The cost of living in the United States ranks as the 26th highest in the world. However, there are significant variations in the cost of everyday expenses across different states, particularly in larger metropolitan areas.
Housing costs constitute the largest portion of the cost of living, and areas with fierce competition for housing tend to be the most expensive. Other factors that impact the cost of living include transportation expenses and local taxes. To get a better understanding of the cost of living in New York, it is helpful to first look at the average expenses across the nation.
On average, American households spend about $61,334 annually to cover their expenses, with nearly 35% of this amount going towards housing. Renting a two-bedroom apartment in the United States costs an average of $1,164 per month.
Since New York is ranked as the second costliest state in the US, with a cost of living index of 148.2, housing expenses in New York are notably high, reaching 2.3 times the national average. Unfortunately, only a quarter of residents can afford a new home based on their income, which contributes to the state's low rate of homeownership, the lowest in the United States.
The government has made several efforts to decrease living expenses in the state, including imposing rent controls, but these measures have not had any significant impact on reducing housing costs in recent times.
A recent study by GoBankingRates showed that workers on the state's median hourly wage of $21.63 need to work an average of 76.16 hours each week simply to live comfortably. The study was based on data from the state's median household income of $62,765, median hourly wage of $21.63, and average annual cost of living of $42,828.30.
According to GoBankingRates, an annual salary of $85,656.60 is necessary to live comfortably in the state, assuming half is spent on essential expenses, 30% on nonessential items, and 20% is saved.
However, despite these high costs, there are many affordable towns throughout New York that young professionals can consider. Those who venture upstate or west to Central or Western New York can enjoy significantly lower rent prices.
To finalize the 16 top locations to reside in New York for young people, numerous factors were analyzed. These criteria encompassed various aspects such as home value, medical facilities, education, household income, rent, average commutes, and average grocery costs.
Furthermore, elements like crime rates, culture, and climate were also evaluated. A composite score out of 10 was given to each place based on these seven criteria, with the highest potential score being 70.
A consensus opinion-based ranking was utilized, to develop the score for each location. We relied on various sources like The Business Journal, Niche, U.S. News, Business Insider, and the United States Census Bureau to gather relevant information.
After analyzing the results, the 16 areas were listed in ascending order based on their total score.
16. Poughkeepsie
Total Score: 18
Poughkeepsie is situated in the Hudson River Valley and has a population of around 32,558, making it one of the largest city in New York, with an average household income of $63,046. Poughkeepsie boasts a thriving arts scene, with attractions such as the Bardaven 1869 Opera House, museums, and Vassar College. Additionally, the largest plant of IBM (NYSE:IBM) is also situated in Poughkeepsie.
15. Middletown
Total Score: 25
Middletown, located in the Hudson Valley north of New York City, has a population of about 30,624 individuals, with an average household income of $73,103. The town experienced growth throughout the 19th and 20th centuries due to the construction of railroads, which brought small manufacturing businesses to the area. The Orange Regional Medical Center provides high-quality healthcare services.
14. Saratoga Springs
Total Score: 29
Saratoga Springs, situated near the state capital Albany in New York, is the home of Skidmore College. The only disadvantage of living in Saratoga Springs is the swell in tourism during the summertime.
13. New Rochelle
Total Score: 31
New Rochelle, situated in the southeastern part of New York State's Westchester County, is a purposefully constructed community that appeals to young adults and the elderly alike.
Despite the recent population growth, the city still boasts numerous inexpensive residential options. The 9.3-acre waterfront is a prominent feature of New Rochelle, offering yacht, sailing, and rowing activities, as well as parks and a golf course.
12. Montauk, Long Island
Total Score: 35
Montauk is not only a stunning location, but it also boasts a vibrant local community and numerous facilities, making it one of the best places in New York for young adults. Montauk has a population of approximately 4,272 people, with an average household income of $121,515.
11. Lake Placid
Total Score: 38
Lake Placid boasts a range of cultural offerings, such as the Lake Placid Olympic Museum, the Lake Placid Center for the Arts, and the Adirondack Carousel. It has a population of around 2,225, making it one of the largest cities in New York, with an average household income of $63,955.
10. Kingston
Total Score: 40
Numerous aspiring entrepreneurs have migrated to Kingston and are establishing eateries, shops, workspaces, and other micro-economic enterprises in the region.
Kingston's remarkable history, scenic views, and reasonable living expenses play a significant role in this attraction. It has a population of around 24,307, making it the 39th largest city in New York, with an average household income of $67,276.
9. Niagra Falls
Total Score: 42
Niagara Falls offers a range of appealing fields for job seekers, such as healthcare, tourism, lake house market, and manufacturing. It has a population of around 47,899, making it the 14th largest city in New York, with an average household income of $53,105.
8. Utica
Total Score: 44
Utica boasts several highly-rated medical facilities, such as St. Elizabeth Medical Center and Faxton St. Luke’s Healthcare, which offer exceptional healthcare services to its residents. The region has a diverse and expanding economy, with significant employers like Mohawk Valley Health System and SUNY - State University of New York Institute of Technology.
Access to larger cities like Syracuse, Albany, and Rochester is convenient due to its close proximity, offering additional amenities and attractions. These features make Utica an appealing location for individuals seeking to purchase a home and establish themselves.
As of 2023, its population stands at 63,316, making it the eleventh biggest city in New York, with an average household income of $55,700.
7. Hudson
Total Score: 46
Hudson's close proximity to New York City, has made it a highly desirable location for those seeking an urban lifestyle without living in the city. Despite its small size, Hudson has become a hub for businesses due to its affordable rental rates and a strong pool of skilled workers.
As the county seat of Columbia County, Hudson has a population of 5,916 as of 2023 and an average household income of $56,787.
6. Binghamton
Total Score: 48
Binghamton has been ranked the fifth best place to reside in the Northeast post-COVID-19 by Business Insider. The article highlights that Binghamton has an average housing cost of $802 per month, which is the fifth lowest across all metro areas in the Northeast.
Additionally, the city has the 10th highest total spending per student in public schools for both primary and secondary levels, with the highest spending school district in the area allocating $20,358 per student. Binghamton has a population of 46,954 as of 2023.
