Yahoo Finance It Costs You Over $64,000 a Year To Live In New York City — Here’s Why
It’s said of New York City that if you can make it there you can make it anywhere, but in today’s economy, that platitude may apply more to your finances than ambition. This city so nice they named it twice may be known for its vibrant culture, iconic landmarks and unparalleled opportunities, but it’s also one of the most expensive places to call home. When it comes to the true cost of living in NYC or any of its surrounding metro areas, what’s your bottom line?
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Quick Take: The Cost of Living In New York City
The cost of housing, utilities, transportation, groceries and more all quickly add up when you put them into your cost of living calculator. Trying to figure out your monthly budget can be tricky when prices of everything seem inflated past your wallet’s breaking point, but to help you navigate this, GOBankingRates has figured out some estimates for common expenses.
Average annual housing costs: $32,539
Average annual cost of transportation: $9,4826
Average annual grocery bills: $6,650
Average annual utility bills: $6,846
Average annual cost of healthcare: $7,465
Other miscellaneous cost estimate: $1,741
Total annual expenditures: $64,726
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The Cost of Housing in NYC: $32,539
The most significant expense for New Yorkers is housing. Whether you rent or buy in Manhattan, Queens, Brooklyn, Staten Island or the Bronx, you aren’t likely to find a cheap option in any metropolitan area. Mortgage payments are exorbitant, but even if you rent, if it’s not stabilized, the cost of living adjustment could skyrocket from year to year.
The Cost of Transportation in NYC: $9,485
While NYC boasts one of the most comprehensive public transportation systems in the world, commuting is not free. A monthly MetroCard for unlimited rides on the subway and buses costs $132, totaling $1,584 annually. If you prefer taxis or ride-sharing services, your costs will significantly increase. Car owners face expenses like parking, insurance, gas and maintenance, easily adding up to hundreds more monthly, which adds up during the year.
The Cost of Groceries in NYC: $6,650
Grocery prices in NYC are notably higher than the national average. A single person might spend over $500 on groceries a month, translating to over $6,000 annually. Dining out, a common practice in a city with over 24,000 restaurants, can quickly add to your expenses. Even modest dining out can cost around $250 per month, or $3,000 annually.
The Cost of Utilities in NYC: $6,846
Utilities, including electricity, heating, cooling, water and garbage, can add up to hundreds of dollars a month. If you add extra luxuries or necessities such as high-speed internet, your bill only increases. On average, residents of New York City pay around $570 a month for utilities.
The Cost of Healthcare in NYC: $7,465
Healthcare is another considerable expense. Even with employer-sponsored insurance, out-of-pocket costs often are more than you want or even expect to pay. The average annual cost for healthcare, including insurance premiums, co-pays and prescriptions, comes in at over $7,000.
Miscellaneous Costs in NYC: $1,741
New York City offers endless entertainment options, from Broadway shows to concerts, museums and sporting events. Residents typically spend big bucks on entertainment and leisure. Additional expenses, such as clothing, personal care and miscellaneous items, can easily add more to your annual budget.
Final Take To Go: It Costs $64,726 a Year To Live In NYC
When you add up all of your main expenses, such as housing, food, transportation and more, the annual cost of living in New York City exceeds $64,000. Considering additional unexpected costs or slight variations in spending, living comfortably in NYC indeed requires an income well over the national average.
The city’s allure is undeniable, but so is the financial commitment required to thrive here. For many, the benefits outweigh the costs, making New York City an irreplaceable and invaluable experience worth every penny.
For the methodology for this study, GOBankingRates defined the minimum emergency savings needed in every state as the amount needed to afford 3-6 months’ living expenses. Using the top 100 cities by population as sourced from the U.S. Census American Community Survey, the cost of living indexes as sourced from Sperlings BestPlaces can be found. Using only the necessary expenses from the Bureau of Labor Statistics Consumer Expenditure Survey; including groceries defined as “food at home”, housing defined as “shelter,” Utilities defined as “utilities, fuels, and public services,” Transportation defined as “gasoline, other fuels, and motor oil” + “other vehicle expenses,” Healthcare and Miscellaneous. Using the cost of living index and the average expenditure cost the one-month expenses can be calculated and extrapolated for three to six months. This estimate captures the minimum emergency savings needed in the top 100 US cities to cover basic expenses for three to six months. All data was collected and is up to date as of Jan. 19, 2024.
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This article originally appeared on GOBankingRates.com: It Costs You Over $64,000 a Year To Live In New York City — Here’s Why
