Is NYC really worth the hype!?

I'm from northeast, go to school in the midwest and signed offer to work at a MM bank in NYC for SA 2022 and after hearing all the pay pumps going on I'm wondering "Is NYC really worth losing ~$15-20K in taxes/rent compared to those living in Chicago, etc?" 

Ik that NYC is a major hub for finance and connections but just wanted to gauge everyone's' opinion to see if there are other things that make NYC worth the hype. 

Again, I want to clarify that I am SUPER EXCITED to be working in NYC I am not complaining at all. Super grateful for the opportunity and to experience the city I just want to see what people think. 

Thanks!

 

I feel like it’s all about what you like to do and who’s in NYC. I’m from NY, went to college in the northeast and practically all of my friends from high school and college are in NYC. This makes it attractive to me simply because almost everyone I know lives here. That being said, the actual city itself and whether you will like it is up for you to decide.

Weather: NY weather isn’t my favorite. It’s usually super hot/humid in the summer and then very cold winters. Not a ton of time between these seasons.

Night life: NY is the best if you enjoy going out and getting fucked up. Really don’t see how you can beat it.

Doing things other than getting fucked up: this is where I think NY has a bit of a downfall. Idk if it’s because my friends are majority degenerates but there doesn’t seem to be a ton to do other than getting drunk and partying.

The taxes suck but I don’t think you can really start a career in finance in a better spot. Good luck!

 

Are you in banking? Do you actually have time to go out and drink very often?

 
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There is this common misconception on this site that Chicago is somehow miles cheaper than NYC. It's just not true. Yes you can get a WAY nicer place in chi than NYC for the same $, but odds are you will end up just getting a more expensive place and just spend the same amount on rent either way especially as your lifestyle changes with your income. Tax difference is there, but it's pretty close. Illinois has very high state income tax and is expected to grow as they are the 2nd worst state in the country in terms of finances outside of new jersey. General COL like food is a bit cheaper in chicago, but keep in mind that Cook county sales tax is the highest in the country and applies to food. The overall difference in your actual take home pay less expenses is very close assuming you are spending the same amount on rent. The only differences will be taxes (NYC local 3% income tax).

The benefit of NYC is the massive amount of finance opportunities in every imaginable vertical. While Chicago isn't bad, your options are very limited and there are far less seats per firm/fund/bank. NYC gives you more optionality, not to mention it's a pretty cool experience for fresh college grads.

Source: I'm from chicago and live in NYC

 
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There is this common misconception on this site that Chicago is somehow miles cheaper than NYC. It's just not true. Yes you can get a WAY nicer place in chi than NYC for the same $

You just contradicted yourself in the same five seconds.  Chicago rent is literally half what NYC rent is for the same place.

 

I’ll push back say you’re missing a key few things. First, Illinois has a flat 4.95% income tax rate. New York on the other hand has both a city tax and it’s state tax , could eliminate if you live in jersey or elsewhere.

also from a housing perspective it is a lot cheaper, esp the high end places like Nema in south loop. Not mention better amenities. As you grow your income and personally, chances are you’ll want a bigger place to wife (or husband ) and kids. You have that ability sooner than you think as you move more north.

Source: associate currently house hacking my 3 flat close to Logan square 

at the end of the day it’s all a matter of perspective, what you value in life and where you are in life as person

 

Yep this is true and totally agree also which I mention above. The flat tax in IL is on the way out. Pritzker and the Dems need more money and I'd be shocked if we don't see a progressive tax rate within the next decade. 

 
Most Helpful

Good input so far.

That said, I would advise you to take something else into consideration.  The big reason to go previously for non-hedonists involved networking an career opportunities.  Post-COVID those networking opportunities have been dramatically curtailed. Most in-person networking events have stopped, a lot of good meeting spots are out of business permanently, and a lot of people are far less willing to meet in person.  Additionally a lot of the big wigs (including those few I'm lucky enough to know) have relocated out of the metro area and now live in Florida or other southern states. One BB has a "no external hires" policy in place for Florida because there's so many internal employees who want to move down there. I'm among those people who have relocated (out of NYC but not to Florida), and quite frankly a major consideration is not only the increased feeling of being unsafe in the city but also the fact that if I were to defend myself the odds are good that the "justice" system would take the attacker's side and release them but charge me with assault (Not that my experience or opinion is really relevant, I'm just giving it as an example of why people might move).  

That might sound a bit negative, and keep in mind there is still plenty of opportunity there and your other posters aren't wrong. The reason I'm throwing these out is for consideration that I do not think NYC is going to remain the undisputed financial capital for the rest of your career and future professionals will need to manage their career with an eye towards both international and intranational mobility.

 
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NYC is the best place in the US to start a career in finance. When you do decide to leave, whether it's to a different industry or different location, if you worked in banking in NYC you will be taken seriously. As a junior, that is a big advantage. You will also build a good network, whether it's from you company or your circle of friends. 

That said, NYC is incredibly uncomfortable in many aspects of everyday life. Coming from the south and college in the northeast, I was shocked at how inconvenient many things are in NYC that I took for granted. Rent is incredibly expensive, and for the first few years you will either live with roommates or have a tiny studio to yourself. Commuting to work and just around the city depends on where you live, but is generally a pain. The subway is grimy at best, and you will run into panhandlers, homeless, crazies, etc. To Attack_Chihuahua's point above, safety is starting to be more of a concern, and I do feel like if anything does happen, the chances of the law being on your side if you defend yourself are lower than elsewhere. Ubers used to be a good option but with no more shared rides because of COVID and a lack of drivers, taking an uber everywhere has become prohibitively expensive. Grocery shopping is only convenient if you have a grocery store nearby, otherwise you'll either have to trek to the store every few days or walk home with loads of bags bursting at the seams. Instacart is an option though. Prices are also way higher than anything I've seen in the south and northeast. If you want to order out, you have to bite the bullet of delivery fees and tip. Nicer sit-down places almost always require a reservation or wait. Household shopping is difficult since Targets in the city are pretty much glorified convenience stores and you can forget trying to bring home large items like furniture. Owning a car is impossible and if you want to rent a car just to go somewhere nearby (Hamptons, MA, RI, etc.), getting in and out of NYC will take up a substantial part of your trip. 

I realize that day-to-day conveniences are not as important for everyone, but my impression after coming to NYC is that I was spending way more time and money on things that used to be a breeze. Taxes are also pretty infuriating coming from a state with no income tax. Also as username1407 said, the main ways to spend your free time are eating and drinking, unless you're into culture like museums and broadway. More outdoorsy activities like hiking don't really exist here.

To sum all of this up, I feel like NYC is a good place to start your career, build a network, and set yourself up for success. However, once you start settling down and looking for a more comfortable lifestyle, I would get out and never look back.

 
 Owning a car is impossible and if you want to rent a car just to go somewhere nearby (Hamptons, MA, RI, etc.), getting in and out of NYC will take up a substantial part of your trip.

Yeah reading this makes me realize you don't understand NYC at all.

 
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The only reason to be in banking in NYC are the exit ops that working at some of the top tier groups that are centralized in the city offer you. If you are not a competitive candidate for those top groups then you will be better off taking a position in a lesser group in a low COL city that still pays close to NYC comp. There are groups in Charlotte for example that do this. Raymond James in Richmond also pays close to street and that kind of income in Richmond is disgusting. 

You could argue that living in NYC is worth it for the culture alone but I disagree. You would have far more fun and be able to enjoy the culture of NYC more once your in your late 20's early 30's and have an established position as a senior banker, PE associate, etc. 

 

Going to speak from the perspective of a born and raised New Yorker in the LES instead of someone who moved here for work after college. 

Personally feel like NYC is worth all the hype you give it. Despite COVID killing vibes a bit (and even then, I know there was plenty of underground stuff happening from July onwards), we are back and better than ever with a ton of new people in NYC which is cool. Housing has been and will always be an issue in NYC. My parents were smart (and extremely lucky) to have purchased a 3 bedroom a prime area in the LES back in the 90s which has since appreciated significantly. Subway is just a built in part of my life that I don't mind the griminess anymore and haven't for so long. This is something that slightly bothers me as there have been countless times when I get on the subway and there are people who evidently just moved here will not sit down, wear gloves etc. 

Saw another comment say that the only things to do here are eating and drinking unless you enjoy the arts. Just gonna be honest and say that your NYC experience is going to be quite repetitive if you confine it to below 96th street and the very edges of Brooklyn and Queens like 95% of transplants/non new yorkers do. Despite growing up in the LES, some of my favorite times/experiences/things to do are in the outer boroughs. You need to expand your horizons. 

NYC has activities for everyone. You just need to be cognizant enough to jump out and look for it. 

 
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For sure. Easiest way to really get comfortable is with food. Arthur Ave by Fordham University in the Bronx is the real little Italy of NYC (brooklyn too). Some of the best italian food in NYC. Similarly, love Chinatown, grew up close to there but I personally think Flushing in Queens and Sunset Park have much better value and much more authentic food for the value. Check out van cortlandt park up in the Bronx or Marine Park down in Brooklyn. Absolute treks to get too, but the sunrises are absolutely gorgeous. Some underrated parks - Brooklyn Bridge Park, Gantry Park, Astoria Park, Ferry Point Park - Mostly only see locals here which is cool. 

 

“Back better than ever?” I don’t even know what to say to that. There will be Covid restrictions within a few weeks tops.

 

No, NYC is not worth it anymore and this is becoming increasingly obvious, some people here seem to be still thinking in the past or to their own older experiences as a junior.

Look at all the terrible stories, never ending days, complaints, etc. this year for analysts. Couple this with the rising costs of life in all aspects today. Why not at least get actually paid for it?

I’m in a southern LCOL spot as an analyst and live like a king here especially relative to everyone else my age. In NYC there are tons of people even younger than you easily out earning you with less work. 

The argument that it doesn’t matter what you make as an analyst because the “real earnings come after that” assumes that everyone is headed to NYC MF or UMM PE and even then comp/lifestyle is still less to A2A in LCOL cities generally.

I truly don’t gain anything from saying this because believe me as long as starry eyed kids continue to funnel themselves to NYC and out of LCOL cities, rents and prices will remain this way and deep down I (selfishly) hope people do not come down here as I’m already beginning to see rents rise here.

That’s just my opinion. I rather grind it out for several years here in banking and set myself up to retire very early on. 

 

Great post. I agree that a lot of people hype up NYC's finance opportunities because they think they'll be the special few to break into MF/UMM. In reality, the competition for those spots is so intense that only the cream of the crop make it. If you're not a top analyst (most people aren't), you would fare much better living in a second-tier city making street money than fighting tooth and nail for that one Blackstone opening. 

 
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NYC is good but I would argue it’s very much overhyped. The culture (especially surrounding finance) can be very homogeneous - the guys can be hardos, the finance girls can be bitchy, the first question you’ll ever get asked is “where do you work?”. It’s a very yuppy socialite culture. “I know xyz, I got a table at Paul’s, I got invited to this sick party in Soho”, etc. 

granted, the women are super hot, educated, and less superficial than LA (although still quite superficial). 
 

if you want to go out 6 nights a week, NYC is a great place. 
 

One of the biggest benefits of being in NYC is that there are a LOT of people (8M, which is 10x SF and 2x LA) and you will be in the same city as a ton of people from high school, college, etc. 

also, the city has a cool hustler / big money vibe given the population, finance culture, hard work going on, etc. 

the infrastructure is unmatched (NYC subways are God’s gift) and you have the Hamptons. 
 

CoL isn’t that bad either. You can shack up in a nice place in Murray Hill (college 2.0) for like 1600-1800. 
 

overall, I’m a west coast guy but have a year+ on both coasts so wanted to chime in 

 

1.8k for an apartment in manhattan is nothing lol

Pros of Murray hills is that for 1.8k-2k a month you're getting a beautiful apartment in a nice building that might have its own washer/dryer + dishwasher. Compare that 2k to a tiny studio in East Village with thin walls, cockroaches and ratatouilles in training roaming around the building.

 
Funniest

>the women are educated

right Timothy, I'm sure you're thinking about whether she studied French literature or political science when you're blowing out Becky's back at 2 AM in a 200 square foot studio, give me fucking break

 
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It is becoming a real liberal oasis (read: 3rd world, high crime, highest taxes in country, etc)

 

simplest way to put:

if you're in finance and don't pass by "Wall Street" you're an absolute nobody

 

I have been in New York all the way through the pandemic, saw things come to a standstill, and have been out and about more recently as things have opened up again.

Nature has healed. People are going out and getting shitfaced at all the usual spots. Broadway and the opera are coming back in the fall. Museums have been open pretty much the whole time.

When you're young, fresh out of school, New York is definitely the place to be. If you're used to living in a dorm you won't find New York living arrangements cramped, especially as someone in banking. And there is no place that offers the breadth and depth of experiences New York does, unless you're one of those nature loving hippies that absolutely has to go hiking and surfing on the weekends. And if that's the case you're SOL in Chicago anyway.

 

I think many of you guys are completely underestimating the chances of lockdowns within a few months time. 

 

Born and raised in NYC. I'll say that DeBlasio's policies have made this city less safe (not requiring bail to be paid, letting mentally sick and homeless roam around the city). Yesterday at 3:30pm I was assaulted by Washington Square Park right by NYU, probably the safest area in Manhattan, for no reason. Broke my finger while fighting this dude that was probably amped up from drugs and had other mental issues.

Outside of the above issue, what I love about NYC is there's a scene for everyone. Are you super liberal or looking for a European clubbing-like atmosphere with trees growing in a club and techno or house music being played? Go to Brooklyn. Interested in seeing a mainstream EDM artist playing? Most clubs in Manhattan and some venues in Brooklyn will have a mainstream EDM artist playing.

Food scene is also amazing. We have all kinds of food. Don't just stay in Manhattan, take advantage of the other boroughs that have a rich cuisine history. As a Queens boy, I think Queens has some of the best Italian and Asian food I've had, and it's a lot more affordable than what you pay in the city.

Overall, I would say if you have a good-paying job this city is lots of fun and is yours for the taking. If you have great pay and work-life balance, it's even better. 

 
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Yes but not for more than your Analyst years! The opportunities (and pressure) are unreal. I believe the experience gained will provide you with the tools and connections (and trauma) to last a lifetime. The analogy that comes to mind is military boot camp - most veterans hated the experience but recognize that they would not be the same person without it!

 

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