How Much Money Do You Need To Make To Live In Nyc
What it's really like living in New York City on a $100,000 salary
Updated
2020-02-27T20:49:00Z
- New York City has some of the country's highest-paying jobs.
- Nearly 30% of New Yorkers make six-figure salaries.
- But a high income doesn't render you impervious to the city's high taxes and infamously high cost of living.
- From tiny, 260-square-foot apartments to above-average-priced milk, here's what living in New York on a $100,000 salary can really look like.
New York is a relatively high-income state.
Source: Data USA
And New York City has higher incomes than other parts of the country.
Source: Data USA
Many people flock to the Big Apple for the assortment of high-paying jobs the market has to offer.
Source: CNBC
About 30% of New York households end up making six-figure salaries.
Source: Statistical Atlas
Jobs in New York that pay a $100,000 salary include business analyst, stockbroker, and development manager.
Source: Indeed
That's compared to the average salary in New York City — $75,000.
Source: PayScale
With $100,000 rolling into your bank account annually, you may think you're ahead of the game, which is relatively true.
But in reality, your take-home pay will be closer to $65,000 after income taxes.
Source: Go Banking Rates
Then you have to account for New York's infamously high cost of living.
The cost of living there is 129% higher than the national average, according to PayScale.
Source: PayScale
A gallon of milk in New York, for example, costs $4.53 on average versus the national average cost of about $3.50.
Source: Investopedia and Studying in the US
When it comes to discretionary spending, it costs an average of $100 a month to have a gym membership in New York ...
Source: Business Insider
... a basic dinner for two people at a neighborhood pub costs an average of $57 ...
Source: Business Insider
... and a men's standard haircut costs $26 on average.
Source: Business Insider
To get around the city, a monthly public-transit ticket is $121, which is the fifth most expensive monthly transit ticket compared with 50 cities globally.
Source: Business Insider
The city's sales tax rate sits at 4.5%, and combined with the 4% state sales tax, consumers pay a total 8.5% sales tax to shop in New York City.
Source: New York City Department of Finance
For reference, the average local sales tax rate across states in the US ranges from .03% to 5.14%, with some states not enforcing one at all.
Source: Tax Foundation
Then there's the issue of housing, which is by far the biggest contributor to New York's high cost of living. Housing is a whopping 369% higher than the national average in New York.
Source: PayScale
The city's property taxes are relatively low at 0.9%, compared with the statewide average of 1.68% respectively.
Source: Smart Asset and Smart Asset
If you abide by the advice to put no more than 30% of your annual income toward housing costs, that leaves you with $2,500 a month for rent.
Source: Naked Apartments
While that may seem like a lot, this is New York City we're talking about ...
... where the average rent is $3,475 for an apartment in Manhattan, according to Investopedia.
Source: Investopedia
In Manhattan, the average rent for a studio apartment is $2,550.
Source: Naked Apartments
If you opt for a one-bedroom apartment in Manhattan, that'll cost you closer to $3,100 a month in rent.
Source: Naked Apartments
On top of that, New York renters often have to cough up what's called a broker's fee, which usually amounts to about one month's rent of an apartment up front at lease signing.
To afford something roomier than a studio apartment, there's a good chance you'll need to find a roommate, like many New Yorkers do.
In fact, a 2017 study that analyzed US Census data found that 40% of adult renters in New York City were living with a roommate.
Source: New York Curbed
You could also live in one of the surrounding boroughs of Brooklyn, Queens, and the Bronx, which are still pricey but more affordable than Manhattan.
Source: Naked Apartments
The average studio rent in the Bronx is $1,450, while the average rent for a studio in Queens and Brooklyn is $2,175 and $2,350, respectively.
Source: Naked Apartments
If you're determined to have your own space in Manhattan, you could adopt the tiny-living lifestyle.
Tiny apartments aren't uncommon in New York City, but the 55 micro-apartments at Carmel Place in lower Manhattan take that concept to a new level.
Source: Business Insider
The apartments were developed in 2015 as a tiny-living experiment to help aid the city's growing population and resulting lack of affordable housing.
Source: Business Insider
The units range from 260 to 360 square feet. For comparison, the average size of an apartment in Manhattan is 703 square feet.
Source: Business Insider and RENTCafe
Monthly rent there starts at $2,775, so it's a bit over budget.
Source: Business Insider
But gym access, housekeeping, laundry facilities, grocery delivery, and access to social events are included in that price, as well as up-to-date appliances and furniture, which trims your cost-of-living elsewhere.
Source: Business Insider
Business Insider's Leanna Garfield spent a night in one in 2015 to see what living in the units is really like.
Source: Business Insider
She found the room to be beautifully decorated and designed, and said "it'd be easy to live here" if she could afford the monthly rent.
Source: Business Insider
Overall, the micro-apartments at Carmel Place are newer than what you would normally find in the hunt for an apartment rental, micro or otherwise, in New York City.
Source: RentHop
... but at least the apartment had full-length windows with sunlight streaming through, which can be a desirable feature in the New York City rental scene.
Source: The New York Times
The average age of a residential building is 90 years old in New York City, so even with a $100,000 salary, there's a good chance you'll be renting an older apartment.
Source: Rent Hop
This article has been updated since publication.
Katie Canales
Tech Reporter
Katie is an Austin-based tech reporter at Business Insider. She graduated from Texas A&M University in 2017 with a bachelor's degree in journalism. You can reach her at kcanales@businessinsider.com or follow her on Twitter @KatieCanales1.
Hillary Hoffower
Correspondent, Millennial Wealth
Hillary reports on the intersection of youth culture and wealth, looking at the business, lifestyle, and financial behaviors of millennials. She covers trends in how high-net-worth millennials are living and spending, profiles millennial entrepreneurs, and examines how the economic environment millennials grew up in shaped them and their money habits. She also dives into the luxury landscape. She's investigated the French Riviera's pandemic party problem, explored Israel's luxury real estate market, and looked at how the ultrarich are reeling in flashiness in the name of safety. Here's a sampling of her work: — The world's youngest self-made billionaire hopes to power every future self-driving car with a technology that Elon Musk says is 'doomed' — Tiffany and the Trumps: Insiders describe how the president's younger daughter has charted what they say is a distant relationship with her father and come to terms with having America's most divisive last name — Yachting insiders detail the rampant sexual harassment aboard million-dollar ships, where crew members are promised a glamorous lifestyle and can instead find themselves trapped at sea with no one to turn to — Millennials came limping out of the Great Recession with massive student debt and crippled finances. Here's what the generation is up against if the coronavirus triggers another recession. — Class of 2020: A look at Gen Z as it graduates into chaos — How the American millennial is overcoming debt, the dollar, and the economy they were handed — College is more expensive than it's ever been, and the 5 reasons why suggest it's only going to get worse Hillary joined Business Insider in 2018 reporting on personal finance. Let her know what millennials are doing with their money by reaching her at hhoffower@businessinsider.com. Follow her on Twitter @hillary_tweets.
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How Much Money Do You Need To Make To Live In Nyc
Source: https://www.businessinsider.com/what-its-like-living-in-new-york-100000-salary-reality-2019-2
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