible under the Fair Fares program.

Owning a car in a city like NYC is challenging due to high parking and insurance costs. A car owner can be expected to dish out 570 on average for parking every month. Also, car insurance premium takes up $1,582 annually. Gas prices are another financial constraint and are higher than the national average, for the most part. Data from GasBuddy in 2019 states that the price of a gallon of gas is $3.08 while the national average is $2.89, so though the difference is minimal, it’s still there.

Statistics reveal that you’re likely to pay $4,332 per year on transportation. If you have a family consisting of four members, you need to pay $11,773 per year! So, accessible and comfortable travel alternatives include walking, biking, taxis, and last but not least, public transit options. In fact, a considerable chunk of the city population uses them to save as much money as possible.

6. Healthcare Expenses in NYC

The importance of healthcare expenses can’t be overstated, so when you budget your expenses be sure to include healthcare costs because you never know when you might need them. Unfortunately, these expenses are unpredictable and come up when you least expect them. NYC houses several hospitals to serve its residents based on the areas they reside in, with the more noteworthy ones being New York-Presbyterian, Lenox Hill, and Mount Sinai.

As a single resident, you’d need to dish out $2,935 per year if your insurance policy is company-sponsored. On the other hand, if you have a family consisting of four members, $7,153 is what you need to pay. In other words, an NYC resident will end up spending 9.8% more than the national average. Visiting a doctor’s clinic will cost you $163. Finally, if you need to buy prescribed medicines but don’t have insurance, be prepared to pay $442.91!

One thing that stands out about NYC’s healthcare scene is the number of free or economical options available to people who may find it difficult to afford the high fees. The Health Department portal of the city also has healthcare and insurance options for residents, while Healthcare.gov shares information on securing private insurance and plans that meet your budget and requirements.

7. Entertainment Expenses in NYC

Entertainment and exercise are two ways you can stay happy and healthy. So, let’s look at how you can do that without spending too much! Singles spend $1,365.24 per year on fitness and recreation.

If you need a gym to work out, make sure you have around $113.77 to spend per month on a gym membership. But you might need to spend $20.49 per class if you prefer yoga.

Working out at home is undoubtedly cheaper with apps like Peloton, which won’t cost you more than $12.99 monthly. So, weigh your options and check your finances before taking up anything. Another expense-free option for fitness is to spend time at parks, and NYC has hordes of them (1700, to be exact)! Soaking up the sights and sounds at a park can also be a source of quiet entertainment. Since we’re talking about free entertainment options, don’t forget the NYC subway on weekend nights. If you like music of any kind, you’ll be more than entertained on the subway platforms. Check it out!

Let’s explore some entertainment options. Are you into sports? If so, NYC offers lots of opportunities for you to enjoy games played by multiple sports teams. But you’re going to need a substantial amount of money to pay for the tickets depending on the game you’re watching. For instance, a Knicks game will cost you $98; a Mets game will be 59, while a Giants game will require you to dish out 123!

Additional entertainment options include visiting the numerous museums the city is home to. Even if art or culture doesn’t interest you, you can always gain exciting experiences and knowledge. Some notable museums include the Museum of Modern Art, the Guggenheim, and the Met, and they all charge $25 for admission. If you’re looking to spend a little less, you could gather more information on the days the museums charge a lower fee or keep it free. Finally, if you’re a cinephile, you might need to spend $15.5 to catch a movie in Midtown.

8. Income requirements in NYC

NYC is a dream destination for most, but you must also think practically about how financially sound you are to afford the expenses and live comfortably. To begin with, it’s important to earn an income (gross income) at least three times higher than the rent of a house or room.

Let’s take Manhattan, for instance. A one-bedroom apartment of $4,140 would need you to earn $12,420 per month. If the Bronx seems like a far more reasonably-priced option, three times the rent of $1,628 will amount to $4,884. While individual landlords might not expect you to earn more than three to four times the rent they charge, property management companies in the city might set the bar too high and expect you to make 40 times the rent! So check the guidelines carefully before filling out a rental application form and submitting it. Finally, on average, residents in NYC earn around $65,905 per annum.

9. Taxes in NYC

In NYC, the sales tax rate is a mix of the state sales tax and city sales tax rates and stands at 8.8%. If we break it down, the state sales tax rate is 4%, while the city sales tax rate is 4.5%, and the remaining 0.38% is a special tax rate. The sales tax rate might differ depending on the commodities purchased and their prices.

As far as the state income tax is concerned, you might have to pay between 4% to 10.90% based on your pay. To sum up, you’ll also have to pay the city’s income tax, which could be anywhere between 3.078% to 3.876% based on your monthly earnings.

Conclusion

So, are you all set to start living in NYC? We’re counting on it! While the thought of living in a city as expensive as NYC may be daunting, setting a budget not only for rent and utilities but also for food, transportation, and entertainment expenses will go a long way in preventing you from overspending. Needless to say, they’ll also help you get into the practice of saving money for the future.