Cost of Living in New York: A Guide for Homebuyers
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
If you’re considering a move to New York, you might want to get a good idea of the cost of living in the Empire State before making a decision.
This guide will break down the cost of living in New York, from housing to food and healthcare costs. We’ll provide data from state cost of living index tools and how New York ranks in the nation for livability. Whether you’re moving to the Big Apple or somewhere in between, this guide has you covered.
We’ll also share a handy set of additional online resources to measure and compare the cost of living expenses in different New York neighborhoods.
Yes, You Can Buy Before You Sell. Why Move Twice?
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
What makes up the ‘cost of living’ in New York?
When you’re planning to live in a new state, the cost of living there will be a combination of expenses required to maintain your desired lifestyle. Statista, a leading market data platform, defines “cost of living” as “the monetary cost of goods and services necessary to maintaining a certain standard of living.”
This overall cost will vary significantly based on location, even within the state. But the core living expenses you’ll pay for typically include the following categories:
- Housing (rent/mortgage)
- Energy (utilities)
- Food (groceries)
- Transportation (vehicles or transit systems)
- Healthcare (doctors, hospitals, etc.)
However, the costs often extend beyond these basics to cover other expenses, such as:
- Clothing
- Education
- Childcare
- Entertainment
These elements, when combined, establish the core costs associated with a particular way of living. However, your cost of living will be primarily influenced by your income and debts and how the dollar amounts compare to the costs of basic needs in the New York city where you live — or want to live.
Let’s take a quick look at how you can compare your current living cost with what you might experience if you move to New York.
What’s a New York cost of living index (CLI)?
A cost of living index (CLI) monitors how much these basic expenses evolve over time in different cities or regions. They provide a way to compare the price of maintaining a certain standard of living.
The CLI is calculated by assessing the price of essential goods and services such as housing, food, healthcare, and transportation in different areas.
An index is typically standardized, with a base city or region assigned a baseline index value (often set at 100). Other cities or regions are then compared against this benchmark. For example, a New York or city with a CLI of 120 would signify that living there is 20% more expensive than the base location, while an index of 80 indicates it’s 20% less expensive.
A cost of living index will typically break down and score each basic expense by category. Here are separate scores for New York from the worldpopulationreview.com Cost of Living Index:
- Groceries: 148.2
- Housing: 230.1
- Utilities: 108.7
- Transportation: 106.70
- Health: 102.5
- Miscellaneous: 113.7
New York overall annual cost of living data
Using additional data collected by Forbes, let’s take a closer look at actual dollar amounts and how New York ranks when compared to the other 50 states in the U.S.
- Total annual cost of living: $49,623 — ranks #04 out of 50 states
(Average yearly expenses for housing, food, healthcare, transportation, and taxes)
- Total annual disposable income: $25,247 — ranks #01 out of 50 states
(Total cost of living subtracted from average salary shown in table below.)
New York cost of living data at a glance
| Cost of living factor | Dollar amount | State ranking |
| Annual salary (average) | $74,870 | #2 |
| Transportation costs (annual) | $4,769 | #46 |
| Home price (median) | $441,462 | #12 |
| Mortgage payments (median monthly) | $2,638 | #12 |
| Rental costs (average monthly) | $1,745 | #5 |
| Housing costs (renters and homeowners) | $1,669 | #10 |
| Food costs (annual average) | $4,696 | #15 |
| Healthcare costs (annual average) | $13,012 | #2 |
| Income taxes (average annual) | $7,116 | #2 |
Source: Forbes using data from the C2ER, U.S. Census and BLS reports, MIT Living Wage Calculator, Kaiser Family Foundation, and other public sources
New York tax rates
- State individual income tax rate: 4.00-10.90%*
- State sales tax rate: 4.00%
- Effective property tax rate (percentage of home value): 1.73%
- Median annual property taxes paid: $5,884
- Average annual property tax bill: $12,292
*Some jurisdictions may collect local income taxes
Of 50 states, how does New York rank for livability?
If you’re planning a move to New York, you may be interested in more than just the cost of living data. Here’s a summary of livability insights for the Empire State:
New York livability rankings
- Crime and corrections: #11 (corrections outcomes, public safety)
- Economy: #45 (business environment, jobs, growth)
- Education: #09 (higher education, pre-K-12)
- Fiscal stability: #29 (long- and short-term stability)
- Healthcare: #09 (access, quality, public health)
- Infrastructure: #28 (energy, Internet access, transportation)
- Natural environment: #02 (air and water quality, pollution)
- Opportunity: #49 (Affordability, economic opportunity, equality)
Source: U.S. News & World Report
»See more details about these categories on this U.S. News rankings page for New York.
Additional cost of living indexes
Here are some cost of living index links to research additional New York living expenses:
- Statista: Provides free access to many basic statistics. Paid subscriptions are available for more detailed information about New York communities.
- ACCRA (C2ER): Maintained by the Council for Community and Economic Research. This is a paid service that maintains one of the largest databases of cost of living metrics for most all New York cities.
- World Population Review CLI page: This website provides a free search-by-state tool at the bottom of its Cost of Living Index page.
- Numbeo: This crowd-sourced CLI promotes itself as “the world’s largest database of user-contributed data about cities and countries worldwide.” This service can show you user-provided insights such as the cost of an inexpensive restaurant or the perceived presence of crime in different parts of New York. It’s free for personal use.
Why are people moving to (or away from) New York?
According to the United Van Lines 47th Annual Movers Study that tracks migrations within the United States, here are the reasons people are moving into New York, or moving away to other states.
Primary reasons people are moving
| Inbound | Reason for the move | Outbound |
| 4.10% | Retirement | 21.90% |
| 4.50% | Health | 3.70% |
| 32.30% | Family | 24.80% |
| 8.90% | Lifestyle | 14.50% |
| 30.90% | Job | 19.30% |
| 1.70% | Cost | 4.80% |
Total inbound: 40.0%
Total outbound: 60.0%
How Much Is Your Home Worth Now?
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.
Budgeting for your move to New York
Below is a collection of handy online tools to help estimate your moving costs and living expenses in New York — from how much you’ll need to pay a mover to how much your current home might sell for and the proceeds you can expect.
1. Online move cost estimators
With today’s smart technology, you can find a wide variety of tools to help you estimate the cost of paying for a mover or how to find a trusted mover for your relocation to New York. Some examples include:
- Move.com Moving Cost Calculator
- Consumer Affairs ‘Find a Mover’ tool
- U-HAUL ‘Moving Help Cost’ resource page
2. Cost of living calculators
Cost of living calculators are different from cost of living indexes. These tools, typically free, provide a comparison based on income and regional costs for housing, transportation, food, healthcare, and other necessities in the two locations you select.
For example, if you live in Montpelier and you want to move to Amsterdam. Some popular cost-of-living calculators include:
3. Living wage and budget calculators
- Living Wage Calculator: Designed by the Massachusetts Institute of Technology (MIT), this calculator can help you estimate the local wage rate you’ll need as a full-time New York worker to cover the costs of your family’s basic living expenses in a selected new location.
- Family Budget Calculator: This tool, provided by the Economic Policy Institute (EPI), estimates the income your family will need to attain a modest — yet adequate — standard of living in your selected new community. Choose from 10 family types in all counties and metro areas in New York.
4. Homebuyer calculators
- Home Affordability Calculator: Understand the costs associated with buying a home and find out how much home you can afford before looking at homes for sale or planning a move.
- Down Payment Calculator: Estimate how much you might need to put down on a home and learn more about the loan options that work best for you.
- Closing Costs Calculator: Find out how much cash you’ll need for closing costs on a house, including estimated lender and third-party fees.
5. Home seller calculators
- Home Value Estimator: Get a preliminary estimate of your current home is worth, along with options to help you get the best price when you’re ready to sell.
- Best Time to Sell Calculator: This calculator incorporates nationwide real estate transaction data to help time your move.
- Agent Commissions Calculator: Learn how much you might pay in real estate agent commissions when selling a house in your current market.
- Net Proceeds Calculator: Get a ballpark idea of the net proceeds you could earn from the sale of your existing home.
Selling your current home and buying in New York
To make your move smoother and less stressful, modern real estate solution companies like HomeLight have created innovative programs to help you buy a house before you sell your old one.
Watch the short video below to learn about HomeLight’s Buy Before You Sell program that lets you move into your new New York home now and sell your current house with peace of mind and on your timeline.
Partner with a professional to find your new New York home
As you plan your move, HomeLight can connect you with a top-performing, trusted real estate agent in your current city or in the New York community where you’d like to live. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
For the best of both worlds — coming and going — ask your agent about HomeLight’s Buy Before You Sell program to help take the uncertainty out of your New York home purchase.
Header Image Source: (Brandon Jacoby/ Unsplash)
- "Composite cost of living index in the different states of the United States as of 2022", Statista (June 2023)
- "Average and median property taxes by state: See how much homeowners pay in your area", Business Insider (June 2023)
- Examining The Cost Of Living By State In 2024", Forbes (January 2024)
- "U.S. cost of living - statistics & facts", Statista (December 2023)
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