How Do People Afford Living In Manhattan?
If you look at the housing prices in Manhattan, it costs more than a whole average mortgage payment to rent and millions of dollars to buy. How can a normal person with a college degree afford to live this way? I am not talking about people with already millions or billions of dollars to invest in real estate, I am talking about average people who makes 50k-100k a year. What exactly do these people do for a living to allow them the privilege to own/rent apartments in Manhattan? Please give some specific examples.
Affordability of Living In New York City (NYC)?
When you think of Manhattan you think of high rises and monkey suits. You think of abundant money and Times Square. With the bustle of activity and huge quantity of stores, businesses and restaurants, there must be a lot of job opportunities for the average Joe, right? There are, but with average rent soaring above $3,000 a month how can anyone afford to live there?
How Many People Actually Live In Manhattan?
Manhattan is the most densely populated County in the United States. In 2015, Manhattan had 1.645 million residents in only 23 square miles. Of these people, only about 20% live in a house that they own. This means that a whopping 80% of residents are renting! Because of the incredibly dense population in Manhattan, rents have skyrocketed. They are the highest rates in the US.
Cost of Living in Manhattan
Exactly how much does it cost to live in Manhattan? The answer depends on the neighborhood. According to this chart from Zumper:
The rent for a one-bedroom can range from an average of as low as $1,765 in Washington Heights (practically not in Manhattan) to $3,995 in Tribeca. The average cost in all of Manhattan being $3,350 and the average value of a home being $848,600. In addition to the sky-high (no pun intended) housing cost, all other costs associated with living in Manhattan are well above average as well.
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How Can I Save Money When Living in Manhattan?
The answer is not a simple one unless you have a very high paying job. If you do, you can shop around for a reasonable apartment and live comfortably. If not, there are a few options.
- Shop around for an amazing deal in a cheaper neighborhood
- Commute from a neighborhood off of the island
- Find a higher paying job (this is WSO after all)
- Get a place you can hardly afford and live dirt cheap, likely not saving any money (bad idea)
- Get help from your parents until you can afford to live yourself
Get a roommate. If you have a financial job or any other good job you should be able to afford a two or three bedroom with one or two roommates
Learn More About Living in or Near Manhattan
- Lifestyle Of Young Wall Street: 5 Banker Neighborhoods
- Got an Expensive Manhattan Apartment, Will I Have Enough Left Over to Have Fun?
- Can I Really Afford To Live In Manhattan? Someone Give Me A Reality Check Please
- Apartments In NYC: Manhattan Vs Brooklyn
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