Whether you are moving to New York or going there on vacation, New York is expensive.
Most people will agree that the prices you pay for food, services, products, and land in New York are extremely high.
The high pricing is something that many people find worth it, but the quality of life you can get in New York certainly requires a good amount of money.
It requires a high salary and excellent money management to make New York your home.
If you have ever wondered what makes New York so expensive, we have some answers that may help you.
Why Is New York So Expensive? (Top 10 Reasons)
1. Income Taxes
As Americans, we are used to paying federal income taxes.
This is something that everyone has to pay regardless of their income level, and it will help to fund federal programs for the rest of the year.
However, in addition to the federal income taxes, each state has its own tax rate.
This is going to be charged in addition to the taxes that you are paying to the federal government.
Some states have no income tax, like Florida.
Other states have very low or moderate rates.
However, New York has very high rates of income tax.
The rates are high even on the lower end of the income bracket.
By the time people pay for their federal and state income taxes, they are going to be left with a very high portion of their income leaving their pocket.
Now there are some good things about higher income taxes.
If your income taxes are higher in your state, chances are the state parks and schools are also a bit better than they are in other states.
In New York, the schools are quite good in most areas, and this very likely has to do with the income that is being reinvested into the state from the state income taxes.
When you are moving to New York from another state, you must make sure that you are prepared for these extra costs and they don’t leave you surprised.
New York is expensive because it is convenient.
You can pretty much do or see anything in the state of New York, especially when you are in New York City.
New York City is known around the world as being one of the busiest and most active cities.
People who live in New York City don’t need to leave a three-block radius in order to have everything they need to live.
There are jobs, food, entertainment, and more on every New York city block.
This type of convenience is something that you will, unfortunately, have to pay for.
As a resident, you won’t need to have a car, and this will probably save you some money.
You can have access to any type of cuisine in a matter of seconds in New York.
Essentially, the convenience is so valuable to people that it makes New York much more expensive.
In addition to the convenience when you are in the state, it is also very easy to travel out of New York.
If you want to fly almost anywhere in the world, you can do so from the New York airports.
For those who have to travel quite a bit for work, they are going to enjoy the convenience of living in the New York City area.
3. High Salary
Some of the richest people in the world live in New York City.
Small apartments can sell for tens of millions of dollars.
Many of these people have earned their income because they built their businesses in the New York area.
New York has a very fast-paced business environment.
If you want to know if your business concept or idea is going to make it, the people in New York will let you know.
If you take a job in the New York area, your salary is likely going to be quite a bit higher than it will be in other states.
This is related to the high cost of living and the fact that these companies in New York are also very powerful and successful.
They are able to produce large amounts of income because of their success, and therefore, they can hire the best people.
Although you will have a higher salary in New York, be prepared to work for it.
The work-life balance can be difficult to maintain in New York.
Since you must work so hard to be able to earn the necessary income to survive, you will find that you may have to work quite a few hours.
These high salaries are certainly appealing, but as we mentioned, you must check the tax rates as well.
Remember that the opportunity to make more money is almost always going to cost extra money.
4. World-Class City
New York is a world-class city, and it is well known throughout the entire world.
This makes it much more expensive and likely will cost you quite a bit of money long term if you decide to move there.
New York City also seems to have a pulse on the rest of the world.
Many of the latest fashion or business trends originate in the New York City area and then spread worldwide.
If you want to live or visit a place that is less expensive, sometimes it has to be something that people don’t know much about.
The most popular and well-known places throughout the world are almost always going to be more expensive to be a part of.
You will have to decide if it makes sense to you to invest this type of money to live where everyone wants to live.
5. An Island with Very Little Space
The state of New York is quite large, and in fact, there are some areas that are quite reasonable in price.
The highest prices in the state are the ones that give you easy access to the city.
Manhattan, Long Island, and Westchester are the three big areas when it comes to the overall high expenses in New York.
This is, of course, because of the access that these areas have to the heart of the city.
The location of New York City is actually on the island of Manhattan.
When you see the size of this island on a map, you will quickly learn how limited space actually is.
This is a major reason that New York is so expensive.
Only so many people can even fit in the downtown area of the city.
When people couldn’t all have access to live in the city, the areas around Manhattan started to grow in both popularity and price.
The more people those areas accommodate, the more expensive they became.
People who live around the city of New York have no problem commuting an hour or more to get to their job in the city.
This is simply a way of life in New York, and anything different makes people wonder how it is even possible.
Unless New York is able to somehow expand, the pricing is likely always going to stay elevated.
Limited space means that it is in a prime real estate market, and it is often traded and sold at very high numbers before it even gets listed for sale.
6. Gold Coast
One of those areas we talked about that borders the New York City area is Long Island.
Long Island has a gold coast area that is well known for being home to the wealthiest people in the country.
If you look back in history to the time of the Vanderbilts and the Roosevelts, they all had estates on the gold coast of Long Island.
There is a tremendous amount of history in this area, and people are often shocked by how much actually went on in the Long Island area.
Another thing that people don’t realize about Long Island is that it can be incredibly beautiful.
It offers a much different style of life than Manhattan, yet you can commute to Manhattan and make money.
Long Island has always been known as being very expensive.
People pay a lot of money to live in these same beautiful areas that the business tycoons of years past wanted to live in.
You will have access to the city but also to the Long Island Sound and just a short trip to the ocean.
Overall, the number of things you can do and the overall beauty of the entire area add to the pricing.
7. Types of Activities
In New York, you can ski, and then you can drive a few hours and go out on a boat.
There are things to do in the state of New York all year long.
The golf courses and public parks in the state are some of the best around.
When it comes to museums, history, restaurants, and culture, most will agree that nothing beats New York.
You don’t have to just be in the city to experience all that New York has to offer.
Even in smaller areas like Buffalo and Rochester, there are lots of things to do and plenty to enjoy.
Whatever it is that interests you, you should be able to find it in the state of New York.
8. Four Seasons
New York has four full seasons.
In the winter, you can experience snow regardless of where in the state you live.
If you live in the northern areas near Canada, you will get quite a bit of accumulation of snow every year.
However, even in the southern part of the state, you can expect a few blizzards at least every few years.
In the fall, you get the full range of leaves changing, and many people will head to the northern parts of the state to watch the leaf change work its way down.
It’s a beautiful time of year and mild enough to spend most of your days outside with a sweater or jacket on.
If you back up a bit further into the summer months, New York has some of the best summer weather in the country.
The temperatures are warm during the day and allow for lots of swimming, boating, and fun on the many beaches.
When the night comes, the temperature tends to cool down a few degrees, making the nights a bit more bearable.
Certainly, it’s nothing like a summer in Florida or anywhere in the southern United States.
Lastly, the spring is a time of growth, flowers, and beautiful scenery in the New York area.
Some people like having these four full seasons and the benefits that they can all bring.
Since this is quite appealing with the wide range of activities and benefits New York allows, you will have to pay quite a bit more for it.
In fact, even if you try to visit New York in the wintertime, you will have to pay quite a bit of money for your trip.
There is just too much to do all year long for the prices to drop down.
9. Rat Race
Many people who live in New York will describe it as a rat race.
This is a way to talk about the fast pace of life and all that is involved with the New York way of life.
People will work twelve- to fourteen-hour days just to be able to afford to live there.
Transactions happen fast in New York, and you learn to be a quick thinker and to move through your tasks at great speed.
Those who didn’t grow up in New York and don’t understand the way of life are going to have a hard time figuring out why people do what they do.
You have to be there and see how it is and what it’s like to fully understand how and why New York is what it is.
The competitive spirit of those in the state certainly will lead to higher expenses for living there.
In New York, there is always someone working harder than you are at any given moment.
10. Property Taxes
Last but not least are the property taxes.
New York’s property taxes are some of the highest in the nation.
If you think you can afford a home in New York, you’d better first take a look at what the property taxes will be.
The taxes are sometimes such a large percentage of the home that they can be just as much as your mortgage payment.
New York’s property taxes almost never go down, and they seem to go up every year.
The amount one must pay for these taxes is going to make things difficult for those who want to buy.
Of course, the problem with this is that the rent prices are also incredibly high.
Therefore, that alternative for trying to afford that large house in New York is just as expensive as owning.
There are some areas of New York that have controlled rent, and that certainly helps those with the lower income.
The less money you make, the harder it is to make it and enjoy life in New York.
When you hear about people in New York moving to Florida, a lot of this has to do with being tired of the constant business and push for more and more money.
New York can be a great place to be, but at times, it makes sense to take a break and experience a different type of life.
Hopefully, these reasons have cleared up why New York is so expensive.
It is not that you will choose an expensive life in New York, but it is that there is no other alternative.
If you want to take advantage of all the state has to offer, you are going to have to pay quite a bit for the luxury.
Those who first move to New York will typically rent to make sure they can really afford the lifestyle before they make a purchase.
The high prices all around will let you know rather quickly if you can afford to stay or not.
If you want to visit New York on a budget, try staying just outside the city and commuting in, and you can save quite a bit of money.
Don’t forget that there are many areas aside from New York City in the state of New York that would be worth visiting.