As the epicenter of the country’s business, fashion, art, media and financial markets, New York City is a haven for professionals and creatives seeking virtually unlimited opportunities, surrounded by some of the best dining, shopping, nightlife and real estate in the world.
New York has always attracted those who aspire to prove themselves in “if I can make it there, I can make it anywhere” style. But the city’s near-endless opportunities for work and play do not come cheap.
[Read: The Best Places to Live in New York]
The True Cost of Living in New York City
New York City ranks No. 98 in the U.S. News 2023-2024 Best Places to Live list, with high scores in desirability and its thriving job market. However, high cost of living and housing affordabilty keep it from ranking higher.
According to data from the U.S. Census Bureau, the median annual salary for the New York City metro area is $74,108, which is significantly higher than the national average of $58,260.
But that’s because New Yorkers have to pay more to live well.
— A single meal at an inexpensive restaurant costs about $25, according to Numbeo, a crowd-sourced cost of living database.
— A three-course meal for two at a midrange restaurant costs about $100 on average, according to Numbeo.
— Energy bills will run you about $188, according to RentCafe.
— No car? No problem. For $127 a month, you can get an unlimited 30-day MetroCard for subways and buses.
— Own a car? You’ll need to pay for parking. On average, New Yorkers pay $570 per month in parking fees, although that amount will change depending on location, according to parking company SpotHero.
— Want to see a show? The average cost of a Broadway ticket in 2022 was $116, according to Statista
— $700,000 is the median home sale price in New York City, according to PropertyShark data. That figure jumps to $1 million for Manhattan alone.
— The median rent across all property types in New York City is $3,595, according to Zillow data.
— If you want to rent a Manhattan apartment, you can expect to pay about $4,175, according to a report from Douglas Elliman.
— Expect to spend a minimum of $538 per month per person for groceries, per data from crowdsourced information site Numbeo.
— The combined city and state sales tax is 8.875%. The city charges a 10.375% tax and an additional 8% surtax on parking, garaging, or storing motor vehicles in Manhattan.
— In addition to standard federal and state income tax, New York City residents also pay a city income tax ranging from 3.078% to 3.876%, depending on income bracket.
Out of the 125 metro areas on the Best Places to Live list, New York City is the 11th most expensive place to live in the U.S.
[Read: The Guide to Buying a Home.]
Home Prices in New York City
Home prices throughout New York City are expensive. Here’s how much it costs to buy a condo, coop or home in New York City, according to Property Shark’s data of 6,900 home sales transaction during the beginning of 2023.
| Type | Median sale price |
| Condo | $989,000 |
| Coop | $455,000 |
| House | $750,000 |
As with most major cities, home costs vary sharply across New York City neighborhoods. Those with their eye on Tribeca, Nolita, SoHo in Manhattan or the Boerum Hill-Cobble Hill-Carroll Gardens section of what is colloquially known as Brownstone Brooklyn will pay some of the highest prices in the city — and country.
Here’s a look of median home sale price in some of New York City’s most expensive neighborhoods, according to Property Shark:
| Neighborhood | Borough | Median Sale Price |
| Hudson Yards | Manhattan | $5,154,250 |
| Central Park South | Manhattan | $3,851,304 |
| Tribeca | Manhattan | $3,500,000 |
| Red Hook | Brooklyn | $2,865,000 |
| Carroll Gardens | Brooklyn | $1,633,371 |
| Williamsburg | Brooklyn | $1,400,000 |
| Hunters Point | Queens | $1,128,888 |
| NoHo | Manhattan | $3,037,500 |
| DUMBO | Brooklyn | $1,798,696 |
| NoLita | Manhattan | $1,525,000 |
Other areas are more affordable. For example, the median home sales price in Jamaica, Queens, is $480,000 and Sunset Park in Brooklyn is $475,000.
If you’re looking to move to New York City, it’s worth finding a New York City real estate agent so they can help you plan for your budget and whereabouts you want to live.
Affording a Home in New York City
Saving for a down payment is often the most significant barrier to entry for homebuyers. Potential New York City buyers should be aware that, due to extremely high demand, down payments of less than 20% are practically unheard of in the city. If available, those properties are likely to be in outer-borough neighborhoods that are seeing community rebuilding efforts without displacement (basically improving neighborhoods without gentrification, which pushes prices up).
[Read: How to Save Enough for a Down Payment.]
Many upscale co-ops often demand even more than 20% down or forbid financing altogether. With multifamily buildings being the prevalent housing choice in the city, don’t forget to factor monthly maintenance or common charges into your housing budget as well.
How to Afford New York City
New York City may be expensive, but due to its sheer size, there are bargains to be found across the five boroughs. Sure, New York is home to 76 Michelin-starred restaurants, but there are also excellent inexpensive cafes, diners and food trucks on every corner.
[See: The 10 Best House Hunting Apps in 2021.]
There are abundant free entertainment options across the city, as well. Free summer movies and concerts fill local parks every summer. Museums offer free days, and many are pay-what-you-wish all year-round. A stroll through Central Park or along the High Line costs nothing at all. Enjoy a no-cost harbor cruise courtesy of the Staten Island Ferry, or snag free seats at “Saturday Night Live,” “The Daily Show” or one of the many other shows that film in the city.
To save on housing costs, renters would do well to find a roommate for sharing expenses. Those looking to buy a home in New York City should save as large a down payment as possible and work on their credit score to secure the best mortgage rate. Choosing a comparable alternative to your pricier dream neighborhood is another great way to save if you want to afford New York City living.
More from U.S. News
The 25 Best Affordable Places to Live in the U.S. in 2023-2024
The Best Places to Live By the Beach in the U.S. in 2023-2024
The 25 Best Places to Live on the East Coast in 2023-2024
What is the Cost of Living in New York City? originally appeared on usnews.com
Update 06/09/23: This story was published at an earlier date and has been updated with new information.
