From time to time, many of us have probably dreamed of moving to New York to pursue our dreams — after all, if you can make it there, you can make it anywhere.
Of course, New York City has always been a pricey place to live — in 2021, it was the sixth most expensive city in the world to live in. Now, in 2023, it’s tied with Singapore as the most expensive city in the world.
So, what caused this sudden change in New York’s cost of living? How was this determination made in the first place? And what can you do to bring your living expenses down if you’re living in New York (or plan to move there soon)? Read on for answers.
What Factors Are Considered When Ranking Cities?
The first thing to know is that the cost of living has gone up worldwide. According to the EIU, prices have jumped an average of 8% over the last year alone — a pace that outstrips the last twenty years of cost increases. The main culprits for this include the war in Ukraine, the continuing supply chain issues and restrictions created by the COVID-19 pandemic, and runaway inflation. The price of petrol has risen by a whopping 22%, and gas and electricity have gone up by 29%.
What Factors Have Pushed NYC to the Top of the List?
New York has always been an expensive place to live, with some of the highest rent and property values in the country. But what caused this sudden spike in living expenses? According to the EIU, there are two major reasons. Along with the inflation and supply chain problems plaguing everywhere else, New York is particularly affected by the high value of the dollar (which has strengthened over the past year) and the high average income in New York, which will bear such high prices. As an affluent city, New York naturally attracts a lot of high-end stores and companies. Things like real estate in New York are also in extremely high demand, which naturally leads to higher prices.
The Most Expensive Neighborhoods in NYC
So where are the most expensive neighborhoods in the city? The most expensive neighborhood is most likely NoHo in Lower Manhattan, with a median home price of $3.27 million. Situated in the heart of the city, it’s in very high demand with very low inventory.
Hudson Yards in midtown Manhattan is an up-and-coming neighborhood with (literally) million-dollar views and plenty of luxury condominiums. The average sale price here is $3.2 million, which still only leaves room for the high rollers.
Another pricey neighborhood that you’ve probably heard a lot about is Tribeca, which is highly popular with celebrities and tech workers. While some home prices in Tribeca go up to $4 million, the median price of a home there is still “only” about $3.1 million. Like Hudson Yards, Tribeca is home to a lot of new loft apartments and luxury high-rise condos.
Your only saving grace when moving to New York may be your home insurance — according to numbers from Kristine Lee at The Zebra, you can get cheap home insurance in New York for about $72 per month, which is significantly lower than the national average.
Lowering Your Living Expenses in New York
Living in New York City is never going to be cheap, and trying to keep your expenses down may require a constant hustle. But there are time-honored strategies used by the residents of New York that can help you make New York a little more affordable.
First, consider your transportation options. The iconic New York Taxi is cemented in the minds of everyone who’s seen popular films set in New York, but it’s not the cheapest way to travel. Walking or biking wherever possible is as cheap as it gets, and public transportation options like subways, ferries and buses are not far behind.
Next, consider your food choices. New York is home to some of the most fabulous eating establishments in the world, but eating out will break your bank fast. Even your daily cup of Starbucks could run you over $150 a month (and that’s before tax and tip). Whenever possible, consider cooking your own food and making your own coffee and save takeout for special occasions, or for when you’re truly fried. To make your dollar go even further, shop at the budget grocery stores instead of Whole Foods and West Side Market.
In terms of property, remember that the further from the city you get, the cheaper it is to live there. As many New Yorkers do, you can also find a roommate or move in with a friend.
Living in New York isn’t impossible — after all, almost 9 million people do it every day. With some shrewd planning and hustle, you can, in fact, make it there.
This content is part of the HWM Partnership.
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