Cost of Living in New York City: What Renters Need to Know in 2024

Welcome to New York City: home to towering skyscrapers, iconic landmarks, and unmatched cultural diversity. Whether you’re moving to NYC for the first time or are well acquainted with this bustling metropolis, you’ve likely weighed the costs of living in such a coveted location. Understanding how living expenses vary from city to city is crucial to planning your budget during a move, as well as understanding how suitable a city is for your lifestyle. By exploring the various aspects of New York City's cost of living, you'll gain valuable insights to help you navigate this city (and your finances) like a pro. 

Cost of Living in New York City 

How much does it cost to live in New York City? When compared to the national average, New York City’s cost of living is 128% higher - making it one of the most expensive places to live in the United States. Compared to the rest of New York State, NYC is considerably pricier, which is to be expected given its status as a global economic and  cultural hub. 

Is New York City Expensive? 

New York City’s affordability depends on your income and what standard of living you’re hoping to maintain. However, the overwhelming answer to that question is a resounding “yes.” If you’re moving from a city with a lower cost of living, you may find it difficult to get as much for your money in a new location. For example, a $50,000 salary will not go as far in New York City as it does in other cities. The US Bureau of Labor Statistics reports that the median US salary hovers around $59,000/year. Residents in New York City would need to earn nearly $135,000 yearly to maintain a comparable lifestyle.  

New York City Housing Prices 

One of the most significant factors in New York City's cost of living is housing. Overall, the price of living in NYC is substantially more expensive (take a deep breath – by 385%) than the national average: 

• The average rent for a one-bedroom apartment in New York City is $3,786/month compared to the national average of $1,517.  

• The median home price in New York City is $764,000, compared to the national sales price of $505,700, reported by the U.S. Census Bureau. 

Meanwhile, the median household income in New York City is around $75,000, meaning that rent can often exceed 30% of most residents’ monthly income. 

Where Is Rent Lowest in New York City? 

On the hunt for the most affordable areas in New York City? If you’re willing to put in the time and learn the tips, you can save some serious money. Not all NYC neighborhoods are equally expensive. Know how to spot an affordable area in the city. 

• Check for high vacancy rates: The more available rentals there are in a given area, the more inclined property managers are to fill units! Think about it – a higher supply of rentals in a city means property owners are competing with other communities to fill spots. Because of this, you might find lower rents as apartments try to offer the most competitive price. 

• Search for rent concessions: As apartments compete to fill spots, you might also come across promotional deals known as rent concessions. These concessions can include reduced rates, a month or two of free rent, or a waived security deposit. Usually, rent concessions are time-sensitive, so make sure to read the fine print as you look for deals.  

• Look outside of the city: As you get closer to the city center, rents tend to skyrocket. The nearer you are to top attractions and activities, the more you’ll typically pay. If being within walking distance to Times Square is not a top priority, consider looking in boroughs like Queens, Brooklyn, or the Bronx.  

Utility Costs in New York City 

Despite its reputation for pricy housing, New York City utilities are relatively manageable (only 3% higher) compared to the national average. Residents should expect to pay the following: 

These costs can fluctuate based on usage, season, and service providers, but they generally don't rise above what most Americans pay. 

How to Save on NYC Utilities 

Although there aren’t too many corners to cut regarding utilities when you rent, especially during the sweltering summer or frigid winter, there are small actions you can take to save a dollar here and there. Switch to energy-efficient lightbulbs and unplug your appliances when they’re not in use. Change your air filters to reduce the strain on your AC. Consider a cold-water detergent and run your washing machine on “cool” to save energy. Small changes can save in the long run. 

New York City Transportation 

Transportation in New York City includes a mix of driving and public transit options. Overall, transportation is 16% more expensive than the national average. 

• The average cost for a gallon of gas in NYC is $3.93, compared to the ever-fluctuating US average of $3.45 per gallon (as of June 12, 2024 - check back tomorrow for another round of Gas Price Roulette).   

• The average transit fare is $2.90 for a one-way trip on the subway, while an express bus can cost up to $7. 

The city is renowned for its extensive public transportation system, including the MTA subway and buses, providing a reliable alternative to driving, with fares that compete with other major cities. 

Groceries in New York City 

When it comes to food and groceries, New York City offers a wide range of options. Groceries in NYC cost around 35% more than the national average. Obviously, you’ll pay according to where you shop, but prices are higher than what you’ll find in other major metros. Average prices of grocery essentials include: 

Healthcare Costs in New York City 

Healthcare prices in New York City vary by provider and insurance coverage, but the overall cost is about 8% higher than the national average. The average NYC health insurance premium costs anywhere between $500-$1,130/month for individual coverage, compared to the national average of $477/month. While you may be inclined to hedge your bets and wash your hands, keep in mind that an out-of-pocket doctor’s visit in NYC costs around $135 (around $125 nationally) per appointment, and that’s just routine care. NYC residents may also consider dental insurance, as the dentist costs around $116 per visit. 

What Is Cost of Living? 

The cost of living is essentially a measurement of how much money you need to maintain a certain lifestyle in a specific location. It considers various expenses such as housing, transportation, groceries, utilities, and healthcare. Cost of living can also help renters compare one city’s affordability to another’s. Understanding cost of living can help renters determine if they can afford a comfortable lifestyle in a new city, as well as what kind of salary they’ll need to do so. 

The Cost of Living Index Explained 

The cost of living index provides a standardized way of comparing the relative prices of goods and services across different cities. Pricing data is collected from each participating location then turned into a composite score to reflect a cost of living specific to each city. This number can vary significantly from one city to another. The national average is set at 100, so a higher index means a higher cost of living compared to the national average. A city with a cost of living index of 120, for example, would be 20% more expensive than the national average. 

How Is Cost of Living Determined? 

Determining the cost of living involves considering the price of six main categories: 

• Housing (rent or mortgage) 

• Transportation expenses (public transit and car maintenance) 

• Food (specifically groceries) 

• Utilities (like electricity, water, and internet) 

• Healthcare costs (including insurance premiums and medical visits)  

• General goods and services (clothing, toiletries, etc.) 

The prices of these goods or services are calculated specifically by location and give an insight into what a renter can expect to spend on a regular basis. 

Ready to Make the Move? 

After understanding the cost of living in New York City, you're better equipped to make an informed decision about your move. Whether you're drawn by the thriving job market or the diverse neighborhoods, NYC has something to offer everyone. 

Don't wait—explore our extensive listings on Apartments.com to find the perfect home that fits your budget and lifestyle. Start your new adventure in New York, New York today! 

*Regional and national statistics sourced from Payscale, U.S. Bureau of Labor and Statistics, and U.S. Census Bureau 

Utility averages sourced from NYC.gov and NY.gov 

Bus fares sourced from the Metropolitan Transit Authority