62 Percent of New Yorkers Struggling to Cover Cost of Living

The cost of living in New York City has risen so sharply that nearly 62 percent of residents are struggling to meet their daily expenses, according to a new study. The report, published by the Mayor’s Office of Equity and Racial Justice, states that the minimum income required for a family to live comfortably in the city is significantly high.

According to the research, a childless middle-income family needs an annual income of more than $106,000 to live in New York City. For families with children, this figure rises to approximately $160,000. However, many families are unable to reach these income levels.

The report was developed based on a 2022 voter-approved initiative that directed the city to determine the “true cost of living.” It analyzed various essential expenses, including housing, healthcare, food, childcare, and transportation.

Using data and models from the Urban Institute, the study examined the economic conditions of around 8.16 million residents. It found significant disparities in cost of living and income across different ages, family structures, races, and neighborhoods.

The findings show that approximately 61.8 percent of the city’s population—over 5 million people—cannot fully cover their living expenses with their current income. This is far higher than the conventional poverty rate, which was only 18 percent in 2022.

The report also states that those unable to meet their expenses face an average annual income shortfall of about $39,600. In addition, around 8 percent of residents can cover all expenses but are unable to save, effectively living paycheck to paycheck.

Racial disparities are particularly notable. Among Hispanic residents, 77.6 percent cannot cover the full cost of living, compared to 65.6 percent of Black residents and 63.3 percent of Asian and Pacific Islander residents. Among White residents, the rate is 43.7 percent.

Children under 18 are also disproportionately affected, with nearly 72.5 percent living in families that cannot fully meet living costs.

Regional differences are evident as well. In the Bronx, 75.1 percent of residents cannot meet living expenses, while in Brooklyn it is 61.5 percent and in Queens 61.1 percent. In comparison, 55.6 percent in Manhattan and 48.2 percent in Staten Island fall below this threshold.

The report highlights that high costs and limited incomes prevent many families from achieving financial security, further exposing social and economic inequalities in New York City.