This is a complicated question, I used to be a NYC rental broker so can answer this question as it relates to real estate.
- There is still a lot of rent stabilized and some rent controlled apartments. These apartments are significantly lower than market rate. There are people paying $2000 and under for 1 and 2 BR apts. those people NEVER LEAVE. They do the best they can with the finishes and condition of the apt, sometimes negotiating with the landlord for some basic upgrades but they NEVER LEAVE. They even treat their stabilized or controlled status as a sort of asset that can be passed down to other relatives who are occupants to the apt. So if you’re paying very low rent, this can definitely help you with cost of living.
- Roommates- Roommate culture is huge in NYC. Many people survive with roommates cutting the rent in half or more depending on how many roommates. There is such a thing as “Flexing” an apartment so to make an extra room out of the living room. A 600sqft 1BR can potentally be “Flexed” into a 600sqft 2BR with no living room A cheap 2300 1BR split between 2 is only $1150 a month each. To qualify for that portion of the rent you only need to make $46K which is really a starting salary for young professionals in NYC.
- Higher Salaries-NYC salaries are huge compared to other parts of the country. And that’s mainly because they account for the higher cost of living. You can be starting at $55K and still struggling if your looking to live in prime NYC neighborhoods. People working on Wall Street with big five figure bonuses are really just making upper middle class. Especially families that choose to stay in the city. Include the cost of childcare and you can easily be living hand to mouth.
- Rich Kids from other parts of the country: They say NYC is the playground for the rich. For some reason all the young rich kids like to live in this city. They have parents who are able to co-sign on their apartments. Mind you, a requirement for a consigning on a apt that costs $2500 is $200K in income. The cost upfront for an apartment can easily exceed 10K. I’ve seen parents give their kids 3K monthly stipends! If only their parents could adopt me!
There’s a variety of factors that make it possible for people to afford city living. I would consider prime (south of 96th st) NYC to be difficult for most people to afford. The cost of living for basic things like groceries and dry cleaning tend to be higher in these neighborhoods.
Good thing there are other reasonable nearby neighborhoods in Brooklyn, Queens, Upper Manhattan, and New Jersey where you can still find reasonable rent but with a short commute.
