NYC cost of living

NYC cost of living 

Most online calculators basically say a $120k salary in city like Chicago or Dallas would need be matched by a $270k salary in Manhattan to be equivocal.  I certainly understand NYC is expensive but for those junior bankers living there is that a realistic number? Does it really cost 2.2x more to live in NYC? 

Trying to understand the theoretical calculator vs the reality of those living there...and if it is spot on then how are you all cutting cost and is it worth it to you now that you have lived there for a while.

5 Comments
 

Yeah, I've seen those calculators. Doesn't seem right for Chicago to NYC, but as a whole they are fairly accurate. I think the big gap that they pull is really accounted for largely by housing costs too (like a mortgage) whereas many on here are renting small studios so the difference ends up being like $700 or so a month. In other words, the COL gap between cities becomes increasingly apparent as you up-size/get older via housing costs and taxes on higher incomes.

In short, that's why I say to not fall for the NYC hype. It's just not worth it unless you are so set on a handful of UMM / MF PE firms. Why work so hard just to have to lose so much of the fruits of your labor to some landlord and taxes. The social experience gap is likewise shrinking between NYC and other cities at a fast rate.

 

That multiplier doesn’t sound insane. Can’t have roommates in NYC after a certain age, I feel like it’s on the younger side but that’s just me. For a reasonably spacious 1br in a nice building you could be looking at $5k/mo. There’s a lot to do so if you like going out the cc bills can get enormous. I know this is all obvious, but I think it’s heightened compared with the cities mentioned, probably at the scale that calculator is using. 

 

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