How do poor people afford to live in nyc

On the flip side, the running cost would make a huge portion of your earnings plus you cannot consider it as an investment for future gains. The book suggests that if you have a net worth of over a million dollars. You are eligible to purchase a million-dollar home. However, you have to arrange a mortgage for your home loan. Therein, certain factors come into play that strengthens or weakens your pursuit such as down payment. The rule of thumb is if you pay a larger down payment. You will need a lower monthly income to afford a million-dollar home.

The higher you go the easier it is for you to seal the deal. In addition to it, the credit score carries equal importance in your equation. For the conventional scorers, the average credit score is above For big loans, you might need a better score. However, if you can balance your credit score with the down payment, some lenders might accept an average credit score. Sometimes, lenders ask you to show emergency reserves. They mean to make sure that you have enough liquid assets to pay the mortgage for 6 months.

It could be additional savings or another type of liquid investment. I also used to live in JC Heights for 3 years when I first moved to the area so that I could focus on being debt free and saving. COVID, family and preference are the main reasons for this migration pattern. It will certainly lower the cost of living in big cities and bring back more creative minded folks but I think it will also be less safe.

Also savings in pre-tax transportation to take advantage of. Came across this while researching for my book on the NYC housing market. Had to chuckle at the living in a 1 BR in Manhattan paying market rent. Only people dying to live in Manhattan, usually from out of town, would pay that.

If you have the money, there is plenty of cheap housing if you are willing to be resourceful and navigate the system. Perhaps market rent is not market rent then? Because the very definition of market rent is what the people pay. I work in midtown, live in the suburbs, and am currently looking at NYC apartments.

I definitely believe that a lot of foreigners, new-to-the-city young professionals, etc. I agree with you our newbies and foreigners jacking up rent and not knowing better. There are so many great deals in the city, but all people read about are the headlines of expensive rents.

I live in the Alexandria, Virginia Suburb of Washington, DC I am a single female with no kids and I live in an almost square foot studio apartment in a safe area. Right now my commute to work is bad 2 hours and the further out you go on our subway system the more you pay. I am trying to get a position closer to home so I can just pay for a bus pass.

My groceries are not too expensive. Be careful about buying a condo with an HOA, they can go up yearly like rent and fighting an HOA in court is an exercise in futility.

Living in Manhattan is a luxury. Do you need a car? Fuck no! Next is food, pretty much the same grocery bill in Florida. The union pays for great health insurance and pays into my pension meaning I could opt out of the k and retire just fine, or I could opt in and live like a king when I retire. Now the UA United Alliance is the national union. They too cover pension, but the pay out to retired workers is minuscule compared with local 1 in NYC.

Granted making Especially with the car costs added. Not to mention oil changes, tire rotations, new tires, just general car maintenance. Florida costs about 3k in expenses but I make about 3k a month. If I want to save I need overtime. Anything that is not related to my basic needs requires overtime. Now what I should have done is work in NYC local 1 for 10 years living very poorly and humble. Save every penny and put it in stocks, k, and savings. That would have given me Take it from a native, born and raised:.

What kind of native New Yorker is losing money on Broadway shows and ski trips? Do you feel you are getting ahead with your income?

What happens if you want to meet somebody or start a family? I guess most people here miss some of the most important points. Of course, one can save money by living with roommates, cooking and bringing lunch boxes to work, etc. BUT Everything depends on where you are in life and what kind of preferences you have. Not everyone wants to continue living like a college student. For example, as a couple you would want to live in the privacy of your own apartment.

Someone in their early 20s might be okay with living with roommates in a less developed area with lower rents, but what about a couple with kids? One very important thing most commenters seem to forget: people move to certain neighborhoods because they value the quality of life there not because the rent is low. Also things like commute to work play an essential role in picking the area to live. What we lack most is time. So I understand people who would rather spend more on rent if it saves them min of commuting — because it can make sense given the personal preference for time over money.

So stop generalizing and pushing your own style of living onto others. I grew up in a very frugal household outside the US continental Europe. This has influenced how I value and manage money. We have no car, rent a 1br apartment, dont pursue expensive hobbies and eat at home most of the time. Still, expenses rack up to k. Back where I am from we would probably be spending a third of that while maintaining a similar standard of living in a country as developed as the US. True, we are not just scraping by, being able to save 50k.

But alone the experience that living a fairly normal life costs around k proves to a certain degree then point the author is making. Also, cheap lunches for 5 bucks. Show me the places to get that around midtown east. Im a female 30 year old, Single. I live with my grandmother who owns a condo in fort greene. It is now worth K. I basically live here for free while looking for my own apt. Or Live in New Jersey because I refuse to pay to live with roommates again.

I work three jobs to meet the salary requirements. One of my jobs is in my field, broadcast media but is part time. I use a home phone instead of a cellphone. Im mostly vegetarian. I dont consume red meat or junk food like mcdonald. Im currently looking for the ideal full time day job with benefits in media or tech so i can get rid of my overnight job.

My part time broadcast media temp to perm job is a 1 year 3 month contract so its possibility this will turn into full time next year. These examples are a joke. Also the food budget is ridiculous. People are just entitled and think they deserve everything when they move to these large cities. Also laundry, and personal necessities. Btw — I was considering moving to NYC because of the medical field job im in, and the hospitals there are world-class.

But i could never make the salary it takes to live in NYC :'. I think there are alot of young people who are low to middle income 26Kk who are not aware of affordable housing lottery in nice buildings and neighborhoods.

Maybe they are picky and will only live in manhattan where people pay more for less sq ft. Some employers offer unlimited metro cards. I forgot to include my bicycle. I have one dutch bicycle from papillionaire.

I had it for years. I also bought faster one from public bike R Worth every penny. Then deeper Brooklyn as gentrification pushed us out of neighborhood after neighborhood.

I make 28k a year, and survive- somehow despite being constantly broke. I lived on my own and was making about 50k at this time. I had cable and a cell phone. I went on vacations cheap Caribbean or a cruise every year. I went out to happy hours and on the weekend. I never took cabs.

Only subway or walked as tended to go out in my neighborhood out of convenience. After 5 years I saved enough to buy a big alcove studio co-op that was renovated in a full service door man building on the west side. I lived in that apt for 5 years and then sold it to buy a house which I have been in for 4 years now. I made money on the apt and the house has increased in value k. Well, I live in East Tenn, and I make 95, a year. I feel really poor in Tennessee, so I could not imagine living there with what I make, and apparently that is good money because its the percent, which is more like 8 percent now.

I know I have been blessed, but I just wonder how people with nation average incomes like 59, live. Other tips- real NYers do not fear public school or college. We do not own cars if we live in Manhattan. Your fellow up there is a crazy high roller. And we had a great time. You think the progenitors of hip hop, punk, and new wave lived like that? Look deep and hard, and you will find a more rewarding and fascinating and cheaper city.

Native NYer here. Some things, unfortunately, are written in stone, like the insane taxes and cost of health insurance. First, upper Manhattan and the Bronx are actually quite nice, and much less expensive than the prices listed above, even two years later in ! You can rent a nice two bedroom in Harlem for a month a few blocks from Central Park, which is fairly reasonable if you have a roommate.

Washington Heights is even cheaper! Many of these apartments are no fee, too, and rent stabilized. Also, please, bring your lunch to work like a real NYer, or grab a slice or a dirty water dog for just a few dollars.

Check out happy hours, early bird specials, and explore new neighborhoods. Last month I went to three free talks at different bookstores and one at the Tenement Museum.

Get an NY card and enjoy all the free and discounted museums and cultural attractions the city has to offer. Walk everywhere and take pictures. Enjoy a free day people-watching in Central Park or watching the chess players in Washington Square Park. Take the train to Flushing and check out the its exciting colonial history and its interesting immigrant present.

Join Citibike or buy a used bike on Craigslist and ride it everywhere. You can even cancel the gym membership! Even now I consider a cab to the airport a daring treat! Make a monthly trip to Chinatown or Flushing to buy cheap groceries at an Asian market. Buy your fruit from a peddler, not from the store. Mostly great advice, accept if you eat cheap pizza and dirty water dogs for lunch everyday your going to need to factor in some serious health factors! I am 26 years old in NYC making 20, a year.

My roommate plays Jazz music and we dance a lot. Sometimes the neighbors come by and we drink beers on the roof. Eventually, it boils down to managing your expenses. I see a lot of expenses in the budget example that can be trimmed down and instead diverted to savings. Frugality in general will always payoff in bigger networth and greater happiness in the long term.

As one raised entirely outside Manhattan — in the outer boroughs — I question the frugality of your friend for living on the Upper East Side. I currently live in Weehawken, just on the other side of the tunnel in NJ. Not giving it up anytime soon having a smaller space also helps to accumulate less junk.

Allows me to put more money towards savings and experiences ticket prices are expensive and competitive. But time is money. Most of the places I meet up with friends take an hour to get to almost always going to their place or meeting in between, never coming to my side.

I have called nights early, when my friends want to stay out, because I have to factor in the commute 24 hour buses, but you never know when there will be traffic in the tunnel.

Plus dating is more difficult. People seem interested, then ask where I live. I have talked to female friends, and they mention the disadvantage of not being in the city at least for a couple years.

But you know, lifestyle inflation and all that. The bottom line is this… If you want to live a decent quality of like in Manhattan you need to make well over k if you are single.

I would say at least k. I am talking to buy a 1 bedroom in the city as opposed to splitting rental costs and all that non-sense.

You have to compare it to what you would get in another city. Also, you need to factor in the monthly maintenance fees and property taxes that are huge. The average 1 bedroom in the city now is k — 1M. Even if you made k you can not afford to buy even a 1 bedroom in Manhattan. Now imagine if you have a wife and a kid. The amount you must make skyrockets from there. Now you need at the very least a 2 bedroom and preferable a 3 bedroom. Oh yeah that is 3 million dollars at a low price point.

That means you would need 1M for a down payment. Then you ad in the taxes are probably 60k a year and monthly maintenance fees are 3, So for a family of 3 not including anything else you would need to take home 15, a month after taxes just to afford your housing.

This means you would have to make at least , a year minimum just cover that let alone other bills. In all honesty, as a family you need to make k to live pretty average. This is the most expensive city in the history of the world!

I like the breakdown of this post, however I disagree. Do I wish I make more? First of all, your rent estimates are above what you could quality for by the 40x rule.

You see how this, in and of itself provides a large cushion you did not have. I believe the taxi budget can also be significantly reduced with low priced ubers, especially if you have an unlimited metro card. Here is my breakdown. Good job. Did you even read the article? Profiteering landlords and destabilized rents make it nearly impossible for anyone making less than 6 figures to even move here. The infrastructure of Manhattan cannot support the unfettered growth of the population.

City planning in NYC goes to the highest bidder. The sanitation department, bridges, roadways, transit department and so on see not designed to support the giant influx of new residential and office buildings. There is no longer any such thing as middle class living in NYC. Every wealthy property owner — I mean BIG property owner, makes their money off the backs of renters and taxpayers slaving away to keep up.

There is a reason for rent regulation and affordable housing. How can NYC expect to educate its population, pay teachers, police officers, firefighters and sanitation workers a living wage if the landlords basically run NYC politics? Do your home work.

City planning is based on who has the most money. It is not based on keeping the infrastructure up to date and building only where there is a good infrastructure already in place. Zoning variations happen all the time. NYC now caters to the wealthy and powerful. There is no such thing as a middle class Population here, and the the government does not care at all. Come visit our overpopulated city with over inflated prices for every thing from a quart of milk to a roll of toilet paper. The reason?

Out of control rents. A shopkeeper cannot afford the rent. The landlord asked for an exorbitant increase. The shop has to close. The landlord gets tax breaks on it vacant property as infinitum. Why is it necessary or prudent to build so many more buildings? There is trash all over the place here, broken water pipes, aging subway system, etc.

There is just so much room for prudent land development here. The real estate development community is very heavily favored here. It is NOT in the best interest of quality if life for anyone but the very wealthy. Why should a postal worker who delivers mail in NYC take a 2 hour commute here?

What if the sanitation workers decided to work in a smaller municipality do they could afford to take their kids in vacation? I have lived here 40 years. In that time my real spending capability has significantly decreased. Checked interest rates at the bank recently? The author of this article was obviously born in a different era and location than the majority of born and bred New Yorkers.

I you were to go back to where you came from, this residential and commercial rent problem we face would disappear. Its all because of the Bloomberg administration.

Brooklyn is kinda nice comparing to crowded Manhattan. Consider Seattle maybe a better option for city life and beach views with much less cost comparing to NYC.

My wife and I recently moved out of NYC to a more relaxed and family friendly state. Look at what they have to put up to make it work:. Ninja please! How is living in a cramped space, never going out and not having any left over income equal good quality of life? I have done it and you learn to accept this as the norm until you move out and see how people on normal salaries love and you realize that the price you pay for living in NYC is not worth the prize that you think NYC living is.

The major flaw with the first budget is the rent. After living in Brooklyn for 4 years I can say that most young Manhattanites have the backwards perception that they MUST be within walking distance of everything in their life. They pay more to be closer to more places they can spend their money. I wish I bought everything I could in Brooklyn 10 years ago! You are right. Just be willing to commute a little bit longer and you can save so much money.

My wife has a govt pension which she is fully vested into though I am not sure how much it will pay at retirement. Unfortunately however outside of these pensions, we both started late but am back on track. Sounds good right? Student loans, credit cards, car loans, etc, all paid off. Are we OK? Should we be putting more away for retirement due to starting late or will the pensions support that?

This is coming from someone a few years younger than you, so take it a you wish. You seriously should and could be saving much more. Well that was an interesting read. Certainly eye-opening. I make 70K 4K monthly take-home. I have a 2 story 1, sq. I know I could probably cut some corners here and there to save a few bucks.

Very cool. Where do you live? As this article is talking about folks living in expensive cities. Thank you for this great post, it is a bit depressing and some of the suggestions to be able to live in expensive cities are also highly unrealistic.

I am over 40, female, educated with a Masters degree but have no K or any savings whatsoever. I dont know what you have a masters in but whatever it is its marketable in NYC. You could easly get a managers position. Starting a business might be an option as well. Personally i didnt graduate from High Shcool but im making a hair under 75k.

I worked my way up from the bottom in a warehouse to manager. A Masters to me is a shortcut. See my blog where I list my networth, budget and ways I save money. I live in Seattle, the fastest growing city in the US right now. Rents are skyrocketing. It is a concern to me how I am going to stay in this city which is my home.

All my family and friends and kid live here. I am an avid international traveler, but Seattle is my home base. I am an artist and performer.

Here are my solutions to living here in this beautiful city:. This is an intentional community and my rent is reasonable. Seattle is a phenomenal happy hour town. I go to 5 or 6 different stores according to what carries the most economical goods.

I have a pantry. But looking forward…a new chapter is looming. Low income housing. Due to long waiting lists, priority is given to individuals and families applying from shelters. The criteria to live in these apartments varies based on the government agency funding them. Find out qualifications for Supportive Housing. HUD is housing assistance provided by the federal government. They have programs for rent assistance, home owners and homeless prevention. I was across the street from the site of the East Village explosion when it happened and saw 3 full apartment buildings burn to the ground within an hour.

My bf has had his apartment broken into and burglarized twice. Heat and hot water are generally included in the price of NYC rent so that leaves gas and electric. Again, having a roommate or two can be tremendously helpful in cutting down this cost.

Again, splitting the cost with a roomie and only worrying about internet rather than a full premium cable package keeps this expense low without much sacrifice. Thank goodness for Netflix.