Average Cost To Rent New York City Apartment Up 18% Over Last Year Report Finds
May 20, 2022 / 7:32 AM / CBS New York
NEW YORK — Rent is on the rise in the New York City metro area, especially for studio apartments.
According to Realtor.com’s April rental report, the average cost for renting a studio apartment jumped 29.1% to $2,581.
For a one bedroom, it’s $2,573, up 12.2%, and for a two bedroom, it’s $3,166, up 13.1%.
Overall, the average cost to rent an apartment is now $2,845, an 18% jump over April of last year.
Cost Of Living In New York Ny 2021
New York City is a cultural hub, financial center, and media hotbed with something for just about anyone. New York City is the arts. It’s fashion, education, technology, entertainment, sports, and more, all rolled up into a neat five-borough package.
Known for its legendary skyline and status as a bonafide megacity, New York City draws thousands of new residents every year.
Of course, every new resident of the Big Apple must contend with a high cost of living. It’s difficult to live comfortably in a city that requires you to spend most of your paycheck on rent.
However, it is possible to successfully make the move to New York, provided you take care to plan your budget thoroughly.
This guide will help any new prospective NYC resident build their budget to live comfortably in the Big City. Here’s everything you need to know about the cost of living in New York City.
Food Costs In New York
New York has some of the best chefs in the world, serving delectable food in everything from a small bar to a high-end restaurant. Due to sales tax, overall rent prices and other factors, food is more expensive when eating out.A basic dinner at a small pub for two will cost around $60 on average.
Groceries are also on the high end of the spectrum 48.1 percent above the national average. A steak in Manhattan at the grocery store will cost $14.38 per pound versus the same steak in Austin, TX . Expect to see a dozen eggs cost $2.92 and bread at $4.48.
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Catch A Game In The City
In New York, you have at least two home-team options for every major sport in the US.
Like basketball? Root for the Knicks or the Nets. Football? The Giants or the Jets. Baseball? The Yankees or the Nets.
Regardless of the team, you’re rooting for, you’ll need to consider the cost of attending a game in your budget. Here’s a breakdown of the average ticket costs for some of New York’s sports teams.
- New York Knicks: $82
- New York Jets: $64
Cost Of Living In Nyc: Utilities
Renters often forget to factor the cost of utilities into their renting budget. As of 2019, the average cost of a basic utilities package in a 915-square-foot apartment in New York was $145.55 per month. That includes:
New Yorkers are getting a pretty good deal. The average cost for basic utilities across the U.S. is slightly more at $152.02 per month. The average monthly cost of internet is also similar to the national average, at around $62/mo.
If youre renting an unfurnished apartment, you will likely need to set up these utilities yourself. When you rent a fully furnished apartment, however, the utilities are often already set up prior to your move-in.
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How Much Does It Cost To Rent An Apartment In Nyc A Complete List Of Fees
Fees will vary depending on the type of building you rent in and whether you end up paying a broker.
Setting yourself up with a rental apartment in New York City requires a reality check on how much you can afford and plenty of paperwork. There are also various fees, upfront costs that youll need to pay to the broker and sometimes the landlord to secure the apartment. New rent laws passed earlier this year put some limits on the amounts that landlords and brokers can collect from you upfront, but there are still a host of other fees that you will be required to pay.
The number of fees will vary depending on the type of building you decide to rent in and whether you end up having to pay a broker fee. For example, there are certain websites that specialize in providing rentals that waive the broker fee or where the landlord pays it, but that means you wont have a broker working for you and will have to conduct the search yourself.
Likewise, if you have your heart set on an apartment in a condo or co-op building rather than a rental building, there may be additional fees charged by the board as a result of the buildings specific sublet policies.
How Much Do I Need To Make To Live In New York City
Are you sitting down? Good. Before we get to the magic number, let’s talk about budgeting. Experts agree that you shouldn’t spend more than 30 percent of your pre-tax income on rent.
If we take that rule and apply it to living in New York City, you need to earn at least $158,200. It sounds like a lot, but if we take the city’s average rent of $3,955 and multiply it by 12 months in a year, we get $47,460 a year you’ll spend on rent. And since rent should only be 30 percent of your pre-tax income, that puts your minimum pre-tax annual income around $158,200.
This number changes all the time, so check out ApartmentGuide.com’s free rent calculator to figure out your monthly budget.
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New York State Rent Increases & Fees
- Rent Control / Increase Limitations. New York state landlords can raise rent only after the lease has ended.
- Notice Required to Raise Rent. For month-to-month tenancies, New York landlords must provide 30 days notice from next rent due date.
- Bounced Check Fees. New York state landlords may charge up to $20 for bounced checks.
The High Cost Of Living Is Driving People Out Of The City
New York City’s sales market, like its rental market, is also outrageously expensive. In fact, prospective buyers who earn the city’s average annual household income of $62,000 must save $3,100 per year for 36 years in order to afford a 20% down payment on a median-priced home, which, as of June, is $558,000.
And the wealthy are feeling the heat too.
According to a SmartAsset study, New York is the No. 1 state rich millennials are moving away from. The study, which defined rich millennials as people who are younger than 35 with an adjusted gross income of at least $100,000, found that 14,915 of them moved out of the state from 2015 to 2016.
Business Insider’s Katie Warren previously reported that wealthy New Yorkers looking to avoid the city’s high taxes can save more than $1 million by moving to Florida.
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Other Expenses To Consider In New York City
The budget for your move to New York City should be airtight, meaning you’ll have to account for the expenses that typically get forgotten on most budgets.
We’ve got you covered with an in-depth look at the hidden costs of living in New York City.
- Sales Tax: The combined city and state sales tax rate in New York City is 8.5%, but can vary depending on what you purchase and its cost.
- Income Tax: New York State levies an income tax rate on a sliding scale. Depending on your income, you can expect to pay anywhere from 4% to 10.90% in income tax. Additionally, you’ll have to pay the city’s imposed income tax which ranges from 3.078% to 3.876%, depending on your income.
- Parking Costs: The average cost of monthly parking in New York is $570 per month or $6,840 annually. You’ll have to consider this cost on top of the 10.375% tax and an additional 8% surtax on parking, garaging, or storing cars in Manhattan.
How Much Rent Can You Afford In New York City
New York, New York, if you can pay rent here, you can pay rent anywhere. But how much you shell out can skyrocket, depending on what address you end up calling home.
But hey, dont worry. Theres a perfect apartment out there for every budget. I myself have lived in five rentals in two boroughs at varying income levels. And I loved each one, whether it was a duplex in Brooklyn or an Upper West Side walk-up.
The first step, of course, in finding your perfect New York City apartment is determining how much rent you can pay. So before you start looking at subway maps and comparing the Bowery to Bed-Stuy, lets crunch the numbers.
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Goods And Services Costs In New York
New York remains 32.8 percent above the national average when it comes to goods and services.
Are you thinking of taking your date to the movies? Get a haircut for $23.25 on average, and then grab a movie ticket for $16.31 each for new releases.
If you’re into yoga, a class costs $20.49 on average. Luckily, you can also get in your steps on the way there and back thanks to the city’s walkability.
Enjoy a long walk through Central Park or the Highline with your pup on the weekend. In case your four-legged friend needs a regular check-up, you can spend $91.29 per visit at the vet’s office.
How Much Is The Cost Of Living In New York City
Living in New York City can be an attractive choice because of all of the culture and opportunities that exist there. However, it is important to consider what your budget will allow before moving to The Big Apple.
So how much is the cost of living in New York City? If you want to compare your salary to how much the cost of living is in NYC, it can be helpful to know that the average cost of living in New York City for a single person a month is estimated to be around $1,814.00 without rent .
Therefore, if you are considering a move to NYC, or if you currently live here and want to know how your budget will be affected, this article may be helpful. We answer questions such as: How much does rent usually cost per square foot in NYC? What is the average salary for someone living in NYC? Andhow do these compare to other parts of New York State?
Also, the median rent in NYC is $3,805 for a one-bedroom unit and $5,748 for one that has two bedrooms.
Another thing to consider when you are shopping for NYC rentals is that apartment and office space prices that were down because of quarantine are starting to inch up again. As such, now might be the right time to move to the Big Apple and lock in lower rental rates.
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Which Professions Can You Find In Nyc
New York City is a magnet for high-wage earners, business owners and start-ups. The most common occupation in New York City is Management, Business and Financial Operations. The second largest group is Sales & Related Occupations. Another popular profession for NYC residents is Business Operations Specialists.
Knowing What You Want
New York City offers some of the most varied housing options anywhere as a result, you have many excellent options. Thus, it is important to focus in on some specifics in order to make your search as productive as possible. Some of the key items that you should resolve early on are as follows:
Your budget.For obvious reasons, this is probably the single most important factor. The price of an apartment depends on a variety of factors – size, location, condition and features, among others – so it is critical that you determine your budget at the outset. As a general guideline, studios typically cost $1,800 to $2,500 per month one bedrooms are from $2,250 to $3,750 per month two bedrooms are from $3,500 to $6,500 per month and three bedrooms range from $4,500 to $10,000 per month.
Neighborhoods of interest.Manhattan has dozens of neighborhoods, each with its own flavor and personality. A number of factors can effect where you live: you might want to be close to work or your children’s schools maybe being close to a park is important perhaps being close to great restaurants and cafes is key. The good news is that New York offers something for everyone – if you are not that familiar with the city, please review our neighborhood info.
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Transportation Costs In New York
New York City public transit comes immediately to mind when we speak about the extensive rail. The subway does go everywhere, allowing residents to forgo a car. Transportation in New York lands 31.7 percent above the national average.
The average commute for a New Yorker is 40 minutes, according to a recent study.
New York has a 100 transit score, thanks to the MTA. A one-way ticket on the subway costs $2.75. A 7-day pass is $33, and a monthly 30-day pass is $127 with unlimited swipes on the buses and subway.
You can navigate the city’s perfect grid by foot too with a 99 walk score. Or if you prefer two-wheels, NYC’s bike score is 86 with plenty of infrastructure for bikes.
Those who just can’t avoid driving in the city expect to pay $33 on average for two hours a mile from the city center. You’ll also spend nearly 107 hours a year looking for a parking spot about $2,243 lost time cost per driver.
How Much Notice Is Needed For Raising Rent
In the state of New York, landlords must provide tenants with a 30-Day Notice, before they can increase rent more than 5%. A 60-Day Notice is required for tenants who have rented for between 1 and 2 years, and a 90-Day Notice is required for tenants who have rented for more than 2 years ).
If the landlord fails to provide the appropriate amount of notice, the tenant may continue at the existing rental rate even if the lease has expired and the landlord may not seek to evict the tenant for failing to pay the increased rental amount.
Landlords renting regulated properties must provide tenants with 90-120 days notice before raising rent.
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Cost Of Living In Nyc: Rent
The U.S. Bureau of Labor Statistics found that housing is the largest expenditure category for New Yorkers, making up 38 percent of their overall budget in 2018-19. In comparison, the U.S. average is 32.7 percent.
Rent prices will vary by neighborhood, so this guide will look at average rent overall in NYC as well as average rent in favorite neighborhoods and across housing in the five boroughs.
As of March 2019, these were the median rents for apartments in New York City compared to apartments nationally:
New York hopefuls can control these costs somewhat based on the neighborhood they choose for their housing. In 2018, Business Insider compiled average rent prices for Manhattans 28 neighborhoods, listed here from least expensive to most expensive:
Studio and one-bedroom apartments in Manhattan are on the lower end of the above averages, while two-bedroom apartments are slightly more expensive. Of course, you cant forget about New York Citys other boroughs. As of 2017, here are the average rents for each borough:
Looking to find housing in one of these five boroughs? Save by renting already furnished apartments in NYC and apartments that offer flexible, short-term leases.
Is There A Rent Increase Limit
If a tenant is renting an apartment that has no rent stabilization or rent control, the landlord may charge any amount that the two parties agree upon. If the rental property is subject to rent stabilization, the maximum amount a landlord may increase rent is established yearly by the Rent Guidelines Board. Rent controlled properties have strictly controlled rental rates. It should be noted that these units may be passed from one family member to another preserving the rent-controlled status of the property. When a rent controlled unit becomes vacant, it can be leased at the current market rate.
In counties where there is no rent stabilization, Major Capital Improvements that benefit all the property tenants, will allow a landlord to raise rent a maximum of 2% annually NYS A08281).
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Calculating Your Average Monthly Expenses
What follows is a ballpark calculation for average monthly expenses.
Utilities $270, Transportation $130, Groceries $300, Healthcare premium $660, Fitness $80, Sports event $30, Internet/cell phone/ cable TV/ 2 premium channels $200, Netflix $14, Dinner once a week $100 and a movie at a theatre twice a month $30.
To get a baseline of the monthly cost to rent a one-bedroom apartment in Brooklyn and pay average monthly expenses, take $2,866 rent costs and add it to the monthly expenses from the above paragraph: $2866 + $1,814 = $4,779/month or $57,348 annually. Its also good to add in a factor of 4-5% in case you went too conservatively and to account for unanticipated expenses.