HousingFood and GroceriesBudget Friendly OptionsDining OutMeal Delivery ServiceTransportationUtilitiesGasWater and SewerInternet and PhoneEntertainmentFree or Low Cost OptionsMovie TheatersNightlifeSportsInsuranceCar InsuranceHealth InsuranceRenters InsuranceHomeowners InsuranceLife InsuranceConclusion
Living in New York City can be an exciting experience, but it can also be expensive. As the most populous city in the United States, New York City is known for its high cost of living. Whether you're a student, a young professional, or a family, you'll need to budget carefully to ensure you can afford all the necessities of daily life.
In this blog, we'll explore what a normal monthly budget looks like for someone living in New York.
Housing
Housing is the biggest expense for most people living in New York City. According to a 2021 report by RentCafe, the average rent for an apartment in New York City is around $3,500 per month which is a whopping 68.6% higher than the national average (Reference). However, the actual cost of housing will vary widely based on the size and location of the apartment. Some neighborhoods, such as Manhattan or Brooklyn, can be particularly pricey. As such, budgeting around $2000 to $3500 a month for rent, depending on the location and size of the apartment, is common in New York City.
Here are some additional facts about housing expense in New York City:
- Housing is typically the largest expense for most New Yorkers, accounting for roughly one-third of their total monthly budget.
- According to a 2021 report by StreetEasy, the median rent for a one-bedroom apartment in New York City is around $2,600 per month, while a two-bedroom apartment rents for around $3,400 per month.
- However, rent prices can vary widely by neighborhood, with some of the most expensive neighborhoods being in Manhattan, such as SoHo and Tribeca. In contrast, neighborhoods in Brooklyn such as Bed-Stuy, Bushwick and Crown Heights, offer more affordable rents.
- Additionally, many New Yorkers also pay a broker fee or a deposit when renting an apartment, which can add up to several thousand dollars.
- For those who choose to buy a home or apartment in New York City, the median home price is around $680,000, according to Zillow. However, the actual cost of a home will vary widely based on location and size, with properties in Manhattan and Brooklyn often being the most expensive.
- Homeowners in New York City also pay property taxes, which can be substantial, depending on the value of the property. The New York City Department of Finance provides an online tool to help estimate property taxes based on property value.
Food and Groceries
The cost of food in New York City can be high, particularly if you eat out frequently. However, there are many ways to save on food expenses. For instance, shopping at a local grocery store or farmers market can be much more affordable than dining out at restaurants. It's also common for New Yorkers to cook their meals at home. Budgeting between $300 to $500 a month on groceries and dining out is a good start for a single person in New York City.
Budget Friendly Options
New York City is home to many farmers' markets, which can be a great source of fresh produce at reasonable prices. Some farmers' markets even accept SNAP (Supplemental Nutrition Assistance Program) benefits, making healthy food more accessible to those with lower incomes.
Dining Out
Dining out can be expensive in New York City, but there are also many affordable options available. Many restaurants offer lunch specials or early-bird specials that can save you money, and street vendors and food trucks are also a popular option for quick and affordable meals.
Meal Delivery Service
Meal delivery services and meal kit services are also popular in New York City and can be a convenient option for those with busy schedules. However, these services can also be expensive, with prices starting at around $10 per meal.
In addition to food and groceries, New Yorkers should also budget for other food-related expenses, such as household items like cleaning supplies and paper products.
It's important to note that food and grocery expenses in New York City can vary widely based on personal preferences and dietary needs. However, by shopping smart and taking advantage of affordable options, it's possible to keep food expenses within a reasonable budget.
Transportation
New York City's public transportation system is extensive and affordable. The Metropolitan Transportation Authority (MTA) provides a network of subway trains and buses that run 24/7. A monthly MetroCard, which provides unlimited rides on the subway and bus system, costs $127. In addition, ride-hailing services such as Uber or Lyft are popular and readily available, but can add up quickly. Budgeting $200 a month for transportation costs in New York City is a good start.
Some more granular details would be:
- Public transportation is the most common way to get around in New York City and is generally affordable. The base fare for a single subway or bus ride is $2.75, and discounts are available for purchasing multiple rides at once. Monthly unlimited ride MetroCards cost $127, while weekly unlimited ride MetroCards cost $33.
- Taxis and ride-sharing services like Uber and Lyft are also popular in New York City. Taxis charge a base fare of $2.50, plus additional fees based on distance and time. Uber and Lyft prices vary based on factors like demand, distance, and time of day.
- New York City is also a very walkable city, and many residents choose to walk or bike instead of using public transportation. However, it's important to budget for maintenance and repairs if you own a bike.
- If you own a car in New York City, be prepared for high costs. In addition to the cost of purchasing or leasing a car, there are also high parking fees, tolls, and insurance rates to consider. Gas prices in New York City are also among the highest in the country.
- For those who need to travel outside of the city, there are several options for regional transportation, including Amtrak trains and regional buses. Prices vary depending on the destination and time of travel.
It's important to consider all of these factors when budgeting for transportation expenses in New York City. By choosing the most affordable transportation options and planning ahead for additional costs like tolls and parking, it's possible to keep transportation expenses within a reasonable budget.
Utilities
In addition to rent, New Yorkers have to budget for utility costs, including electricity, gas, and water. While some apartments include utilities in the rent, most don't. On average, New Yorkers pay around $150 per month for utilities, though this will vary based on the size of the apartment and usage.
According to a 2021 report by NerdWallet, the average monthly electricity bill in New York City is around $115. However, this can vary widely based on factors like the size of your home, the number of people living there, and the type of heating and cooling systems you have.
Gas
The cost of gas in New York City also varies widely based on usage and the type of heating system in your home. According to the same NerdWallet report, the average monthly gas bill in New York City is around $39.
Water and Sewer
Water and sewer bills in New York City are based on metered usage and can vary widely based on usage and the specific water and sewer rates in your area.
Internet and Phone
Internet and phone services in New York City can vary widely based on the specific service providers in your area and the package you choose. Be sure to shop around and compare prices and packages to find the best deal for your needs.
Overall, it's important to budget for utilities expenses in New York City to ensure that you can keep up with these important services. By monitoring your usage and comparing service providers, it's possible to keep utilities expenses within a reasonable budget.
Entertainment
New York City is famous for its entertainment options, from Broadway shows to museums to nightlife. However, these activities can add up quickly. To budget for entertainment, it's important to consider what types of activities you enjoy most and how frequently you plan to participate in them. A budget of around $200 to $500 a month can allow for some occasional outings while still staying within a reasonable budget.
Free or Low Cost Options
In addition to traditional entertainment venues, there are also many free and low-cost activities to enjoy in New York City, such as walking tours, outdoor concerts and events, and public parks.
Movie Theaters
Movie theaters in New York City can be expensive, with ticket prices ranging from around $15-$25 per person. However, some theaters offer discounted tickets on certain days of the week, and there are also several discount movie theaters that offer lower prices.
Nightlife
Nightlife in New York City can also be expensive, with many clubs and bars charging high cover fees and drink prices. However, there are also many bars and clubs that offer free or low-cost admission, especially on weeknights.
Sports
Sports events in New York City can be expensive, with tickets to professional games often costing several hundred dollars. However, there are also many college and amateur sports events that are free or low-cost to attend.
Insurance
While insurance isn't always an obvious expense, it's important to budget for it. For example, health insurance is essential for anyone living in the United States. The cost of health insurance will vary depending on your age, income, and other factors. It's a good idea to budget at least $300 a month for health insurance. Other insurance needs, such as renters insurance, car insurance, or life insurance, should also be budgeted based on individual needs and circumstances.
Car Insurance
Car insurance in New York City can be expensive, with rates that are often higher than the national average. This is due in part to the high number of accidents and thefts in the city. However, there are ways to save on car insurance, such as by shopping around for the best rates and taking advantage of discounts for safe driving, multiple policies, and more.
Health Insurance
Health insurance in New York City can also be expensive, but there are several options available for those who are uninsured or underinsured. For example, residents who meet certain income requirements may be eligible for Medicaid, while others may be able to purchase insurance through the Affordable Care Act (ACA) marketplace.
Renters Insurance
Renters insurance is not required by law in New York City, but it's still a good idea to have it in case of theft, fire, or other damages to your possessions. The cost of renters insurance can vary based on the amount of coverage you need and the specific insurance provider you choose.
Homeowners Insurance
Homeowners insurance is required if you own a home in New York City, and the cost can vary widely based on factors like the value of your home, the location, and the type of coverage you choose.
Life Insurance
Life insurance is not required, but it can be an important investment to protect your family in case of your unexpected death. The cost of life insurance can vary based on factors like your age, health, and the amount of coverage you need.
Conclusion
Overall, a typical budget for a single person living in New York City can range from $3,500 to $5,000 per month, depending on their lifestyle and housing preferences. For a couple, a budget of around $6,500 to $8,000 per month may be necessary. These are just rough estimates and will vary widely based on personal preferences and individual circumstances. However, by carefully budgeting and prioritizing expenses, it is possible to live comfortably in the city that never sleeps.
