Cost of Living as an Expat in New York

Let’s face it: relocation is a big deal, both as a single person and as a family person. You can’t avoid feeling that pang because you are leaving the known for the relatively unknown. Even if you have spent some time in the area you are considering relocating to, in this case, New York, it is not the same as having to live there.

New York is reputed to be the second most expensive city to live in the United States and North America, majorly due to housing costs. The United States Bureau of Labour Statistics found that New Yorkers spend about 38% of their overall budget on housing (2018 - 2019 numbers) compared to the national average, at 32.7%. However, New York is a fantastic city with many incredible offerings for just about anyone. With proper planning and budgeting, you can enjoy it all: fashion, education, sports, arts, entertainment, or technology.

This article looks at the cost of living as an expat in New York, specifically Manhattan and Brooklyn, both as a single person and a family person. These costs will include:

●      Renting,

●      Schooling,

●      Housekeeping,

●      Babysitting and other costs

We will also examine how a relocation agency can help you make your move as seamless as possible. Ready? Let's dive in!

Brief overview

New York has a population of about 8.6 million, and it is home to almost every race and language under the sun. Additionally, the city is recognized as the global center for financial services and houses the headquarters for many multinational corporations and business entities. The city comprises five boroughs, namely Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. Of these five, we will focus this article on Manhattan and Brooklyn, so every cost we examine will be a sort of Manhattan versus Brooklyn thing.

Cost of renting in New York

We have mentioned this earlier in this article, but it bears repeating: the primary reason for the high cost of living in New York is the high cost of housing, whether you are buying or renting. But let's focus on renting:  according to Apartment List, the cost to rent a flat in NYC varies by borough and neighborhood. For example, a one-bedroom apartment will rent for $4,045 on average in Manhattan and $3,029 in Brooklyn. A two-bedroom apartment will rent on average for $5,844 in Manhattan and $3,621 in Brooklyn.

Note, though, that rent rates in the city were negatively affected by the COVID 19 pandemic, and the current rates are a 2.95% drop from rent prices pre-pandemic. Still, prices started rising again in January, and you are better off making your move to New York as soon as possible to get housing for lower rates while you still can.

BestPlaces recommends that you earn an average monthly salary of $6,126 to maintain your standard of living in Brooklyn. At the same time, you will need an average monthly salary of $8,333 to maintain your standard of living in Manhattan. This does not include extra costs like babysitting, taxes, housekeeping, and other hidden fees.

Cost of schooling in New York

The cost of schooling in New York is an essential cost you need to consider, especially if you are relocating with children of school age.

If you are considering enrolling your children in private schools, then the average private school cost in New York is $19,220 per year. Private elementary school tuition averages $19,389 per year, while private high schools average $25,035 per year. In Brooklyn, the average cost of private tuition is $19,320.

If you prefer public schools, then know that any child between ages 5 to 21 is entitled to free public education. The New York Department of Education’s Office of Student Enrollment handles assigning children into schools. A crucial point to note is that New York's free education scheme is available only to children resident in New York. Non-residents will have to pay for tuition and may not have access to some DOE benefits.

Since you are moving to New York, this limitation does not apply to you. But it would be best if you waited until after you have moved into the city before enrolling your child in a Department of Education school.

Cost of babysitting and housekeeping in New York

As a family person with children, you may want to factor babysitting and housekeeping into your budget. Whether for emergencies or planned outings, you can’t avoid the expense of babysitting, especially if you do not have any friends or relatives close by.

As with housing costs, babysitting costs vary from borough to borough, and Brooklyn tops the chart in the five boroughs with an average hourly rate of $22.31, and Manhattan comes in second at $ 19.97.

If your babysitter also doubles as your housekeeper, you must agree with her on your expectations and decide on a compensation system that will favor both of you.

Let’s talk about COLA New York.

Cost of Living Adjustment (COLA) is a salary adjustment that companies build into their compensation structures to offset the effect of inflation on employees. COLA can also be applied to Social Security or Supplemental Security Income. It is calculated annually based on the consumer price index for urban wage earners and clerical workers (CPI-W) for a given period.

Cost of living is the amount of money that a person needs to maintain a standard of living, and it covers necessities like housing, food, clothing, utilities, taxes, and health care. Thus, an increase or decrease in the cost of getting these necessities will affect how easily the person will take care of themselves and their dependents.

Since there is no official metric for cost of living, employers use different computations to arrive at their percentage adjustments. For example, some use the previous year's rise in the consumer price index. Also, employers typically use COLA to attract and keep valuable employees, putting them at a competitive advantage.

Thus, if you maintain the same job when relocating to New York, you should expect your employer to increase your salary. This is especially true if you are moving from a place whose consumer goods and prices are not as expensive as New York’s. Conversely, if you are taking a new job, you should use New York's cost of living index to determine how suitable the salary offer will be.

Living in New York as a family versus a single person

Your choice of where to live in New York depends on several factors, most of which are relative to you. Your circumstances will determine which of the boroughs will be an excellent fit for you.

For example, as a family person, you may want a place with a sense of community and safety where you will have no concerns about raising a family. Here, the Brooklyn borough will be great for you, as the neighborhoods in Brooklyn are more tightly-knit. Thus, it will be easier for you to make quality and meaningful connections.

As a single person, you might find the myriad of attractions for which Manhattan is famous more suited to your tastes. In this case, you might want to consider renting with roommates to help mitigate your spending on housing.

We can help you with your relocation.

At Expat Us, we have made it our business to ensure that your relocation to the United States is smooth, quick, and easy. Our services include, but are not restricted to:

●      Area orientation/look and see trip,

●      Household goods move management,

●      Home search/real estate services,

●      School search,

●      Settling-in services, to mention a few.

Please reach out to us today to learn more about us and how we can help you with your relocation.