New York is one of the most expensive cities to live in in the world. As a global center for music and arts, international students, corporate headquarters, and many more, the state attracts people from all over the world.
Despite the attractions, living in the Big Apple is anything but cheap. Property rents are some of the highest in the world, and the tax burden cuts deep into incomes.
So, what makes New York so costly for its residents and visitors?
New York state is expensive because of the high housing costs and tax rates. Rents and property prices are high because of the high demand that keeps growing.
Read on as we delve into other factors that make the State of New York so expensive.
Is NY State Expensive to Live in?
No doubt, New York state is costly to live in. It is ranked second out of all 54 states, only second to Hawaii.
With new homeownership rates in the state at an all-time national low, housing rates are the most challenging aspect of living in New York.
Cost of Living in New York Per Month 2023
Cost of Living in New York for a Single Person
A single person estimated monthly costs are 11,383.10$, with the average rent for a one-bedroom apartment costing about $ 3,409.40 per month. Most single people in New York choose to live with a roommate to ease the rent burden.
Cost of Living in New York for a Small Average Family
For a small average family of two parents and two children, estimated monthly costs are $ 5,096.07 without rent. A 3-bed rental would cost about $6,759.26 on average per month.
The cost varies depending on the borough you live in, with schools and childcare facilities more affordable the farther away they are from the city center.
Cost of Living in New York for International Students
New York state is expensive for international students compared to other states or study destinations worldwide. If students choose to live off-campus, getting a trusted roommate to split the costs is advisable.
A 1 bedroom apartment outside the city center would cost about US$2,002.88 per month. Food would cost US$3,477 per month.
Utilities and transport are affordable in New York and come to around $200 and $127, respectively. International students can opt to cycle to save on transport expenses.
Why is New York State So Expensive?
The high cost of living in New York has been a hot topic of discussion across many forums. There have been several attempts by the government to lower the living expense in the state through various measures such as rent controls.
Here are some of the factors that make New York State so expensive;
1. Housing Costs
Median housing costs in New York are 51% higher than the national average. The average home price in Manhattan is $2,105,921, while the average apartment rent is $5,063. The rates are high compared to the national median rent of $1,827 a month.
2. High Taxes
New York has some of the highest taxes in the country. Property tax, income tax, and sales tax in New York are one of the most expensive tax burdens in all the states. New York Residents pay 4.4% in property taxes, 4.96% in income tax, and 3.43% in sales tax.
3. High Demand for Basic Goods
There is a large population in New York. Additionally, it is a significant tourist attraction with a diverse entertainment industry. Businesses globally visit New York for meetings, forums, and workshops.
Big corporations set up headquarters in the State. In any given time period, the demand for goods in New York is always high. High demand drives prices high.
4. Large Population
New York is densely populated with limited land resources to cater to the growth.
A research finding showed that most available apartments to rent are in the wealthier neighborhoods where rents are out of reach for most working Americans.
Most Expensive City to Live in New York
Most urban centers in New York State come with a high cost of living. New York City is one of the top-ranked and most expensive cities in the 54 states and the world. Manhattan is 154% more expensive to live in compared to the national average.
How Much Money Do You Need to Live Comfortably in New York?
New York rates are very high, and to live here, you have to earn just as much. You would need to make at least $82,637 a year to afford a one-bedroom apartment in New York.
Rents vary depending on the borough you live in, so shopping around is advised. The further away you are from the city, the more affordable the rates get.
Is New York Expensive for Tourists?
New York attracts a lot of tourists per year. There is a continuous demand for hotel rooms, entertainment, and other services required by visitors.
As such, prices stay high in response to the constantly high demand. Here’s how much you would need on average on a trip to New York; $2,057 for a solo traveler, $3,694 for a couple, and $6,926 for a family of 4.
Is New York or California More Expensive?
California is among the top five most expensive states to live in. Comparing the two at a state level, California’s cost of living is higher than New York’s by about 5.3%.
California residents pay 2.8% more for groceries than their New York counterparts. Public transport is also more affordable in New York.
On average, housing costs are higher in California than in New York. New York City is, however, more costly compared to LA.
You would pay $2,098 monthly for a one-bedroom apartment in New York City. A similar apartment would cost you $1,364 a month in LA.
For families with children, New York offers better rates for childcare. Raising a child in California is 11% more expensive than in New York.