The exorbitant housing costs, expensive transportation and food prices, and various taxes like state income, sales, and property taxes make living in New York very costly. To learn more about the high cost of living in New York, keep reading.
Sr. Content Editor
Last Updated: 20.02.2023
Prices in the New York, NY area have risen by 1.6% compared to a year ago, with the biggest increases in Transportation, Food, and Housing. The exorbitant cost of living in NYC is mainly attributed to its outrageous housing market. To discover more about the cost of renting in New York, continue reading.
Apartment List reports that the median rent for a two-bedroom apartment in New York City is $6,191.
Monthly rent for studio apartments ranges from $3,295 to $4,331.
The monthly rent for a one-bedroom apartment is $4,331.
These rental prices are significantly higher not only than the median in the U.S., but also in many of the world's major cities.
As of March 2022, the national median rent for studio apartments was $1,101.
On the other hand, one bedroom was $1,139.
Additionally, the the national median rent for two bedrooms was $1,306
That represents a difference of $2,194 for a studio apartment.
That amounts to a difference of $3,192 for a one-bedroom apartment.
That creates a gap of $4,885 for a two-bedroom apartment.
The cost of monthly rent for a furnished 85 m2 (900 sqft) living space in an expensive area of New York City is $6,663.
The monthly rent for a furnished 85 m2 (900 sqft) living space in a normal area of New York City is $4,015.
The cost of monthly rent for a furnished 45 m2 (480 sqft) studio in an expensive area of New York City is $3,777.
The monthly rent for a furnished 45 m2 (480 sqft) studio in a normal area of New York City is $2,357.
The median asking rent for a one-bedroom apartment varies from $3,950 in Manhattan to $1,500 on Staten Island, as of May 2022.
As of May 2022, the median asking rents for a two-bedroom apartment vary from a high of $4,750 to a low of $2,000.
One-bedroom apartments make up the majority of rentals in the city, accounting for 44 percent.
Studios and two-bedroom units each make up about 22 percent.
The smallest portion of the city's rental inventory is made up of three-bedroom apartments, accounting for just 12 percent.
As per the rental site, a staggering 90 percent of apartments in NYC are rented out for more than $3,000 per month.
Now that you are aware of the rental prices in New York, it's worth checking out the cost of buying a house to make a comparison. Keep reading for more information.
The median sales price for a single-family home in the New York metro area is $403,900.
It's not uncommon to spend upwards of $1 million for a one-bedroom apartment in Manhattan.
Between 2019 and the fourth quarter of 2021, the housing market as a whole saw a 41% increase in value.
Furthermore, the median purchase price for a single-family home in NYC is $571,000.
The remaining portion of NYC's housing market is comprised of co-ops and condominiums, which have a median sale price of $537,000.
Housing expenses in New York are 407% higher than the national average.
224.3 is the average housing cost.
The median home cost in New York and New York is $654,300 and $373,000, respectively.
The cost of housing in New York is 407% higher than the national average.
In April 2022, the median listing price for a home in NYC reached $995,000, marking the highest point since 2019.
Prices vary widely by borough
As of May 2022, the median asking price for a home in Manhattan was $1.5 million, while in Brooklyn it was $995,000.
in Staten Island it was $699,400.
In Brooklyn it was $995,000 and in Queens, $625,000.
Tribeca-Soho is the most expensive neighborhood in New York City in terms of cost of living. The average cost of living in this neighborhood is remarkably 390.1% higher than the national average.
In May, the median asking price for homes in the Bronx was $388,000, which is more in line with prices seen at a national level. This makes the Bronx one of the more affordable places to buy a home.
The cost of living in New York City is much higher than in other parts of the state and country. This means that owning and operating a car can be quite expensive. Parking is often limited, and many people who own cars in the city rent parking spaces. To get a better understanding of the average cost of transportation in New York City, see the section below.
For most Americans, the number one expense after housing is transportation.
The average monthly parking cost in Midtown Manhattan (the most expensive area to park in the city) was $562 in 2021.
The average monthly cost of parking in the U.S. is about $167, while in New York, the average monthly cost of parking is often higher than the national average.
The price of gasoline in March 2022 varied depending on the borough, with Staten Island having the cheapest gas at $4.09 per gallon and Manhattan being the most expensive at $5.59 per gallon.
The average price of gasoline in the United States was $4.25 at the end of March 2022.
In New York City, the average price of car insurance is $1,582. This is significantly higher than the national average of $1,483.
The monthly rental cost for a parking spot in the city can vary greatly, from $199 to over $500. It all depends on which part of the city you're renting in.
A monthly transit pass in New York costs $127, while in Los Angeles and Chicago, they cost $100 and $105, respectively.
The cost of taking the bus or subway in New York City starts at $2.75 per ride.
A monthly pass on the MTA costs around $130.
The exception is the one that serves Staten Island Ferry (it’s free).
You can expect to pay about $66.63 to get your tires balanced.
A taxi ride during business hours for 8 kilometers in New York City will cost you $21.
The average single NYC resident spends $4,244 on transportation costs annually.
A family of four with two children spends $11,565.
In specific areas like Utica-Rome, transportation costs are 6% lower than the national average. On the other hand, in Manhattan, transportation costs are 29% higher than the national average.
Regardless of whether you choose to rent or buy, you will still need to pay for utilities. In this section, we will cover the average cost of utilities in New York.
By March of 2022, the average price for basic utilities--for a 915 square foot place--in New York was one hundred seventy dollars and one cent.
The average monthly expenditure for utilities in the United States is $170.09. This figure includes typical expenses such as heating, electricity, water and garbage.
The cost of internet in New York is similar to the average cost across the country.
In March 2022, the average person in the United States would have paid $67.01 for the same goods and services that you could have bought for $65.26.
The average monthly cost for utilities in NYC is around $100-$200, but it can be more or less depending on the size of your apartment and how much you use things like air conditioning and heat.
In New York City, the average monthly utility bill is $273.04, or $3,276.48 per year.
The rate for utilities, which include water, electricity, and gas, is increasing.
The cost of living in New York State can vary greatly depending on which city you live in. In Buffalo, the cost of utilities is 7% lower than the national average, while in Brooklyn it is 18% higher.
Ithaca, home of Cornell University, falls somewhere in the middle when it comes to utility costs among New York State cities, at 6%.
This is higher than the national average.
One of the most important parts for figuring up the cost of living in New York is food and groceries. For one person, it would cost around $50-75 per week to eat all your meals at home or take your lunch. Keep on reading for more facts and statistics.
A three-course meal for two people at a mid-priced restaurant will run you about $100, including tips.
The $5 hotdog, soda and chips combo is a delicious, convenient and cheap meal option that is not the healthiest choice.
If you're looking to save some money and have a good time while cooking, you can expect to spend about $3,891 per year, or $324.25 per month, on groceries.
The cost of feeding a family of four can add up quickly - $11,446 annually, or $953.83 monthly.
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.
In New York City, a bottle of milk costs about $2.90, a dozen eggs go for around $2.55 and a pound of potatoes circles around $3.63.
The cost of a basic lunchtime meal (including a drink) in the business district of New York City is $23.
A Combo meal at a fast food restaurant in New York City costs $11.
The cost of a 500-gram (1 lb) package of boneless chicken breasts in New York City is $9.
A liter of whole milk now costs $1.28 in New York City.
The price of 12 large eggs in New York City is $5.80
The price of Bread for 2 people for 1 day in New York City is $4.08.
The average price for a kilogram of potatoes in New York City is $3.80.
In New York State, healthcare costs can be either 16% lower than the national average in Buffalo, or 12% higher in Ithaca. Plus, the tax rate is pretty high. If you want to learn more, keep reading.
The total sales tax rate in New York City is 8.875%. Nonetheless, the overall tax rate may fluctuate based on the item you buy and its price.
Income tax rates can vary between 4% and 10.90%, depending on your income level.
The income tax levied by the city varies based on your income and falls within the range of 3.078% to 3.876%.
In fact, New York's income tax is the seventh highest in the country.
Individuals in the top tax bracket in New York have to pay a maximum of 8.82% of their income to the state.
The corporate income tax rate in New York falls between 6.50 percent and 7.25 percent. The state levies a sales tax rate of 4.00 percent, while the maximum local sales tax rate is 4.875 percent. The average combined state and local sales tax rate in New York is 8.52 percent.
According to 2022 State Business Tax Climate Index, New York's tax system is ranked 49th overall.
Those in the bottom bracket still pay about half that
New York's state-level sales tax rate is 4%. However, if you consider the average local-level sales tax rate, the total sales tax rate becomes 8.52%.
If you are a homeowner in NYC, you should anticipate paying a property tax rate of approximately 0.80% imposed by the city.
You can anticipate your income taxes in New York City to be similar to those in any other city in the United States, at around 32%.
For a home worth $100,000 in the state's most populous city, that equates to approximately $8,000 per year.
Healthcare coverage for a single person in New York costs an average of $7,890 per year (approximately $660 per month), which is 13% higher than the national average.
Healthcare costs in New York State vary, ranging from 16% lower than the national average in Buffalo to 12% higher in Ithaca.
Albany, the state capital of New York, has healthcare costs that are in the middle range compared to other cities in the state. These costs are 3% higher than the national average.
The average New York City resident pays $2,741 each year for an employer-sponsored health insurance policy. Additionally, the city has multiple health clinics that provide free or low-cost healthcare services.
On the other hand, a family of four pays $7,815.
There are multiple health clinics in New York City that are operated by the city and offer free or low-cost healthcare services.