NYC Middle-Class Income: Can You Afford the Family of Four in NYC?
A complete guide to the cost of living in New York for middle-class families.
New York is a city of hope with lively communities, amazing museums and a unique culture. It is the dreamland where you can go after your dreams.
Can you afford this dream? The realization of the dream to live in one of the world’s most expensive cities is not as easy. It takes a lot of finances.
How much money do you need to live a comfortable life in NYC? We will see the numbers and see what it would cost to be treated as “middle class” in this expensive city.
Who is the middle class in NYC?
In NYC, in 2023, a family of four needs at least $81,396 annual income to be regarded as “middle class”. For you, such a huge amount might seem like a lot and truly it is. However, defining the “middle class” is more complex than simply selecting some figures.
The Pew Research Center gives the median income range, which means 50% of all US families make less than that number and 50% of all are making more. In this article, they also highlight three different definitions of “middle class.”
In 2023, experts estimate the US national household median income to be around $77,000. Truly speaking, just to be above the poverty line in NYC, you would need to earn a lot more than the national average because of the much higher cost of living in this city.
Is $81,396 sufficient to make a comfortable life for a family in New York City? That depends on what your meaning of “comfortable” is. For example, RentCafe (rental listing site) found that the average 2-bedroom apartment rent in Manhattan is $4,200 per month, which is mind-blowing. That’s more than half of the yearly income of a middle-class New York City family of four.
According to the U.S. Department of Agriculture, a healthy diet for a family of 4 members in the Northeast (including New York City) in 2023 would be $1,243 per month. Bus and metro pass besides modifying costs that will make an enormous portion of your income vanish.
Challenges in New York City:
For middle-income families, city life may be their dream, but the finances could be quite a challenge.
According to the U.S. Bureau of Labor Statistics, inflation in the metropolitan area of New York is above than national average.
In 2023 released data, grocery prices in New York City are 6.3% while the national average is a 5.2% increase.
In January, the Center for New York City Affairs analyzed the labor market of the city. The average wage growth in the city was about 2.5% in the past few years, whereas the inflation rate was closer to 4%. This means that you might get a raise, but your purchasing power decreases.
The housing alone is 2 to 3 times the national average as in the report of Apartment List 2023. Nowadays, a nice 2 bedroom apartment in Manhattan can cost as much as $4,200 monthly.
NYC Compared to Major US Cities:
Los Angeles is the land of sunshine and the place where celebrities live. Looking into the facts, expatistan data will manifest that the cost of living in LA is about 23% below that of New York.
In NYC, the cost of a furnished 2-bedroom apartment could be as high as $42,00 per month, while the same unit in LA would ring up to $3,100. Check this image to see the view clearly:
Everywhere you look, NYC ranks as more expensive than LA. From grocery shopping to transportation, these little daily expenses make a big difference. There are certain factors to consider.
Specifically, when using public transportation as your primary mode of travel, living in a city that is so car-centric might require you to suffer higher gas and car insurance costs.
Chicago is a windy city. Here, the living cost rises again. Rent, groceries, and utilities are much cheaper here than in NYC on average.
In Chicago, you can find a good 2-bedroom apartment for $2500 per month and estimate groceries to be around $800 a month.
Public transportation is not only a budget-friendly alternative with a monthly cost of up to $100 but also a faster way of getting around compared to self-driving.
Upstate New York:
Upstate New York is a significant area to live in because it gives you an entirely different lifestyle and is quite affordable.
Cities such as Buffalo, Rochester, and Syracuse offer picturesque and comparatively leisurely living with fewer housing expenses.
New York neighborhoods like Brooklyn, Queens, or even Long Island are a cheaper alternative compared to Manhattan.
An average 2-bedroom price in Queens is approximately about $2,800. A 2 bedroom apartment in Nassau County could be around $3,200 a month. The cost of living is lower than in NYC, but still more than the national average.
In the 2023 study conducted by the National Low Income Housing Coalition, the fair market rent for a two-bedroom unit in Buffalo, New York is $1,278. Unlike New York, it’s not too busy.
States like Texas and those in the Midwest offer a sharply lower cost of living compared to NYC.
What About Single People?
Individuals with an income of $81,396 or lower can maintain the same standard of living as a single person in New York City.
How much lower? It is really hard to judge, but experts say it could be between 60%-70% of the cost. It turns out to be the number that covers from about $48,800 to $56,972 per year.
Cheaper living costs don’t make it easier to live a single life in NYC. Rent is something that is holding back people from owning a house.
Yet, you don’t need a four-bedroom apartment but you can still pay $2,800 per month for a decent one-bedroom in Manhattan. That means that the rest of your salary will go to grocery shopping, utilities, the metro and the fair issues.
Tips to reduce the expenses in NYC in 2024:
Minor changes can add up to big savings. Living comfortably in NYC requires creativity and flexibility. We will discuss cheap ways to get around the city.
1. Housing Hacks:
- In NYC, housing costs reflect the largest portion of living expenses. Choose a smaller apartment or live with a roommate.
- Look for housing in Queens or Brooklyn instead of Manhattan to save money.
- It is important to negotiate your rent, especially if you’re a tenant with a good payment history. Negotiation can contribute to notable savings.
2. Transportation costs:
- Get a Metro card for affordable and convenient travel on the subway.
- For casual longer trips, go for bike-sharing options or carpooling with friends or buddies.
- NYC is a very walkable city. Travel to your neighborhood places on foot. It’s healthy, cheap, and fun.
3. Food:
- Cook food at home and planning meals can save money on groceries.
- You can buy fresh, inexpensive groceries at your local farmer's market.
4. Extra costs:
- Travel to the city’s amazing parks, visit museums on free admission days or take advantage of free cultural events.
- Saving money on entertainment with free outdoor concerts or movie nights in the park. Board game nights at home are just as fun (and cheaper) than going out.
- Look for discounts and deals. Many restaurants have weekday lunch specials and there are often coupons for events.
5. Medical expenses:
- Ensure the right health insurance policy covers your family and fully leverages your benefits.
- Regular health checkups and vaccinations help keep your family healthy and save money.
Cost of living calculator:
Here are some tips for searching economical locations:
- What affects most to you? Is it affordable housing? Easy access to outdoor activities? Or a strong job market? Identifying your preferences will help narrow down your search and find a location that fits your needs and budget.
- Use online cost-of-living calculators to analyze the cost of living in distinct cities across the US. Look at your lifestyle choice, city or suburban peace.
So, what do you think? Have you discovered any creative ways to save money in the city? Share your experiences and tips for handling the cost of living in New York City in the comments below.
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