The household income is $127,894 (is that before or after tax?) but the median is somewhere around $79-85k. Taxes are deducted from one’s paycheck as it’s done in all countries (so the US isn’t any different in that regard). If you live in NYC: how much actually appears in your paycheck when you minus taxes? Consider cost of living on housing, groceries, utilities, council or maintenance fees. Is $80,000 enough to pay those?
Rent is a joke, that’s not the only thing you’re paying. If you’re moving from another state: there’s a deposit too you have to pay on top of utilities (water, electricity, gas), council fees (like garbage collection), maintenance fees (landlord needs to retain upkeep). If you have a car: registration or license renewal (via DMV), gasoline and etc. The internet & phone cost money (LTE from the provider and internet connection from the ISP).
To break them down, is $80,000 per year (after taxes) enough to cover:
- Council fees (i.e. waste & water services from NYC: garbage collection, recycling and water supply)
- Maintenance fees (i.e. apartment needs upkeep, cost landlords money on repairs or renovations)
- Utilities (i.e. using the stove, having a hot shower, turning the lights on: water, gas & electricity)
- Rent (i.e. you pay $5000 a month for a studio apartment but it may cost more due to a deposit)
- Groceries (i.e. are able to fill up the entire refrigerator that can last you weeks without installments)
- Data plans (i.e. Verizon or AT&T charge you money for LTE and internet usage, it’s a subscription)
You might want to check out the NY Times archives. Most local libraries subscribe to the Times.
They have an ongoing feature where they break down how various City residents live on their salary. I think the last one I saw was a college professor living on $130,000/year and someone else doing it on $40,000.00
Another thing to remember is that there are a lot of things that residents know/use that tourists are unaware of. Half price or free access to shows, free admission to museums for residents, sample sales, etc.
Finally, many people work in the city and are willing to take long commutes. I know folks who live in Pennsylvania and drive two hours each way every day. another guy had his family living out of state; he’d sleep at his mother’s place five nights a week and spend the weekend with his wife and kids.
That also adds more expenses: like gasoline, if the route they use has a gas station (fuel costs money) alongside tolls for highways (interstate) plus traffic at peak hour (not even going to discuss parking).
I never saw it myself, but I’ve been told that commuter bus lines have drivers who do one trip a day. They come into the city, park the bus and then go to a 9 to 5 job, and then return home in the evening.
Do YOU drive to work or use public transport? Both cost money (such as the bus fare) and driving (you pay tolls for using the interstate), so there’s no “free” way to commute.
Depending where you live, it is possible to bike to work. Or you can even walk.
I personally knew a woman who lived on Staten Island, in walking distance of the Ferry.
Her Wall Street job was in walking distance of the Manhattan terminal.
That’s pretty rare, but it isn’t impossible.
BTW = The Times articles I mentioned are under the heading ‘affording New York.’