How Much Salary Do You Need to Live Comfortably in NYC?

Moving to the city that never sleeps is a long-time dream for many people across the USA. From living out their Broadway dream to simply living that city life and going for a morning run in the park, Manhattan life is something you don’t want to miss out on.

As great as it is, NYC is one of the most expensive places to live in the U.S., hands down. The cost of living can be intimidating for anyone considering a move to the Big Apple with their family. Here are the main costs you need to consider to figure your salary needs.

1. Your Home: The Biggest Expense

In New York City, housing is the biggest crazy monthly expense for most locals. The cost of renting or purchasing an apartment in the city varies depending on the neighborhood, size, and location.

Housing costs here are exorbitant and cause many residents to live outside the city to commute. Here is a breakdown of what you can expect to pay for rent in the city:

• Studio apartments: $2,800 to $4,500 per month
• 1-bedroom apartments: $43,000 to $5,000 per month
• 2-bedroom apartments: $4,500 to $8,000 per month

Some neighborhoods in Manhattan, especially areas of the Upper East Side, Tribeca, and SoHo, have some of the highest rents in the USA, with prices above $5,000 per month for a small one-bedroom studio.

People who have the need to live here tend to have roommates or have the salary to afford life in the city. Areas in Brooklyn like Williamsburg are also expensive, though a tad more affordable than prime Manhattan real estate on the park.

Parts of Queens, Brooklyn’s outer neighborhoods, and parts of the Bronx have more affordable options. The subway and bus system work quite well, and this is an excellent option if you can’t afford the sky-high prices.

Rent vs. Buying

If you’re considering buying a home in NYC, know that it is a great investment, as rents are always rising. For many the capital needed upfront is too high to ever enter this market.

The average price per square foot for an apartment in Manhattan exceeds $1,500, and with a view to the park, prices can be even double this amount.. A 1,500-square-foot apartment in central Manhattan can easily cost between $2 million and $3.5 million.

A monthly mortgage, along with property taxes, insurance, and maintenance, could easily push your housing costs to $5,000–$10,000 per month out of your salary which for most isn’t feasible.

2. Utilities

Utilities are another key monthly cost to keep in mind when budgeting. In NYC, utilities are not included in the rent unless otherwise stated, so you’ll need to budget separately.

• Electricity, heating, water, and garbage: $150 to $200 per month
• Internet: $50 to $100 per month
• Doorman: $60 to $100 per month (depending on the building)

If you live in an apartment with central heating and hot water included in the rent, your costs could be slightly lower. During the winter, heating costs can rise, especially in older buildings.

3. Food & Snacks: Personal Fuel

Food, no matter where you live in the world is another significant part of the budget you have to consider. Whether you cook at home or eat out, food costs in NYC are very high and add up quickly. That salmon bagel with cream cheese is a delicacy you will need to save up for. Here’s what to expect:

• Groceries: $300 to $500 per month for a single person (if you are vegan except higher rates)
• Eating out: A meal at a casual spot like tacos or pizza might cost between $12 and $30 per person, while grabbing a bite at a simple, middle-of-the-road restaurant could cost $50+ per person for a simple meal and drink for one.
• Coffee Shops: A simple medium coffee and pastry at a cafe will run you $9 to $18 easily depending on the location and quality.

NYC is known for it’s amazing restaurants. It is a food lover’s paradise, from food trucks to high-end Michelin restaurants with a wait list for months. Be careful; eating out frequently will quickly add up and eat away at your salary. Apps that bring the food to you, like UberEats or DoorDash, add up quickly too.

For those who are on a budget, cooking at home is a great way to reduce expenses. However, groceries in NYC can be more expensive than in other cities, especially when purchasing organic or specialty items from high-end stores like Whole Foods or Trader Joe’s.

4. Getting Around: Navigating the City

New York City has one of the most advanced and affordable public transport systems in the U.S. At least one thing here is affordable! While it’s possible to live in NYC without owning a car, you will still need to factor in transport costs for other things:

• Monthly MetroCard: $127
• Taxis and Uber/ Lyft: $10 to $30 for short rides or more for longer distances
• Car: Parking, insurance, and gas can add $500 to $1,800 per month (not recommended unless you need a car as the city costs for parking are going up by the day)

The subway is the most common mode of transport for NYC locals no matter their class or status in life. Thankfully, it’s affordable compared to car ownership and you really don’t need a car with the taxis here.

For those who live far from subway lines or need more flexible transportation for their kids, using Uber or Lyft might be a more convenient but expensive option. You can choose shared rides to save a few dollars by carpooling with others headed in your direction.

5. Health & Medical Costs

New York City’s healthcare system is known for its high quality and high prices for care. If you have employer-sponsored health insurance, you will likely pay between $100 to $500 per month for premiums, depending on the plan and coverage options.

If you lose your job you need to have a backup plan. Out-of-pocket medical expenses in NYC can be extremely high. A visit to a general doctor can cost $100 to $300, and emergency room visits or special treatments can run into the thousands of dollars.

Many people who do not receive insurance through their employers opt for health insurance through the Affordable Care Act or Medicare, which can help lower costs but may still have high premiums or age limits.

6. Enjoying NYC With The Funds Left Over

New York City has so many entertainment options you could get lost in the city of fun for years without working. Enjoying all these activities can be pricey. Here’s a breakdown of some entertainment costs:

• Gym memberships: $80 to $200 per month or more for specialized classes like puppy yoga
• Theater, concerts, and events: Tickets range from $20 for smaller performances to $290+ for Broadway shows and can reach $1000 for front-row seats
• Nightlife: A night out at bars or clubs can range from $50 for one simple cocktail to $200, depending on the venue and how much you drink. You can find yourself spending $500 for an entrance to a Soho House party or simply having a cheap beer on the streets of Manhatten.

If you are looking for a life hack, you can find discounted tickets for Broadway shows that didn’t sell out if you are willing to wait.