Written by 
Edited by 
Edited by 
It’s no secret that living in New York City is expensive. Before the average NYC resident’s paycheck even reaches the bank, they’re shelling out some of the highest income taxes in the country on both the state and local level. Beyond that, residents face some of the most expensive housing in the country. That’s particularly true for NYC residents who want to be in the heart of it all and live in Manhattan.
No matter where you choose to live, a financial advisor can help manage the cost of living in a city by creating a budget, optimizing cash flow and developing strategies for housing, taxes and long-term savings.
Cost of Renting in New York
The high cost of living in NYC starts with its crazy housing market. According to Apartment List, the median rent for a two-bedroom apartment is $2,496 in New York City. A one-bedroom is slightly less at $2,367.
Each of these rents are far more expensive than not only the U.S. median, but most of the world’s large cities. As of July 2025, the national median rent for one and two bedrooms was $1,231 and $1,387 respectively. That’s a $1,136 deviation for a one-bedroom apartment and a $1,149split for a two-bedroom apartment. The following prices from ApartmentList.com and show the median rent overall in NYC compared to other major cities.
Median Monthly Rent: New York City vs. Major U.S. Cities
| Type of Unit | New York City | Philadelphia | Washington, DC | Boston | Los Angeles |
|---|---|---|---|---|---|
| All Units | $2,480 | $1,436 | $2,211 | $2,466 | $2,089 |
| 1 Bedroom | $2,367 | $1,313 | $2,007 | $2,371 | $1,868 |
| 2 Bedroom | $2,496 | $1,519 | $2,218 | $2,497 | $2,382 |
Cost of Buying a House in New York City
The classic dilemma of “buy vs. rent” always comes up regardless of where you’re living. In the case of New York City, a single-family home in the New York metro area has a median sales price of $701,400, based on 2024 data from the National Association of Realtors. While this might sound favorable, remember that the metro area consists of not only New York City proper, but also the nearby areas that surround it.
Buying in the city itself can be much pricier, especially if you want to live near the city center; it’s not unheard of to spend more than $1 million for a one-bedroom apartment in Manhattan. Mortgage rates, however, tend to mirror those available in other major cities. (If you want to know how much house you can afford, stop by SmartAsset’s home affordability calculator.)
One major advantage of the New York City housing market is its strong appreciation rates. According to the Federal Reserve, from 2020 to the first quarter of 2025, the overall housing market appreciated 52%. The table below is based on data from the National Association of Realtors for the fourth quarter of 2021.
Median Single-Family Home Prices: New York City vs. Major U.S. Cities
| City/Metropolitan Area | Median Price | Change (2022 Q4 to 2024 Q4) |
|---|---|---|
| New York–Newark–Jersey City | $701,400 | +15.4% |
| Philadelphia–Camden–Wilmington | $375,200 | +12.6% |
| Washington, DC–Arlington–Alexandria | $673,400 | +8.9% |
| Boston–Cambridge–Newton | $747,300 | +9.0% |
| Los Angeles–Long Beach–Glendale | $906,000 | +6.6% |
Cost of Utilities in New York City
Whether you rent or buy, you’ll have to cover the cost of utilities. According to ApartmentList.com data, in July 2025 the average basic utilities per apartment cost $190.06 monthly, lower than the U.S. average of $207.06. This rate accounts for basic water, electricity, and gas.
The monthly cost of internet service in New York is more expensive, however. According to the most recent data from Highspeedinternet.com the average price for service in NYC is $96.08 compared with an average price of $74.17 nationwide.
Cost of Transportation in New York City
After housing, the No. 1 expense for most Americans is transportation. For car owners, that’s the cost of buying, maintaining, insuring, fueling and storing their vehicle. If you use public transit, you’ll be on the hook for a transit pass, and possibly parking, if you need to drive to pick up the bus or train.
For car owners in New York, parking can be a significant expense. According to 2025 data from SpotHero.com the average commercial parking space costs $570 a month in Manhattan, but only $188 in Brooklyn. Gas tends to stick close to the national average.
As of this writing, AAA estimates the average cost per gallon in NYC to be $3.16, slightly off the national average of $3.14. A five-year average from the Bureau of Labor Statistics follows the same trend. Car insurance is also slightly higher in NYC. According to Experian, the average monthly cost for minimum coverage in NYC is $226 compared with $193 nationwide.
If you’re okay with giving up your car, New York’s public transit system is the best in the nation. Approximately 4.7 million New Yorkers take the bus or subway each day. The base fare for both is $2.90 per ride, although commuters who use an OMNY card only pay for a maximum of 12 rides per week — the rest are free.
Cost of Food in New York City
According to MIT the average food cost per year for a single adult is $4,833. For a working family of four it increases to $14,165 per year. Of course, New York City is famed for its restaurant scene, and those who choose to dine out regularly will see their food budget soar.
There are a number of reasons that contribute to why food and produce is so expensive in New York City. Perhaps the strongest consideration is that the companies that sell the food are forced to pay much more for commercial leases and workers’ wages than in other parts of the country. Delivering food can also be especially difficult in Manhattan, as it’s a densely populated island.
Cost of Entertainment in New York
If you have any money left in your budget after paying for housing, transportation, and food, then you may want to try and enjoy yourself. Well, it’s going to cost you. For movie buffs, NYC has the highest ticket prices in the nation according to a 2025 survey from NetCredit.
New York is famous for its sports teams, too. If you were looking to catch a Brooklyn Nets or New York Knicks game, tickets in 2024-25 averaged $317 and $432 respectively. Baseball fans can check out both Yankees and Mets games. Yankees tickets run around $105 each, and a seat to meet the Mets comes in around $78.
Broadway show tickets average around $140 per show, depending on seats and the show’s popularity. Meanwhile, New Yorkers do have at least one option for cheap entertainment. On a typical weekend night, subway platforms across the city become stages for all kinds of musical performances. Whether you like classical, jazz, hip hop or the blues, there’s bound to be something you enjoy.
Bottom Line
Living in New York City comes with some of the highest costs in the country. Residents face high taxes at both the state and local levels, along with expensive housing whether renting or buying. Transportation, food, and entertainment also tend to cost more than in other major cities, although utility and internet costs are generally in line with national averages. While the city offers a wide range of experiences, from public transit access to cultural events, nearly every aspect of daily life carries a premium price.
Tips for Your Move to New York City
- Managing the high cost of living in New York City is easier with the help of a financial advisor. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- For more information about the financial advisor scene in the city, check out SmartAsset’s list of the top financial advisor firms in New York City.
- Moving to New York City is stressful enough on its own. You won’t want to worry about how easily you’ll be able to access your money. Here are a few banks in the Big Apple to check out: Quontic Bank, NBT Bank, Shinhan Bank America, Signature Bank and Metropolitan Commercial Bank.
Photo credit: ©iStock.com/Beboy_ltd, ©iStock.com/stu99