New York Cost of Living
Can you afford to live in the Empire State?
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If you’re thinking about moving to New York, you’re likely weighing the state’s high quality of life against higher everyday costs. Whether you’re interested in relocating to grow your career, be closer to family or experience rich arts and culture, the cost of living should be a key factor in your decision.
To determine the cost of living in New York, our team reviewed consumer spending data from the U.S. Bureau of Economic Analysis. We then gathered additional data on the costs of housing, utilities, food, transportation and health care to create a fuller picture of everyday expenses.
Curious if your budget could handle a move to NY? Read on to learn more about how much it costs to live in New York.
New Yorkers spend a total of $63,775 each year on goods and services, on average.
Jump to insightThe median rent in New York is $2,978 — almost 82% more than the national median rent.
Jump to insightThe average New York resident spends $266.40 on groceries each week.
Jump to insightIn New York, gas costs an average of $3.16 a gallon.
Jump to insightNew York workers pay an average of $1,854 annually for employer-sponsored health insurance coverage.
Jump to insightThe average cost of living in New York
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in New York is $63,775, or about $5,315 a month.
This figure reflects the value of what residents of the state consume each year across housing, health care, food, gas and energy, and other goods, services and living expenses:
| Category | Annual per capita spending in New York |
|---|---|
| Housing and utilities | $11,350 |
| Health care | $11,343 |
| Food and beverages for off-premises consumption | $4,278 |
| Gasoline and other energy goods | $875 |
| All other personal consumption expenditures | $35,928 |
| Total spending | $63,775 |
Housing costs in New York
New York’s cost of living is especially high when it comes to housing costs. While prices vary by location, Empire Staters face some of the steepest housing-related expenses in America.
The average rent in New York is $2,978 — the highest in the country, and almost 82% higher than the national average ($1,639).
The U.S. Census Bureau’s 2023 American Community Survey reports the following average monthly rents in New York:
- One-bedroom rent: $1,456
- Two-bedroom rent: $1,556
- Three-bedroom rent: $1,784
- Four-bedroom rent: $1,946
It’s worth noting that the state averages are significantly impacted by sky-high rent rates in New York City. In 2024, the median rent in NYC was nearly $3,200 a month — more than double the rent in Albany, Buffalo, or Rochester.
If you plan to buy, the median home price in New York is the sixth highest in the country at $605,200. It’s nearly 36% higher than the U.S. median home price of $446,638.
For homeowners, property taxes are another factor in the cost of housing. With an effective property tax rate of 1.26%, New York has the ninth-highest property taxes in America.
The state’s higher household incomes offset some of these housing costs. However, New York ranks third worst for homebuying accessibility: It would take the typical New York resident more than 23 years to save for a home.
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Food costs in New York
The average weekly grocery bill in New York is $266.40, slightly below the national average of $270.21.
New York also ranks among the states that are least cost-burdened by groceries.
In New York or elsewhere, how much you spend on food can vary a great deal depending on your shopping habits and frequency of dining out. Shopping at budget-friendly grocery stores and preparing more meals at home will help keep your food bills lower, but regularly eating out can add up quickly.
Transportation costs in New York
Empire Staters spend more than the average American on transportation costs — at least when it comes to getting around by car.
In New York, the average price per gallon of regular gas is $3.16. That’s just a few pennies more than the national average ($3.13).
However, it’s significantly more expensive to insure a car in New York than in many other states. The average annual auto insurance premium (for liability, collision and comprehensive coverage combined) in New York is $1,676.31, or nearly a third higher than the national average premium of $1,258 a year.
Fortunately, these high insurance premiums don’t necessarily reflect more dangerous roads. New York ranks in the bottom half of states for road rage, with below-average rates of crashes and fatalities involving reckless or aggressive driving.
Health care costs in New York
New York ranks among the highest in the nation for health care costs — and for health care spending. The average New Yorker spends about $11,343 on health care each year, the fifth-highest per capita health care spending of all U.S. states.
The cost of health care coverage in New York is higher than in many other states. The average annual employee contribution for employer-sponsored health insurance in New York is $1,854. That’s about 13% more than what the average American contributes for an employer-sponsored plan ($1,640).
New York employers cover the remaining $7,319 of the $9,173 total average cost. Compare that to the national average, which has employers covering $6,542 out of a total premium of $8,182.
Over the past two decades, the average cost of a single-coverage premium has risen faster in New York than it has in the rest of the US. According to the Empire Center for Public Policy and the Agency for Healthcare Research & Quality, a key factor behind the rising premiums is a surge in claims, as an aging customer base in the state pursues more medical care and providers charge more for their services.
Utility costs in New York
The costs of utilities in New York are mixed: Some are cheaper than the national average, but others are more expensive in the Empire State.
One such utility is natural gas. In New York, the average cost of natural gas is $14.54 per thousand cubic feet. That’s about 12.5% higher than the national average rate ($12.92).
In a rare bright spot for New York’s overall cost of living, residents of the state spend less than many Americans on electricity. The average monthly electric bill in New York is $125.80 — about 8% cheaper than the national average ($136.84).
New York’s electricity bills may be relatively low, but it’s worth noting that electricity itself is actually more expensive in the state than the national average. In 2024, the average retail electricity price in New York was 19.7 cents per kilowatt hour. Nationally, the average price per kilowatt hour is 12.9 cents per kilowatt hour.
FAQ
Does New York have a high cost of living?
Yes, New York has a relatively high cost of living compared to the rest of the US. New York residents spend 13% more than the average American on essentials and lifestyle expenses each year. That ranks New York the No. 8 state for highest individual spending.
New York’s cost of living is especially high when it comes to housing costs. The state has the highest average rents in the country and the sixth highest median home prices.
Is New York a good place to live?
Yes, New York State is a good place to live if you value diverse communities, access to world-class amenities and a wide range of job opportunities. It ranks among the best states to raise a family, with especially strong public education and health care.
While the cost of living is high, the advantages make it worthwhile for many.
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Is New York good for renters?
New York can be a difficult state for renters. High costs and low availability contribute to a challenging rental market. The Empire State has some of the most expensive rents in the country, and one of the tightest rental markets.
However, New York ranks among the top states for strong tenant protections and overall quality of life. If you can secure a reasonably-priced unit — or if you’re able to afford the market rate — you may have a positive renting experience here.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Dec. 16, 2025.
- Redfin, “Redfin Data Center.” Accessed Dec. 16, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Dec. 16, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Dec. 16, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Dec. 16, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Dec. 16, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Dec. 16, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Dec. 16, 2025.
- Empire Center for Public Policy, “Why New York’s Health Premiums Keep Going Up.” Accessed Dec. 16, 2025.
- Berkeley Lab, Energy Technologies Area, “DEPTH Tool: Drivers of Electricity Pricing Trends & History.” Accessed Dec 16, 2025.
