For most people, to live in New York is a dream come true. The city allures everyone with its magnificent skyscrapers, numerous places to visit, vibrant entertainment, and an incredible mix of cultures.
To put it simply, everyone would love to live in NY. But can everyone afford to?
New York’s cost of housing is the city’s largest expenditure according to the US Bureau of Labor of Statistics. This leaves non-New Yorkers planning to move there with questions about the true cost of housing.
If you’re planning to move to NYC, this article offers you a breakdown of the cost of living in New York’s high-rise apartments and how much salary you need to afford an apartment here.
Let’s dive in!
Average Cost of Rent in New York
In New York, there are 6,000+ apartments up for rent with a total of 2000+ listings. One-bedroom apartments are the most common while 4-bedroom apartments are the least demanded.
Below is a quick breakdown of the average cost of high-rise apartments in New York:
- A studio apartment in New York costs on average $3,638 per month
- A one-bedroom apartment in New York costs on average $4,761
- A two-bedroom apartment in New York costs on average $6,188 per month
- A three-bedroom apartment in New York costs on average $6,544 per month
On the same note, below are other important bits of statistics on the cost of high-rise, furnished apartments:
- 1% of apartments cost less than $1,000 per month
- 10% of apartments cost $1,000-$1,999 per month
- 29% of apartments cost $2,000-$2,999 per month
- 60% of apartments cost more than $3,000 per month
Manhattan’s Most Expensive and Affordable Neighborhoods
We pick Manhattan as an example because it’s New York’s most popular borough and the most visited. In fact, most people believe Manhattan is New York’s synonym.
Here are the most expensive neighborhoods in Manhattan in terms of average monthly apartment rent:
- Midtown – $12,072
- Tribeca – $11,507
- SoHo – $9480
- Flatiron District – $8775
- Chelsea – $8633
When it comes to neighborhoods with the most affordable apartment rent, Inwood takes the lead. See how much you can expect to spend on rent if you choose to stay here:
- Fort George – $2140
- Washington Heights – $2300
- Hamilton Heights – $2385
- Chinatown – $2523
How Much Salary Do You Need to Rent in New York?
Using the 30% rule, we can estimate the salary required to rent a high-rise apartment in New York. Remember, if these figures are too high for you, you can always look for a roommate or two and significantly reduce your monthly rent.
To rent a high-rise apartment in New York, your annual salary should be:
- Around $145,520 or higher if you rent an average-priced studio apartment
- Around $190,440 or higher if you rent an average-priced 1-bedroom apartment
- Around $247,520 or higher if you rent an average-priced 2-bedroom apartment
- Around $261,760 or higher if you rent a typical three-bedroom apartment
Useful Tips For Looking for an Apartment in NYC
Regardless of how tight your budget may be, chances are there is an apartment somewhere that suits your budget in NYC. Follow these tips when looking for an apartment:
- Don’t spend more than 30% of your income on rent
- Use comparison websites to help you locate affordable apartments available for rent in your preferred neighborhood.
- Find roommates to live with and share the cost
- Find an extra job if you do not want to get a roommate
- Involve your family and friends; they might know of or recommend a good place
Finally, don’t be afraid to negotiate with the landlord. Some landlords would rather collect rent that is short of a few dollars than let their apartment lie idle for months.
How Much Can Co-Living Save You on Rent?
Co-living has recently gained popularity as a result of housing startups that provide affordable housing shared by two or more roommates.
A private room in a co-living space costs about $1,600 on average in NYC. Renting these kinds of spaces instead of going for 1-bedroom apartments for example could help you save $14,000+ per year.
Your dreams of living in New York are valid, even with all the hype surrounding the high cost of living in New York. For example, if your budget is super tight, a studio apartment or co-living with friends will suffice.
In such a case, you might want to avoid expensive places like Manhattan where the average rent stands at $12,000+. Instead, try looking for apartments in pocket-friendlier neighborhoods like Inwood where rent can go for as low as $2,000 per month.