Yahoo Finance Minimum Wage in New York in 2024: Can You Live Off of It?
If you’re in a New York state of mind, it might be because of the many amenities both the city and the state are known for. The city is like no other on the planet, with a diverse and varied culture that reflects the 8 million-plus people who call it home.
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New Yorkers aren’t just from the Big Apple — the rest of the state has no shortage of upsides, including some of the most beautiful waterfalls in the world, unique rock formations and everything from rugged outdoor adventures to more genteel wining and dining along the length of the Hudson.
However, New York also has a reputation for a high cost of living. With the minimum wage in New York state at $15 per hour and slightly higher in New York City at $16 per hour, many people wonder whether it’s even possible to survive working an entry-level job in a state and a city with such high expenses. Here’s a closer look at the financial realities of living on minimum wage in New York in 2024, including the differences between costs inside and outside the city.
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The High Cost of Housing
Housing is the most significant expense for most New York households, and there’s a marked difference between New York state and New York City. According to recent data, the average monthly rent for a one-bedroom apartment in New York state is a little over $1,300. In New York City, that same apartment could cost upward of $3,700.
That’s a huge difference, and it significantly impacts the feasibility of getting by on minimum wage. In more affordable parts of New York state, rent might consume a substantial part of a minimum-wage earner’s income, but in New York City, a minimum-wage earner would be hard-pressed to find any type of affordable housing without multiple roommates to help offset the cost.
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Keeping the Lights On: The Cost of Utilities
A one-bedroom apartment isn’t livable without essential utilities like electricity, heating, cooling, water and garbage removal fees. You might expect these to vary considerably across the state compared to in the city, but surprisingly, they’re about the same. On average, utilities cost around $477 per month in New York state as a whole, whereas in New York City, they’re a tiny bit cheaper, at around $475.
Food and Dining
Food costs differ significantly between New York state and New York City. Prices vary across the state, but they’re much closer to the national average, which is around $3,000 per person per year. Things are more expensive in N.Y.C. — about 40% higher than most of the state. That means monthly grocery bills are more than $470 per person, or roughly $5,700 per year.
Dining out is even more expensive in New York City. The average New Yorker spends almost $3,500 a year on restaurant meals, one of the highest averages in the country.
Getting Around: Transportation Costs
Depending on where you live and how long your commute is, transportation costs can run a fair chunk of change each month. Perhaps surprisingly to anyone unfamiliar with N.Y.C.’s robust public transportation options, residents of the city have a considerable advantage.
People who live in New York state (outside the city) largely rely on personal vehicles to get around, which means costs related not only to fuel but also maintenance and insurance. These average out at around $400 monthly, about 40% higher than the national average. And unless your car is paid for, you’re looking at an additional $540 average car payment each month, for a total cash outlay of $940.
City dwellers mostly get around using the public transportation system, whether by bus or the N.Y.C. subway, which is the largest in the world in terms of number of stations, at 424 stops. The price of an annual unlimited transit card, which can be used for both subway and bus systems, is a much more modest $132 per month.
Staying Well: The Costs of Healthcare in New York
Healthcare is expensive no matter where you are, but there’s no difference between the city and the state, as most healthcare plans are available on a statewide basis with no advantage or disadvantage to living in the city. In New York state, the average cost for a “bronze-level,” or most basic, healthcare plan is around $800 a month — but that’s with an out-of-pocket deductible of $4,600, which must be paid first before your insurance will kick in to cover the rest of the costs.
Breaking It Down: Minimum-Wage Budgets for New York State vs. New York City
Let’s compare all those costs across New York state and the city and see if minimum wage is enough to cover them.
New York State Minimum-Wage Earner
Hourly Wage: $15
Monthly Income (pre-tax, full-time): $2,600
Monthly Expenses:
Rent: $1,300
Utilities: $477
Groceries: $250
Transportation: $940
Healthcare: $800
Total Monthly Expenses: $3,767
Even before taking taxes into account, expenses outpace the average monthly income of a minimum-wage earner by over $1,000. To call this a precarious living situation would be an understatement. Minimum-wage earners usually have to live in shared housing, cut every corner and may still have to skip some necessities — like proper healthcare. Government assistance can take some of the sting out, but if you’re just considering earnings versus expenses, it’s not tenable by any stretch of the imagination.
New York City Minimum-Wage Earner
Hourly Wage: $16
Monthly Income (pre-tax, full-time): $2,773
Monthly Expenses:
Rent: $3,700
Utilities: $475
Groceries: $350
Transportation: $132
Healthcare: $800
Total Monthly Expenses: $5,457
Rent alone costs nearly $1,000 more than a minimum-wage earner in New York City can make in a month. This grim picture emphasizes the significant financial — not to mention mental and emotional — strain on minimum-wage earners in the city. The high cost of living, particularly with housing, makes it nearly impossible to sustain a basic lifestyle on minimum wage without supplementary income or assistance.
Can You Survive on Minimum Wage in New York?
In a word? No. Living on minimum wage in either New York state or New York City presents virtually insurmountable challenges, with some marked disparities between the two putting city inhabitants in a worse situation.
In New York state, the income from a minimum-wage job doesn’t cover basic living expenses, leaving no room for savings or unexpected costs. The margin is so tight that government assistance is a necessity, and even then, the minimum-wage earner can expect a poor quality of life.
In New York City, minimum-wage earners can’t afford rent on a one-bedroom apartment, let alone food, utilities, transportation or healthcare. Though the minimum wage in the state is projected to rise annually by 2026 until it reaches $17 in New York City and its surrounding areas, and $16 in the rest of the state, it’s still clearly too little. Any further increases are intended to be linked to the Consumer Price Index for Urban Wage Earners and Clerical Workers, which is tied to inflation, but again — it is likely to be too little, too late.
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