The True Cost of Living in NYC: What’s Needed to Survive in 2022


empire state building new york

Given the ever-increasing cost of living in the United States, low-wage working families and individuals are continually unable to meet and maintain the bare necessities of life.

This is especially true in New York City, where a working adult with 2 kids needs to make $53 an hour just to get by and afford basic items needed to support his or her family.

That’s why the minimum wage — which sits at just $15 an hour in NYC — needs to not only go up, but make financial, social, and geographic sense. One that factors in a host of everyday expenses and ultimately increases an individual’s chances of enduring potential hardships.

Enter the living wage — the hourly rate needed to afford and maintain a self-sufficient family. A location-based rate that factors in a host of everyday expenses — including child care, health insurance, transportation, personal care items, etc. — to determine what’s actually needed to survive in a specific community. In our case, that community is New York City.

To learn more, use the information below to explore the true cost of living in New York City boroughs and see why a living wage is so important in today’s work environment. Explore typical salaries and expenses in NYC and pair these findings with other interactive demographic tools to explore the issue further.

Cost of Living in NYC: 1 Working Adult

Type of Wage 1 Adult and 0 Children 1 Adult and 1 Child 1 Adult and 2 Children 1 Adult and 3 Children
Living Wage $25.42 $43.18 $53.00 $69.90
Poverty Wage $6.19 $8.38 $10.56 $12.74
Minimum Wage $15.00 $15.00 $15.00 $15.00
Source: Glasmeier, Amy K. Living Wage Calculator. 2020. Massachusetts Institute of Technology. livingwage.mit.edu.

Cost of Living in NYC: 2 Adults (Only 1 Working)

Type of Wage 2 Adults and only 1 Working with 0 Children 2 Adults and only 1 Working with 1 Child 2 Adults and only 1 Working with 2 Children 2 Adults and only 1 Working with 3 Children
Living Wage $34.09 $40.11 $46.06 $51.07
Poverty Wage $8.38 $10.56 $12.74 $14.92
Minimum Wage $15.00 $15.00 $15.00 $15.00
Source: Glasmeier, Amy K. Living Wage Calculator. 2020. Massachusetts Institute of Technology. livingwage.mit.edu.

Cost of Living in NYC: 2 Adults (Both Working)

Type of Wage 2 Adults and Both Working with 0 Children 2 Adults and Both Working with 1 Child 2 Adults and Both Working with 2 Children 2 Adults and Both Working with 3 Children
Living Wage $17.04 $23.32 $29.56 $35.32
Poverty Wage $4.19 $5.28 $6.37 $7.46
Minimum Wage $15.00 $15.00 $15.00 $15.00
Source: Glasmeier, Amy K. Living Wage Calculator. 2020. Massachusetts Institute of Technology. livingwage.mit.edu.

Typical Expenses: 1 Adult in NYC

Type of Expense 1 Adult and 0 Children 1 Adult and 1 Child 1 Adult and 2 Children 1 Adult and 3 Children
Food $3,891 $5,734 $8,613 $11,425
Child Care $0 $10,822 $21,644 $32,466
Medical $2,741 $7,718 $7,505 $7,815
Housing $22,852 $26,656 $26,656 $33,732
Transportation $4,244 $7,531 $9,791 $11,565
Civic $3,207 $5,149 $6,361 $8,307
Other $5,275 $7,867 $7,197 $10,471
Required annual income after taxes $42,333 $71,600 $87,891 $115,904
Annual taxes $10,530 $18,214 $22,359 $29,485
Required annual income before taxes $52,863 $89,815 $110,249 $145,388
Source: Glasmeier, Amy K. Living Wage Calculator. 2020. Massachusetts Institute of Technology. livingwage.mit.edu.

Typical Expenses: 2 Adults with only 1 Working

Type of Expense 2 Adults, Only 1 Working, and 0 Children 2 Adults, Only 1 Working, and 1 Child 2 Adults, Only 1 Working, and 2 Children 2 Adults, Only 1 Working, and 3 Children
Food $7,133 $8,878 $11,446 $13,934
Child Care $0 $0 $0 $0
Medical $5,591 $7,505 $7,815 $7,604
Housing $23,384 $26,656 $26,656 $33,732
Transportation $7,531 $9,791 $11,565 $12,560
Civic $5,149 $6,361 $8,307 $6,603
Other $7,867 $7,197 $10,471 $10,128
Required annual income after taxes $56,779 $66,511 $76,382 $84,684
Annual taxes $14,124 $16,920 $19,431 $21,543
Required annual income before taxes $70,903 $83,431 $95,813 $106,227
Source: Glasmeier, Amy K. Living Wage Calculator. 2020. Massachusetts Institute of Technology. livingwage.mit.edu.

Typical Expenses: Two Adults Both Working

Type of Expense 2 Adults, Both Working, and 0 Children 2 Adults, Both Working, and 1 Child 2 Adults, Both Working, and 2 Children 2 Adults, Both Working, and 3 Children
Food $7,133 $8,878 $11,446 $13,934
Child Care $0 $10,822 $21,644 $32,466
Medical $5,591 $7,505 $7,815 $7,604
Housing $23,384 $26,656 $26,656 $33,732
Transportation $7,531 $9,791 $11,565 $12,560
Civic $5,149 $6,361 $8,307 $6,603
Other $7,867 $7,197 $10,471 $10,128
Required annual income after taxes $56,779 $77,333 $98,026 $117,150
Annual taxes $14,124 $19,673 $24,937 $29,802
Required annual income before taxes $70,903 $97,006 $122,963 $146,952
Source: Glasmeier, Amy K. Living Wage Calculator. 2020. Massachusetts Institute of Technology. livingwage.mit.edu.

Typical Annual Salaries for all Five NYC Boroughs

Occupational Area Typical Annual Salary
Management $155,118
Business & Financial Operations $90,383
Computer & Mathematical $102,164
Architecture & Engineering $88,703
Life, Physical, & Social Science $74,911
Community & Social Service $55,266
Legal $120,375
Education, Training, & Library $69,903
Arts, Design, Entertainment, Sports, & Media $75,638
Healthcare Practitioners & Technical $87,751
Healthcare Support $34,604
Protective Service $54,912
Food Preparation & Serving Related $32,817
Building & Grounds Cleaning & Maintenance $37,600
Personal Care & Service $34,368
Sales & Related $39,954
Office & Administrative Support $47,208
Farming, Fishing, & Forestry $35,952
Construction & Extraction $63,365
Installation, Maintenance, & Repair $56,582
Production $40,767
Transportation & Material Moving $39,975
Source: Glasmeier, Amy K. Living Wage Calculator. 2020. Massachusetts Institute of Technology. livingwage.mit.edu.

In New York City, typical annual salaries range from $32,817 — if working in the Food Preparation & Serving Related industry — to $155,118 — if working in management.

Comparing Salaries: New York State vs NYC Metro

Occupational Area Typical Annual Salary: New York-Newark-Jersey City, NY Metro Typical Annual Salary: New York State
Management $167,220 $155,118
Business & Financial Operations $96,022 $90,383
Computer & Mathematical $110,510 $102,164
Architecture & Engineering $95,786 $88,703
Life, Physical, & Social Science $84,081 $74,911
Community & Social Service $57,620 $55,266
Legal $129,962 $120,375
Education, Training, & Library $71,883 $69,903
Arts, Design, Entertainment, Sports, & Media $78,656 $75,638
Healthcare Practitioners & Technical $94,963 $87,751
Healthcare Support $34,914 $34,604
Protective Service $52,698 $54,912
Food Preparation & Serving Related $32,710 $32,817
Building & Grounds Cleaning & Maintenance $38,820 $37,600
Personal Care & Service $34,529 $34,368
Sales & Related $42,757 $39,954
Office & Administrative Support $48,706 $47,208
Farming, Fishing, & Forestry $33,983 $35,952
Construction & Extraction $67,357 $63,365
Installation, Maintenance, & Repair $61,151 $56,582
Production $39,644 $40,767
Transportation & Material Moving $39,537 $39,975
Source: Glasmeier, Amy K. Living Wage Calculator. 2020. Massachusetts Institute of Technology. livingwage.mit.edu.

Comparing Salaries: New York Metro Areas

Occupational Area Typical Annual Salary: Buffalo-Cheektowaga-Niagara Falls, NY (Metro) Typical Annual Salary: New York-Newark-Jersey City, NY (Metro) Typical Annual Salary: Rochester
Management $116,191 $167,220 $121,220
Business & Financial Operations $72,182 $96,022 $73,370
Computer & Mathematical $80,988 $110,510 $82,454
Architecture & Engineering $81,352 $95,786 $85,076
Life, Physical, & Social Science $63,697 $84,081 $65,666
Community & Social Service $49,402 $57,620 $50,151
Legal $68,598 $129,962 $85,868
Education, Training, & Library $58,122 $71,883 $60,680
Arts, Design, Entertainment, Sports, & Media $50,440 $78,656 $51,606
Healthcare Practitioners & Technical $75,028 $94,963 $68,095
Healthcare Support $32,475 $34,914 $32,228
Protective Service $55,672 $52,698 $58,850
Food Preparation & Serving Related $29,778 $32,710 $29,874
Building & Grounds Cleaning & Maintenance $31,929 $38,820 $31,586
Personal Care & Service $30,442 $34,529 $30,923
Sales & Related $32,721 $42,757 $32,507
Office & Administrative Support $42,286 $48,706 $41,612
Farming, Fishing, & Forestry $38,017 $33,983 $33,084
Construction & Extraction $57,962 $67,357 $55,062
Installation, Maintenance, & Repair $51,093 $61,151 $50,033
Production $43,378 $39,644 $40,403
Transportation & Material Moving $34,700 $39,537 $34,936
Source: Glasmeier, Amy K. Living Wage Calculator. 2020. Massachusetts Institute of Technology. livingwage.mit.edu.

The True Cost of Living in NYC

While the minimum wage in NYC is just $15 an hour, the true cost of living in New York City is far greater. If you’re a single parent with three kids, you need to make $69.90 just to afford the very basic necessities needed to get by — a whopping $54.90 difference in hourly wages. If there are two 2 adults working, both would still need to make $35.32 to survive with three kids in New York City — a $20.32 difference.

An alternate method of calculating basic needs in NYC — instead of the minimum wage — is the living wage model. A family’s expected minimal costs for food, child care, health insurance, housing, transportation, and other basic necessities (such as clothing, personal care products, etc.) that are market-based and person-specific.

For New York City, where the cost of living is an ever-increasing guarantee, a living wage would successfully capture the “actual” minimum employment earnings required to cover a family’s basic necessities to achieve self-sufficiency.

Explore the MIT Living Wage Calculator

If you’re interested in learning more about “living wages” and what exactly they entail, explore the Living Wage Calculator out of MIT.

Created by Dr. Amy K. Glasmeier, the MIT Living Wage Calculator allows you pick any location in the U.S. (county level only) and calculate/compare living wages, typical expenses, and typical annual salaries.

The post The True Cost of Living in NYC: What’s Needed to Survive in 2022 appeared first on Millennial Cities.



Source: Millennial Cities RSS Feed
Link: The True Cost of Living in NYC: What’s Needed to Survive in 2022

Tags: