Yahoo Finance ‘What a steal!’: YouTuber skewers NYC with tongue-in-cheek video about the 'affordable' costs of living
With its iconic skyline, vibrant culture and endless opportunities, New York City has long been a beacon for dreamers and achievers from around the world. After all, it’s the city that never sleeps.
However, if you want to live in the Big Apple, be prepared to have deep pockets, as travel host Sarah Funk recently highlighted in a viral YouTube video.
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“Here’s why it’s actually affordable in New York City,” she began with a sarcastic tone.
“You can pay $5,000 for a studio apartment and guess what? For that, your kitchen, living room, and bedroom are all in the same space. How convenient!”
While the rent varies depending on the neighborhood, it can be quite steep. According to rental marketplace website Zumper, the median rent for all bedroom counts and property types in New York, NY is $4,300. This is +105% higher than the national average.
Having children is another significant expense.
“If you're lucky enough to have kids in your studio apartment, you only need to pay $3,000 a month for day care. What a steal! Literally, I feel like I'm being robbed,” Sarah remarked.
Indeed, childcare can be a significant financial burden for New Yorkers. The New York Times reported in 2023 that some Montessori preschool programs in the city can cost more than $4,000 a month and "working-class families are stretching their budgets to pay at least $2,000 a month for day care."
Even your favorite beverage comes at a premium. Sarah continued, “Pay $8 for a latte because you wanted oat milk instead of regular.”
Transportation costs add to the financial strain. While New York City boasts a massive subway system, Sarah is skeptical of its reliability. “Pay $3 to never make it to work on time because the trains aren't running,” she noted.
“Nervous to ride the train after what you saw in the news? Just pay $100 for a car instead,” she added, pointing to a taxi.
Paycheck to paycheck
Sarah’s conclusion dripped with sarcasm as well: “Why do I need to move out? I could just live paycheck to paycheck for life.”
Her message resonated with many. Her video has amassed more than 1.2 million views, 66,000 likes, and 1,172 comments.
The audience in the comment section pointed out the harsh realities of living in New York City.
“Managing to live paycheck to paycheck with those costs is a flex, I'm not gonna lie,” read one of the top comments.
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Indeed, it requires substantial financial resources to afford such expenses.
A recent study from SmartAsset found that a single adult needs to earn $66.62 per hour to live comfortably in New York City, which equates to an annual salary of $138,570. It defined a comfortable lifestyle using the 50/30/20 budget rule: spending 50% of income on necessities like housing and groceries, 30% on discretionary spending and 20% on paying off debt, saving and investing.
The figures for a single person are already staggering, but they become even more daunting for families. SmartAsset found that to raise two children comfortably in New York City, two adults need to earn a combined $318,406 annually.
To put this into perspective, the median household income in the U.S. was $74,580 in 2022, according to the U.S. Census Bureau.
High earners on the move
The exorbitant cost of living in New York City highlights the significant financial burdens borne by its residents. The state of New York also consistently ranks as one of the most expensive regions to live in, and even affluent individuals are reportedly choosing to relocate.
A 2023 report from SmartAsset examined the inflow and outflow of tax filers making at least $200,000 in each state. It found that in 2021, New York experienced an outflow of 31,485 high earning tax filers. This was the second-largest outflow of high earners in the country, second only to California, which saw 45,578 such filers leave.
Although New York welcomed 11,690 high-earning tax filers in 2021, the substantial outflow resulted in a net decline of 19,795 high earners.
In contrast, Florida and Texas emerged as the top destinations for high earners relocating, experiencing net migrations of 27,567 and 9,008 such filers in 2021, respectively.
According to a Florida Chamber of Commerce 2023 report, new residents infused a total of $39.2 billion of net income into the Sunshine State over just one year. Of this net income migration amount, $9.8 billion came from New York alone, more than any other state.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
