- 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.
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And New York City has higher incomes than other parts of the country.
Source: Data USA
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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
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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
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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
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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
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... a basic dinner for two people at a neighborhood pub costs an average of $57 ...
Source: Business Insider
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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.
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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
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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 want to buy a home in the New York City metro area, a yearly salary of $101,997.84 could afford you the cost of the principal, interest, taxes, and insurance on a median-priced home, according to mortgage rate site HSH.
Source: HSH
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Of course, this is assuming you already have a 20% down payment of about $85,600 already saved. And your options for buying a home in the city for $428,000, the median home price in the greater metro area, will be a little slimmer.
The median home value in the five boroughs of New York City is closer to $650,000, according to Zillow.
Source: Zillow
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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
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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
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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
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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.
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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
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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.
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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
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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
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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
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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
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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
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But space is just something you have to sacrifice sometimes if you're going to live in New York. The YouTuber Chris Buell said he paid $2,600 a month for this 350-square-foot apartment in an undisclosed New York City neighborhood.
Source: Chris Buell/YouTube
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... 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
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Many New Yorkers live in buildings that weren't built anytime recently, including the YouTuber Jeremy Bernier, who lived in a 100-year-old building.
Source: Jeremy Bernier/YouTube and RentHop
He was working as a software engineer making $150,000 a year in 2016, when he was living in this one-bedroom apartment in the East Village for $2,500 a month.
Source: Jeremy Bernier/YouTube and Jeremy Bernier/YouTube
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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 a tech and crypto reporter based in Austin, Texas. She joined Insider in 2018 and focuses heavily on NFTs, blockchain technology, major crypto players, and the booming Web3 space. She has also covered the many happenings in the tech industry, from content moderation and data privacy to antitrust issues and regulation. Katie graduated from Texas A&M University in 2017 with a bachelor's degree in journalism. She began her time at Insider in the company's San Francisco office before moving home to Texas in 2021. You can find her paddleboarding most Saturdays. Reach her at kcanales@insider.com, or follow her on Twitter @KatieCanales1.
Hillary Hoffower
Economics Correspondent, Millennial Wealth
Hillary focuses on the intersection of youth culture and wealth, reporting on the lifestyles and economics of millennials and Gen Z. She covers trends in how these generations are living and spending and examines how the economy is shaping them and their financial behaviors. She also reports on consumer spending and New York City's economy, and previously wrote about the ultrarich and personal finance at Insider before joining its economy team. Basically, she's written about money from every angle you can imagine. Inside the epicenter of America's Great Resignation: Kentuckians lay out the 4 forces driving the state's labor shortage — and explain why it's here to stay Millennial New Yorkers are ditching basem*nts and roommates for luxury apartments at $1,000-plus discounts 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 Inside the French Riviera's pandemic party problem 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.
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As a financial expert with a keen understanding of the challenges faced by individuals managing their finances in high-cost cities like New York, let me delve into the key concepts discussed in the article "Executive Lifestyle" by Katie Canales and Hillary Hoffower. The article sheds light on the financial realities of living in New York City on a $100,000 salary, emphasizing the impact of high taxes and the city's notorious cost of living.
Income Disparities: The article highlights that New York is a relatively high-income state, with the city boasting higher incomes than many other parts of the country. Approximately 30% of New York households earn six-figure salaries, with specific jobs such as business analysts, stockbrokers, and development managers commanding $100,000 salaries.
Take-Home Pay and Taxes: Despite a $100,000 salary, the article reveals that the take-home pay after income taxes is closer to $65,000 annually. It underscores the importance of considering net income when evaluating one's financial situation.
Cost of Living: New York's infamously high cost of living is a major focal point. The cost of living in the city is 129% higher than the national average, impacting various aspects of daily life, from housing to basic expenses.
Housing Challenges: Housing emerges as a significant contributor to the high cost of living. The article notes that housing costs in New York are a staggering 369% higher than the national average. Renting in Manhattan, where the average rent is $3,475, poses substantial financial challenges.
Property Taxes and Homeownership: While New York City's property taxes are relatively low at 0.9%, the article provides insights into the challenges of homeownership. A yearly salary of over $100,000 is suggested to afford the costs associated with buying a median-priced home in the metro area.
Alternative Living Arrangements: The article explores alternative living arrangements, such as living with roommates or considering surrounding boroughs like Brooklyn, Queens, and the Bronx, where rents are comparatively more affordable.
Micro-Apartments and Sacrifices: Tiny living options, exemplified by micro-apartments, are discussed. These compact living spaces, while offering some amenities, come at a premium, highlighting the trade-offs residents may need to make for the New York City experience.
Age of Residential Buildings: The age of residential buildings in New York City is emphasized, with an average age of 90 years. Even with a $100,000 salary, individuals may find themselves renting older apartments with limited space.
In summary, the article provides a comprehensive overview of the financial challenges and lifestyle considerations associated with living in New York City on a $100,000 salary. It underscores the importance of careful financial planning and the need to make strategic choices to navigate the city's high costs effectively.
