New York is one of the most expensive places to live in the country, especially if you want to live in the heart of the city.
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In Manhattan, two adults with two children and just one parent working — assuming no childcare costs — would need an annual pre-tax salary of $113,860 to cover their basic needs, according to Living Wage Institute data via MIT’s Living Wage Calculator. If both parents worked, the $30,562 extra needed for childcare expenses means the family would need pre-tax income of $153,065. Below, find out more about New York’s cost of living and exactly how you could afford to live there.
New York’s Cost of Living
Even as a single person with no kids, living in Manhattan requires a salary of $68,338, according to MIT’s Living Wage Calculator, which equates to roughly twice the city’s minimum wage.
Housing is the main driver behind these relatively high income benchmarks in New York. For example, a family of four faces estimated housing costs of a little over $3,000 per month in Manhattan, according to the MIT calculator. Food is also expensive in the city, with a family this size facing around $1,661 per month for this expense category.
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The good news is that salaries in New York somewhat reflect higher living costs, but much depends on your line of work.
As mentioned, the minimum wage generally won’t get you far enough to afford much of the basics in New York, let alone live comfortably. In New York City, the minimum wage has reached $16.50 versus the $7.25 federal minimum.
So even if you’re making more at a job such as in food service or retail than if you lived in many other parts of the country, that still doesn’t mean you can afford necessities like rent, healthcare and groceries. While there may be some workarounds like living far outside of Manhattan with multiple roommates in a below-average rental, it can still be hard to get by.
Instead, realistically affording life in New York often requires figuring out ways to make more money, as you can only cut expenses so far.
Occupations That Pay Well in New York
Beyond working yourself to the bone by taking on multiple jobs, you might have a more realistic path by getting a degree or work experience in a higher-paying industry.
For example, healthcare practitioners and technical occupations have a typical annual salary of $112,190 in New York, according to the MIT Living Wage Calculator. Computer and mathematical jobs pay a typical salary of $124,300, while business and financial operations pay around $111,140, to name a few high-paying areas.
Other areas that likely require more advanced degrees pay even more, like legal professions having a typical salary of $170,570, according to the MIT calculator.
Granted, it can cost over a hundred thousand dollars and take years to gain advanced degrees, so that may not be realistic for many people. However, there are alternative paths, like technology certificate programs that might only take a few months and cost around $10,000, while still leading to six-figure jobs in areas like cybersecurity or data science.
Taking on this debt and going down a new path isn’t easy, but if you want to live comfortably within Manhattan, it might be one of the more realistic options. Consider searching for training programs through the city or from local community colleges for more affordable options.
Granted, not everyone can work high-paying jobs. Those in entry-level or minimum wage roles can’t just shrug their shoulders at not being able to afford necessities. In these instances, options might include obtaining local, state and/or federal assistance, in addition to making some sacrifices, like with the location of your home.
Still, this highlights how living in New York, particularly Manhattan, has become unaffordable for many. The reality is that unless you can work toward a high-paying job, it’s often hard to live in New York.
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This article originally appeared on GOBankingRates.com: If New York Costs $113K a Year, How Could You Afford To Live There?
