F
69%
Overall NAT. AVG.
27%
Goods & Services NAT. AVG.
188%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index New York New York National
Cost of living169117100
Goods & Services127108100
Groceries113102100
Health care121103100
Housing288145100
Transportation115105100
Utilities102100100

An Overview of Cost of Living in New York, NY

Knowing the cost of living in New York allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in New York stands at 169, marking it 69% higher than the national average.

If you prioritize affordability when seeking a new place to live, New York may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, New York falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs are a major factor in the New York cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 187.8% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Goods and services make up 33% of the total cost of living index score and are a large part of your everyday expenses. These items could include things like haircuts, salons, toothpaste, shampoo, clothes, movies, bowling, gym memberships or yoga. In New York, you can expect to pay 26.8% more than average for these items, making it a more expensive place to live.

The substantial and relentless rise in grocery prices definitely warrants some attention. Over the past two years, grocery expenses have escalated by more than 10%. Having said that, the situation in New York is even less favorable, with grocery prices here being 13.4% higher than the national average.

What Do Locals Say About the Cost of Living in New York?

Nobody knows their city better than the people who actually live there. So, we asked 56 local residents how they would rate the cost of living in New York and this is how they responded. 13% of people said that the cost of living was affordable, with prices decreasing, while 88% of people said that the cost of living was very expensive and prices continue to rise.

Is New York Affordable?

Is New York affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in New York, the median home price is 243.9% higher than the national average and monthly rent prices are 56.9% higher than the typical rates. Additionally, the median income levels play a role in affordability, with New York boasting a median household income of $67,046, 21.2% higher than the national average.

What Factors can Influence the Cost of Living in New York?

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In New York, the housing index stands at 187.8% higher than the national average.

Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In New York, the utilities index registers 1.7% higher than the national average.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In New York, the transportation index is 15.2% higher than the national average.

Where is the Data From?

The New York cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in New York is 45% higher than the New York average
  • The cost of living in New York is 69% higher than the national average
  • New York housing is 188% higher than the national average
  • New York general sales tax is 22% lower than the national average
  • New York state income tax is 77% higher than the national average

Most Affordable Places to Live in and Around New York

See all the best places to live around New York

Compare New York, NY Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$104,217$8,685$2,432$3,127
      Renters$52,724$4,394$1,230$1,582
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in New York, NY, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In New York, homeowners have a median income of $104,217. Using that number, a maximum of $2,432 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $52,724, which means there is a maximum of $1,230 to be spent on the costs of renting a home or apartment.

      New York Sales Tax

      State General Sales Tax With Max Surtax
      New York 4% 8.875%

      New York Income Tax

      State Income Tax (Low) Income Tax (High)
      New York 4% 10.9%

      Goods & Services

      Item New York National avg. Difference
      Haircut $34.94$24.2644.0%
      Beauty Salon $64.07$45.5640.6%
      Toothpaste $3.96$3.707.0%
      Shampoo $1.69$1.2832.3%
      Movie $13.68$12.1312.8%
      Bowling $29.40$18.0063.3%

      Groceries

      Item New York National avg. Difference
      Ground Beef $5.87$5.840.6%
      Fried Chicken $1.46$1.576.9%
      Milk $4.97$4.676.3%
      Potatoes $5.21$4.935.7%
      Pizza $12.57$12.094.0%
      Beer $11.87$10.4114.0%

      Health Care

      Item New York National avg. Difference
      Optometrist $128.97$125.682.6%
      Doctor $162.24$135.7819.5%
      Dentist $149.64$113.2932.1%
      Ibuprofen $11.15$10.654.6%
      Lipitor $402.75$468.6014.1%

      Housing

      Item New York National avg. Difference
      Home Price $635,200.00$184,700.00243.9%
      Avg. Mortgage Payment $6,916.73$2,346.69194.7%
      Apartment Rent $1,489.00$949.0056.9%

      Transportation

      Item New York National avg. Difference
      Gasoline $3.55$3.462.5%
      Tire Balancing $86.43$59.9244.2%

      Utilities

      Item New York National avg. Difference
      All Electricity $201.27$193.993.8%
      Phone $200.67$192.254.4%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      East Orange, NJ64,65011111.1%
      Roselle, NJ21,69911212.0%
      Silver Lake CDP (Warren County), NJ32011313.2%
      Newark, NJ281,91711414.0%
      Paterson, NJ145,48411515.3%
      New York, NY8,379,55216969.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Los Angeles, CA3,973,27817271.6%
      Toronto, ON3,013,752n/a 
      Chicago, IL2,699,34711414.1%
      New York, NY8,379,55216969.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.