How much to spend on rent for 1st year analyst?

I'll be starting full-time in NYC this summer and I was just curious about how much I should spend on rent. I know for NYC you don't need to start looking for housing until it gets closer, but I figured I'd begin thinking about it regardless.

If I were to live in Murray Hill/Turtle Bay/Kips Bay (i.e. Midtown East area) with a roommate, how much should I realistically spend? Is it worth flexing a 1 bed/1 bath or flexing a 2 bed/2 bath (and getting a third roommate)? Or would spending around $2,100/person each month be worth it to have my own bathroom (in a 2 bed/2 bath)? Curious what other people have done in the past.

Comments (37)

 
Nov 1, 2016 - 9:17pm

I'm a second year doing $1,200 a month... 1 bedroom flexed into 3. It sounds bad but it isn't, got more than enough space and our schedules don't clash.

Go cheap. I'm doing 8% pre-tax into my 401k + $100 a week into a Roth IRA. On top of that I'm setting aside $200 a week in cash savings.. almost all of that is covered based on my rent savings. I've already got a nest egg of nearly $23k, many associates I know have much less because they simply spend too much.

 
Nov 1, 2016 - 11:26pm

lol you're making 85k/yr (assuming street comp) and you want to "flex" with 2100 for rent? That's a third of your PRETAX income. Do not make this poor, poor life decision.

And I know I'm not counting bonuses but just most of my cost of living budget doesn't include bonuses - it usually goes straight to savings and one blowout night.

 
Nov 2, 2016 - 12:34am

~$2000 for rent isn't ridiculous if it's a nice place and you limit your spending on other things accordingly. When I was looking, Murray hill/Kips bay pads all seemed to be in the 1800-2000 range with a roommate after taking into account broker's fees. Personally I'd rather pay extra for a nicer place with amenities, but if your group works a lot it might not be worth it

 
Nov 2, 2016 - 6:52am

That's a lot of cash. I would not look at a luxury home situation until you can enjoy it and it's expected of you. You're what, 23 years old? The women you're going to be dating, assuming you even have the time, aren't going to care if you don't live in a posh flat.

  • 1
 
Nov 2, 2016 - 8:46am

I would strongly advise spending as little on rent as possible. I am not saying that you need to live on a park bench, in a 1 BR with three other guys, in NJ, etc., but every dollar that you spend on rent is a dollar not going into your 401k. Ya, ya, I know, that sounds like something an old man would be saying, but the difference between someone who starts saving for retirement early vs. someone who starts later is astronomical. You really are hurting yourself, unless retiring early/having a financial cushion is something that you are not interested in.

 
Nov 2, 2016 - 6:11pm

oulixeus:

My first apartment in NYC was in Chinatown, $1,000/month. For that, I got rats, roaches, bedbugs etc. 10/10 would recommend to save money. Live like a 19th c. Italian immigrant.


What do you do today, sir?

Sounds an awfully like what Steve Schwarzman described as his living conditions at his first job in King of Capital. Curious if there is a correlation between living like a 19th c. Italian immigrant with roaches and rats and becoming a billionaire.

 
Nov 2, 2016 - 9:31pm

What about Jersey City? I know they're building luxury apartment complexes all over there and Hoboken which are astronomical rents, but not sure how some side streets are with housing if its bad areas or not.

 
Nov 3, 2016 - 1:55pm

lol yeah.. but Im not so sure if you have to pay NY income tax though since you are not a NY resident ..

idealy, in my case, I would say 20-25% of my pretax. which is more or less 50% of my after tax.. depending on my deductions etc..

Signs of Recession: Banker: “Where’s me Bonus?” Yuppie: “Whadya mean I have to actually work?” Fox Rock Mum: “Lidl’s the place to be seen in now!” Cowen: “It’s not my fault that me and my party are complete f**k-ups - it’s the recession silly!”
 
Nov 3, 2016 - 1:59pm

it really depends on what your other expenses are.. I put up a lot in housing coz I don't pay for school loan etc and I like bigger space..

Signs of Recession: Banker: “Where’s me Bonus?” Yuppie: “Whadya mean I have to actually work?” Fox Rock Mum: “Lidl’s the place to be seen in now!” Cowen: “It’s not my fault that me and my party are complete f**k-ups - it’s the recession silly!”
 
Nov 3, 2016 - 2:01pm

your best option would be NYU dorms if you work at financial district, around 300 a week. I lived in my friends apartment at NY and he only charged me 1k/mon. Right now I live in Miami and it costs me 2k/mon~ this summer I will be living in NYU too.

Signs of Recession: Banker: “Where’s me Bonus?” Yuppie: “Whadya mean I have to actually work?” Fox Rock Mum: “Lidl’s the place to be seen in now!” Cowen: “It’s not my fault that me and my party are complete f**k-ups - it’s the recession silly!”
 
Nov 3, 2016 - 2:02pm

As low as you can go without exposing yourself to violent crime.

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-
 
Nov 3, 2016 - 2:04pm

Well, in that case, it would cost more~ my friend's two bedrooms at Greenwich cost around $4800 a month~ its not exactly a shithole..pretty standard~

Signs of Recession: Banker: “Where’s me Bonus?” Yuppie: “Whadya mean I have to actually work?” Fox Rock Mum: “Lidl’s the place to be seen in now!” Cowen: “It’s not my fault that me and my party are complete f**k-ups - it’s the recession silly!”
 
Nov 3, 2016 - 2:06pm

As low as $1,500 and as high as $5,000 depending on what your definition of "decent" is. Probably in the $2k range for a 1bed in Manhattan, $1k for New Jersey and Brooklyn/Queens.

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-
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