Living in New York City is generally considered expensive compared to many other cities in the United States and around the world. This is due to a combination of factors, including high housing costs, taxes, transportation costs, and other expenses. It's important to remember that the metropolitan area is comprised not only of New York City proper, but also of the nearby areas that surround it. The average rent in New York is approximately 82% of the average American wage, according to Stephanie Taylor from Markets Insider. As a result, New York City consistently ranks in the top 10 lists as one of the most expensive cities in the world to live in.
Eating out regularly can also be costly due to several reasons why food and agricultural products are so expensive in New York City. Penthouses in New York City are so expensive that they don't sell, so real estate companies are dividing them into smaller, cheaper units to take them off the market, according to Warren. The city has the largest urban economy in the world, Steve Goldstein reported for MarketWatch, citing a report by Oxford Economics. New York City's purchasing power is 16 percent lower than San Francisco's purchasing power, according to Investopedia. This is largely due to the city's booming labor market.