The Harsh Reality of N.Y.C Real Estate and The High End Price Tag That Comes With It

The costs associated with New York City are hard to determine because it depends on so many different factors. For one, where are you living? For two, what is your source of income? It should also be noted that New York City has some of the highest income taxes in the country and the people that live there have some of the most housing as well.

Renting in New York City

The medium Rent for a two-bedroom apartment in New York is $2,499 in New York City with a one bedroom coming in at $2098 a month. The high costs of living start with the high costs to actually rent an apartment there.

The cost of living in NY is one of the most expensive in the world according to apartment ratings around the world. It far exceeds the average rent for most of the rest of the country with a studio room averaging $827, a one bedroom averaging $947, and a two-bedroom averaging $1,175. That makes the studio $1,062 more in New York City with the one bedroom coming in at $1,151 more and the two bedrooms being $1,324 more. New York City is really expensive to live and rent in.

Buying a House in New York City

The costs associated with buying a house in the New York City metro are equally high coming in with a median sale price of $403,900. This price is for a single family home. This cost includes what is considered the suburbs of New York City. In the city area itself, the costs are well over $1 million for a one-bedroom apartment near the city center. The prices go up the closer you get to the center of the metro area.

Between 2000 and 2018 the homes in New York City have raised $4.52% in value. This rate of appreciation means that if someone bought a home in 2000 and sold it today, they would definitely make the money back on their investment and then some.

Utilities

The utilities for a place of only 915 Square-feet in New York City costs $145.55; that number covers the heating, electricity, water, and garbage which is actually less than the national average of $152.02. The cost of the internet is roughly the same in New York City as it is elsewhere in the country which is $62.77 compared to the rest of the country which pays $62.50.

Transportation

Transportation costs are one of the most expensive things Americans will pay for. The means buy your car, maintaining it, putting car insurance on it and finding a place to store it. Mass transportation means paying for a pass as well as parking if you drive to catch the train or bus.

People generally try to avoid owning a car in New York because of the expenses associated with long-term parking and trying to drive around the city. It costs $606.37 a month to park your car. Washington D.C. parking is $260.08. It costs less to park around Washington D.C. than New York City. Parking rates are going up everywhere as cities tighten up what little space they have left.

Gas prices in New York are some of the highest in the country averaging $3.08 which is higher than the national average of $2.89. Insurance for a car that is being used in the heart of New York City runs upwards of $4,400 per year.

A lot of American like their vehicles, but in New York City, taking the city’s public transit system isn’t bad. In fact, it is one of the best in the country. It is also one of the most expensive at $127 a month. Los Angeles costs $100 and Chicago $100 which means that they are keeping pace with one of the busiest cities in the world.

Food in the Big Apple

$471.24 a month per person is what it costs to feed a person living in New York City. The national average is $324.20; so even the food is about $150 more than the rest of the country. New York City is also famous for its world-class restaurants so if someone eats out more frequently the number quoted above can become per meal.

            The reason given for the higher food costs is thought to be because of the costs associated with having to pay more for commercial leases and storage space. The work’s wages are also higher in the city for the rest of the state. A is also difficult to deliver food because of the number of people and cars in the city.

Entertainment in the City

If you are lucky enough to be able to go out and enjoy yourself then it will cost you. The average movie cost $15.25 a movie. If you are going to see one of the amazing teams the city has then you will be charged $87 to $190 depending on the seats you have. The Mets have an average ticket price of $27.60 with a Yankees ticket coming in at $47.62

One place for free entertainment in New York City is to visit the subway platforms across the city where a lot of the musicians, dancers, and actors perform with regularity. You are bound to find something you like on one of the platforms.

Final Thoughts

Living in New York City is expensive, but is manageable if you are determined to follow a path that will take you to the city to succeed. The costs of living are also going up around the country so there are many cities approaching the levels of New York City in terms of costs. It is still more expensive than most in a lot of ways, so make sure you have everything in place and ready before you move there. Having some savings wouldn’t hurt either.

Tips:

• Finding a financial advisor would be a prudent step to making sure you have your finances in order before you move. Finding the right advisor can help you be smart about your move and make the most of the funds you do have so you can not only enjoy your time there but thrive there.