Cost of living in New York: What it really costs to live in the Empire State

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New York consistently ranks among the most expensive states in the U.S., with its overall cost of living well above the national average. Homeowners typically face monthly expenses of around $10,437, while renters average about $6,042 per month. These figures place New York sixth overall in national rankings, a position that reflects both its urban density and limited housing supply.

Much of the expense comes from housing, but groceries and transportation also cost far more than what most Americans typically pay.

Which states are the most expensive to live in? See the full ranking

Hawaii tops the list as the most expensive state to live in, with total monthly spending averaging more than $14,000 for homeowners and over $8,000 for renters once housing costs are factored in. Massachusetts and California follow closely, both pushing homeowner budgets past $12,000 a month.

New York ranks 6th overall, with households spending an average of $10,437 per month for homeowners and $6,042 per month for renters when housing is included. The result: monthly budgets in the Empire State consistently climb into five figures for homeowners, cementing New York’s reputation as one of the hardest places in the country to afford day-to-day life.

New York cost of living breakdown by category

Housing is the single largest expense in New York, with prices that outpace most of the country by a wide margin. Whether buying or renting, New Yorkers devote a much larger share of income to securing a home. This is especially true in New York City, where apartments often cost several times the national average. Beyond housing, other categories contribute heavily to the state’s overall expense profile.

The table below shows how much different groups — homeowners, renters, and families with children — spend each month when you add up housing, groceries, utilities, transportation, healthcare, and other costs. It’s a clear picture of just how quickly the bills stack up in the Empire State.

How New York compares to the national average

New York really stands out when you look at housing and day-to-day spending. Rent and mortgage payments run about 70% higher than the national average, and other essentials like groceries, utilities, transportation, and healthcare also cost more. Together, these added expenses make daily life noticeably pricier in New York, even when factoring in the higher wages offered in some industries.

Monthly living costs for renters and homeowners in New York

Renters in New York spend less than homeowners, but their costs are still well above the national average. The typical renter pays about $6,042 per month, with housing making up the biggest share at over $3,200, followed by everyday expenses like groceries, utilities, and transportation.

Homeowners, on the other hand, face an even heavier financial burden. With monthly costs averaging $10,437, they pay nearly double what renters do. Much of the difference comes from housing: mortgages in New York average close to $4,000 a month, far higher than rent. On top of that, homeowners often spend more across the board — on groceries, utilities, and miscellaneous expenses — pushing their overall budgets into five figures.

This gap highlights how owning a home in New York can be significantly more expensive than renting, even though both groups are paying far more than the typical American household.

The tradeoff: renters save thousands each month, but homeowners are building equity for the long term.

Why discretionary spending runs so high in New York

Beyond housing, transportation, and food, New Yorkers devote a big share of their income to lifestyle spending. Dining out, cultural activities, and entertainment in the city can easily rival housing as a major budget item. The state’s vibrant nightlife, restaurants, and attractions make it easy to spend more than expected.

According to the Bureau of Economic Analysis, New Yorkers spend roughly $40,000 annually on personal expenditures beyond the essentials. This figure places the state among the highest in the nation for non-essential spending. In urban centers, lifestyle choices add another layer to the high cost of living.

How much money do you need to live comfortably in New York?

Applying the 50/30/20 budgeting rule, a homeowner in New York would need to earn between $125,000 and $135,000 annually to manage monthly costs around $10,437 and still save for the future. This income level allows households to cover needs, wants, and savings while keeping pace with New York’s unique financial demands.

For renters, the threshold is somewhat lower, but still steep compared to most states. With monthly expenses averaging $6,042, a renter would need around $80,000 per year to live comfortably. In New York City, however, both figures climb much higher, with six-figure incomes often required to achieve the same financial balance.

Estimate your costs with our cost of living calculator

Our cost of living calculator makes it easy to see how far your money will go in New York compared to other states. It factors in major expenses like housing, transportation, health care, taxes, and even essentials such as home and auto insurance—giving you a realistic picture of what daily life might cost.

Whether you’re considering a move to New York or just curious how your current city stacks up, the calculator helps you understand the trade-offs. You’ll see where New York is more expensive, where it’s comparable, and how much income you’d need to maintain your lifestyle.

For a deeper dive, cost of living state guide, which offers side-by-side comparisons and insights into how New York measures up against every other state.

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New York (Brooklyn) City, NY Boise City, ID

$31,500

Cost of living in Boise City, ID, after-tax

Cost of Living

37% lower

in Boise City, ID, than New York (Brooklyn) City, NY

Auto Insurance

46% lower

in Boise City, ID, than New York (Brooklyn) City, NY

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Compare cost of living: Boise City, ID, vs New York (Brooklyn) City, NY

Cost in
Boise City, ID

------- vs -------

Cost in
New York (Brooklyn) City, NY

Housing

-64%

Groceries

-8%

Utilities

-34%

Transportation

-4%

Healthcare

-22%

Misc. Goods & Services

-7%

Auto Insurance

-46%

Home Insurance

-33%

Auto Insurance

• New York (Brooklyn) City, NY: $2,453
• Boise City, ID: $1,321
• % Change: 46% lower

Find Insurance Cost in Boise City, ID

Home Insurance

• New York (Brooklyn) City, NY: $2,694
• Boise City, ID:
  $1,809
• % Change: 33% lower

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L O A D I N G

Factors driving New York’s high cost of living

One of the biggest drivers of New York’s high costs is the demand for housing, particularly in New York City. The high startup cost of building new housing in the city and the constant demand for it push rents and home prices far above the national average. This has a ripple effect, raising prices in surrounding areas as well.

High property taxes also play a role, especially in suburban counties around the city, although New York does offer some of the best bang for your buck in terms of what those taxes actually cover.

[quote from Judy Zhou, real estate agent, TKTKTK]

Most affordable places to live in New York

While New York City dominates conversations about cost of living, other areas of the state are much more affordable. Albany, Rochester, and Buffalo all offer significantly lower housing costs. Residents in these areas can enjoy many of the same amenities as larger cities but with far less financial strain.

In general, Upstate New York provides a more budget-friendly lifestyle. With lower property taxes, reduced rent, and less competition for housing, these cities appeal to families and retirees alike.

Who pays the price for New York’s high cost of living?

Families living in metropolitan areas often feel the squeeze most acutely. Between high housing payments, childcare expenses, and daily transportation costs, the costs can quickly add up and stretch budgets. These households often need two full incomes to make ends meet.

Retirees feel the squeeze as well, especially in areas with high property taxes. Living on a fixed income makes it tough to keep pace with rising expenses year after year. Meanwhile, younger professionals in New York City may earn higher salaries, but they face a different challenge: sky-high rents and lifestyle costs that quickly eat into their paychecks.

How to save money while living in New York

Finding ways to save in New York often comes down to making smart choices about where you live and how you get around. In New York City, opting for more affordable boroughs or neighborhoods outside Manhattan can cut housing costs dramatically, and the extensive public transit system makes it possible to avoid the high expense of owning a car or relying on rideshares.

Outside the city, many New Yorkers turn to suburban or upstate communities for relief. These areas often offer lower housing costs and property taxes while still providing access to jobs and amenities through regional transit networks. Choosing the right location — whether it’s a commuter-friendly suburb, an upstate city like Albany, or a neighborhood well-served by trains — can make the state’s high costs more manageable without sacrificing quality of life.

Why people choose New York despite the costs

The benefits of living in New York are clear: a strong job market, cultural diversity, and access to world-class institutions. Public transit in New York City makes car-free living possible, and the state’s mix of urban and rural areas offers variety for every lifestyle. Many residents feel that the opportunities outweigh the challenges.

Still, affordability remains a concern. Housing is often the biggest expense, with higher-than-average rents, property taxes, and mortgages. Everyday essentials also tend to cost more than in many other parts of the country, putting extra pressure on household budgets.

Zack Sigel

 

 . .

Zack Sigel is a writer and editor based in New York City. He has been managing editor at Policygenius and M1 Finance, where he led teams specialized in writing about business and finance, and he has also written about music and culture for Hyperallergic, VH1, Complex, and the Los Angeles Review of Books. Zack has a bachelor's degree from New York University, Tisch School of the Arts.

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