Living cheaply in New York City isn’t the easiest thing to do. Necessary living expenses in the Big Apple are much higher than in other cities. It’s the second most expensive city in the United States and North America. NYC is also the third most expensive city in the world.
A single person will spend nearly $5,000 per month just to meet the necessary expenses. Then there are the taxes. NYC has some of the highest state and local income taxes in the country, ranging from 4% to 8.82% state taxes and between 3.078% to 3.876% city tax.
To compound the problem, New York City has the least affordable housing in the country. Furthermore, car insurance premiums, gas prices, and groceries are also substantially higher. On the other hand, living in New York City means you are at the center of it all.
Let’s look at factors that can help you learn how to live cheap in NYC while not eliminating the sights, sounds, and experiences that make New York City such a fantastic place to live.
Choose Your Borough Wisely
New York City is made up of five significantly diverse boroughs, Manhattan, Brooklyn, Queens, Staten Island, and The Bronx. Your average expenses will depend on which district you live in.
If you choose to live in an area where you pay lower monthly rent, you might need to shell out more for transportation fees. On the other hand, if you live within walking distance to your work, your lease may be astronomical. Let’s take a look at some main features found in each of the five boroughs.
Manhattan
Manhattan is the iconic picture of New York City. Here you’ll find skyscrapers, bustling pedestrians and Central Park. It’s the center borough and is situated on a narrow island. Within the borough of Manhattan, you’ll find the neighborhoods of the Upper East Side, Greenwich Village, and the Upper West Side.
The Upper East Side has a high concentration of private schools and is home to the United Nations, the Guggenheim Museum, and the Metropolitan Museum of Art. Greenwich Village is where you’ll find Washington Square Park and New York University. From here it’s a short commute to the Financial District and midtown.
Upper West Side borders the west side of Central Park and Riverside Park along its eastern border. Manhattan is the most expensive New York City borough to live in. Its proximity to Central Park is a trade-off for reduced living space.
Brooklyn
Brooklyn may be less crowded and have a more hipster vibe, but it may not be substantially cheaper than Manhattan. The Williamsburg area is where it is for the arts and music scene of the city while the Park Slope and Prospect Heights neighborhoods are where many affluent families and professionals call home.
Brooklyn has a thriving local economy that may save you trips downtown. There are also areas where it’s not as expensive to live, making it worth consideration.
The Bronx
North of Manhattan, is The Bronx, the home of the Yankees and the Bronx Zoo. The Fordham neighborhood hosts Fordham University and the New York Botanical Garden. It attracts student residents because of its lower cost of living.
On the other end of the spectrum is the Riverdale neighborhood, which is full of tree-lined streets and suburban living. Because of the lack of internal infrastructure in The Bronx, you may need to keep your car to get around this borough.
Queens
Ethnically diverse Queens is the largest of the five boroughs and the most easterly. Astoria neighborhood is close enough to be practical to Manhattan without the hefty price tag. Queens has the second-highest borough population, after Brooklyn. If you need to travel by plane often, both the John F. Kennedy International Airport and LaGuardia Airport are located here.
Staten Island
If you are looking for suburban life on the fringe of New York City, then Staten Island might be the place for you. This borough connects to Manhattan by ferry. The Great Kills neighborhood has park and beach access, along with running and biking trails while the St. George neighborhood is an easy ferry commute to Manhattan.
Rent Something You Can Afford
While it is possible to find a decent apartment that won’t break the bank, on average, rent in New York City is quite high. The average rent in all New York City boroughs is nearly $3,500 per month. However, rent varies depending on the neighborhood.
In Manhattan, a one-bedroom apartment in Washington Heights will cost you about $2,800 per month while in Soho, you’ll pay over $7,000 for the same square footage. A larger one-bedroom apartment in Brooklyn will be between $2,100 and $3,000 a month.
You’ll pay about $2,100 per month for an average one-bedroom in The Bronx. A studio apartment in Queens can be found for as low as $1,100 and a one-bedroom for about $2,100. Staten Island is the most affordable borough to live in with one-bedroom apartments averaging about $1,400 per month.
You’ll find the least expensive apartments in New York City are East Brooklyn, High Bridge, and Tremont. The most expensive neighborhoods are Soho, Garment District, and Tribeca. If you’ve found an apartment in the area you want to live in, but it’s still too much for you, consider getting a roommate or two to cut the rent down to a manageable slice.
You may also qualify for assistance from the NYC Housing Authority. Affordable housing in New York City is available for specific individuals based on their annual income.
Take Transportation Costs into Consideration
The inner boroughs have low parking availability. If you want to own a car, you’ll need to pay for garage space, and that can cost you. New York has one of the most expensive long-term parking averages in the world. It can cost you over $600 per month downtown while outlying boroughs are less expensive. Two-hour off-street parking in New York will cost you about $35.
Gas prices are also higher in New York City than in the rest of the country. For example, gas prices in early 2020 in NYC were about $3.49 per gallon, while nationwide, a gallon of gas is just $2.50. Don’t forget about the price of insurance. The average cost of car insurance in New York City is $210 per month. On average, a U.S. driver pays $125.16 per month in other areas.
With vehicle ownership costs sky high, it should come as no surprise that many New Yorkers do not drive. According to the U.S. Census, approximately 55% of New York City residents do not own a car. Only 27% of the nearly four million city workers commute via truck, car or van. Most residents use the public transit system.
The Metropolitan Transportation Authority (MTA) has more stations than any other metro system in the world. It has three times the number of riders of the next five largest cities in the U.S. More than 30% of NYC commuters use it, and more than 8.5 million people ride the MTA daily.
A single trip on the metro is $2.75. Monthly passes can be purchased for $127. Subway, railway, and bus passengers who are 65 or older or have qualifying disabilities can buy monthly passes for half the regular rate.
The MTA will meet your transit needs in all but two of the city boroughs. Transportation to and from The Bronx to the city center is no problem via MTA. However, the infrastructure needed to navigate the streets within the Bronx is complicated, so you may spend more time and money on transportation, depending on where you need to go if you live there.
Because of its location, Staten Islanders must use the ferry to cross the waterway into downtown. The NYC Ferry now provides service between Manhattan, Brooklyn, Queens, and the Bronx on the East River at the same price as a ride on the metro, giving you yet another way to get around economically.
Another way New Yorkers travel is by bike. There are over 1,300 miles of bike lanes in the city. Nearly 50,000 residents commute by bike daily. If you don’t have a bicycle, CitiBike is a bike-sharing setup found in Manhattan, Brooklyn, and Queens. It has 850 stations, and annual membership will cost you $169.
Walking is by far the least expensive way to get where you want to go in New York City. Nearly 6% of workers walk to work in this city. NYC has the highest Walk Score of the country ranking with a whopping 87.6. The Walk Score measures pedestrian friendliness (crosswalks, paths, right-of-way) and proximity to amenities.
Stay away from Uber, and Lyft rides if you are trying to save money. Even though they are convenient, they come with a hefty cost. Consider using other rideshare options instead. VIA NYC Rideshare offers all rides within Manhattan for $5 weekdays between 6 am and 8 pm. NYC Yellow Cabs and NYC Green Cabs can be summoned via Curb NYC Rideshare.
Watch out for Food Costs
Even groceries cost more in New York City. You can expect to pay about $150 more than the national average for a month’s supply of food. Then there are all sorts of restaurants to enjoy in NYC, which will just blow your budget to smithereens if you indulge too much.
Save money on produce by shopping locally. The farmer’s markets and street vendors will have fresher goods than the superstore and at a less expensive price. You may need to stop and two or three stalls or markets to find everything you want, but saving some cash makes it all worthwhile.
You could also join a food co-op to save on your grocery bill. Food cooperations charge a membership fee, which allows you to receive a certain quantity of fresh produce each month. If a rooftop garden isn’t a possibility for you where you live, then consider joining one of New York City’s community gardens.
Takeout and restaurant dinners should be occasional treats, not an every night occurrence. Here’s where meal planning comes in handy. If your commute is long and tiring, do some meal prep on the weekends and freeze your dinners. That way, when you get home, you can just pop it in the oven or microwave while you unwind.
Conserve Electricity and Water Utilities
Utilities are where you’ll get a little break when it comes to expenses. As of 2020, electricity, heating, cooling, water and garbage expenses for an 85 square-foot apartment will cost you around $83. Compared to the national average of $100 to $150, you’re saving a bit. Your internet bill will also be slightly less. In NYC, 60 Mbps or more will cost you approximately $54, while the national average is around $66 per month.
New York City gets mighty cold in the winter. Be sure to program your thermostat only to heat your place when you are home to save on the heating bill. Along the same lines, double line your windows with insulation film or put up insulated curtains in the winter.
If you are able, change out your water and plumbing for low-flow options. If you are renting, you might not want to take on the expensive. However, you can be more mindful of your water usage. Turn the faucet off when you are brushing your teeth. Catch drips and use that water for plants.
Unplugging your devices when not in use in yet another way that you can save a few pennies on your electric bill. If you need to cut back even more, replace your lights with energy-efficient bulbs.
Cheaply Furnish your Apartment
You don’t need to spend an arm and a leg to furnish your apartment in New York City. Start by hitting the thrift stores. Check listings on Craigslist. Then there’s the Buy Nothing Facebook group or the NextDoor app where people list items they are giving away for free.
Furniture outlets offer items that have been scratched or dented at a reduced price. Stores like Target and Ikea offer inexpensive put-it-together-yourself furniture options.
If your sojourn in New York City is short-term, you may want to rent your furniture. However, if you are staying more than a few months, it is cheaper to buy used furniture to fill up your living space than renting.
Entertainment
Entertainment isn’t cheap either in New York City. The average movie ticket is over $15. If you are interested in basketball, a ticket to the Knicks game can set you back almost $200. Baseball is New York’s favorite pastime. A ticket to watch the Yankees play at Yankee Stadium average about $84, while a Mets game will only cost about $60.
Enjoy Free Entertainment
Don’t despair. With a city of this magnitude, there are always things to do for free to while away the time. Central Park covers 863 acres and is free for all to enjoy. You can relax by the Bethesda Fountain, one of the largest fountains in the city, or take a run around the Central Park Loop.
You could spend the afternoon in the Shakespeare Garden or explore the Belvedere Castle. Take a stroll over the 40 bridges and arches found around Central Park or attend one of the free events during the annual Shakespeare in the Park summer festival.
The New York Public Library hosts more than 93,000 programs each year for everyone, from toddlers to seniors. Perhaps you could learn a new skill, volunteer to teach English as Second Language learners, enjoy an art exhibit, join a writing group, or check out a book.
The Brooklyn Brewery taproom in Williamsburg is free to tour on the weekends. They also host parties, concerts, and beer and food tasting events regularly that can be inexpensive entertainment options, depending on the number of beers you drink that is.
Take a cruise on the Staten Island Ferry as it travels the New York Harbor from Whitehall Ferry Terminal in Manhattan to the St. George Ferry Terminal on Staten Island. The ferry runs 24 hours a day, seven days a week, and it’s free. You’ll get a boat side view of the Statue of Liberty while enjoying your time on the river.
What better way to ring in the New Year than at Times Square? It won’t cost you a dime. Be sure to dress warmly, though. Times Square also hosts events throughout the year. You can renew your vows publically on February 14, view an art display, or enjoy a concert on Tuesday and Thursday evenings during the summer.
Head to the beach. NYC Parks maintains 14 miles of beaches open from Memorial Day weekend until after Labor Day. Enjoy a relaxing day in the sun at Coney Island, Brighton Beach, or Rockaway for free. Why spend $15 for a movie ticket when you can watch a movie under the stars for free at Hotel Hugo, Coney Island, Brooklyn Bridge Park, Bryant Park, Pier 63, and Prospect Park all summer long.
Twenty-one museums are either always free. Forty-one zoos, gardens, and museums have free admission on certain days, including the Brooklyn Children’s Museum, The New-York Historical Society, Bronx Zoo, 9/11 Memorial & Museum, and the American Folk Art Museum.
Take Advantage of Low-Cost Entertainment Options
Theater
There are some things that it would be a shame to miss while you are in New York City. Broadway shows are one of them. Tickets to performances are expensive, ranging from $109 to $113 per seat.
However, if you are willing to stand in line, you may be able to score an economical ticket through rush, lottery, standing room only (SRO) deals. Many performances also offer students and young professional discounts. If a Broadway show is still too dear even at a discounted price, then consider one of the many options available off-Broadway.
Art
The Metropolitan Museum of Art is another must-see attraction. General admission tickets are $25; however, for New York State residents and New York, New Jersey, Connecticut students, the amount you pay for tickets is up to you. If art is your thing, you just may wish to become a member. For $110 a year, you and one guest have unlimited free admission plus early access to select exhibitions.
The Solomon R. Guggenheim Museum has a $25 admission price. However, when the museum is changing exhibits, tickets are discounted. If you become a member for $75 annually, you’ll receive invitations to special events, savings at the store and restaurant and pay just $5 for a guest to join you.
Culture
Soak up the culture in Little Italy. Be sure not to miss the Feast of San Gennaro, an 11-day street fair every September. Just a few blocks away, you can visit Chinatown and enjoy some authentic Chinese cuisine at one of the 300 restaurants.
The second Sunday in June is The Puerto Rican Day Parade, which travels from down Fifth Avenue. This parade honoring all Puerto Ricans living on the United States mainland is one of the largest in the entire country.
South Bronx is the birthplace of hip hop. You would be remiss to not go on one of the many NYC Hip Hop tours through The Bronx, Harlem, and Brooklyn. And what would New York City be without the Statue of Liberty and a tour of Ellis Island where so many of our country’s ancestors arrived?
Items You’ll Have to Do Without
We’ve already discussed how Ubers and takeout every night are things to avoid if you want to become adept at how to live cheap in NYC. There are some other items you’ll most likely need to avoid, like that morning frappuccino at Starbucks. It might seem like a small thing, but $5 or more every day adds up quickly. Instead, invest in a french press and make your own coffee at home.
Another expense you can eliminate is gym memberships. With initial costs from $50 to nearly $100 and monthly fees that range from $30 to almost $400, a gym membership is quite pricey in New York City. Cut costs by enrolling in the free yoga classes at Prospect Park, which is held every Thursday at 7 pm from June until the end of August.
Alternatively, you can jog around Central Park, bike to work, swim in the ocean, or wander through the botanical gardens to stay in shape for free. You may even be lucky enough to live in a fifth-story walkup, making every trip a thigh crunching workout.
In 2018, the price of cigarettes in NYC went up to $13 a pack, the highest in the entire country. In 2019, NYC imposed an additional tax of 20% on e-cigarettes too. If you are looking to live on a budget in NYC, smoking will set that idea ablaze.
Pass on the drinks when you go out. A pint of beer might cost anywhere from $5 to $9, while a single cocktail in a downtown club might be as high as $17. Stick to water, which is usually free. If you must go out for a drink, head to a local pub with a happy hour special.
Recap
The Big Apple is certainly not the least expensive place on the map. However, it is possible to create a lifestyle that enables you to learn how to live cheap in NYC. Let’s review what we have discussed in this article and see where you can save.
To save on housing and utilities, you should choose the borough that meets both your living expenses and transit needs. Get a roommate to help with costs. You should also winterize your apartment, conserve water, and use energy-efficient lights. Furnish your apartment and find great clothing deals by shopping at thrift stores and use Craigslist or other freecycle apps to furnish your apartment.
When you need to save on food and drink expenditures, shop at the farmer’s market, or join a co-op. Each week plan your meals and prepare some ahead of time. Keep dining out and take out orders to a minimum. When you go out, skip the alcohol. The morning coffee from a pricey coffeehouse will also have to go.
You may need to commute to work. To cut costs, travel like the locals and get rid of your car. Instead, walk, bike, or take the MTA to your destination. Avoid Uber, and Lyft rides like the plague. Staying healthy is essential. In NYC, you can maintain your fitness level on the cheap by giving up smoking. Instead of paying for a pricy gym membership, swim in the ocean, jog in the park, take a free yoga class, use your bike, or walk.
To enjoy NYC for free, take advantage of the free concerts, events, museums, and movies offered throughout the year. Visit the New York City Library and Central Park for heaps of free and low-cost activities. Don’t skimp experiencing all there is to do at the cultural festivals and parades.