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Most New Yorkers are falling short of covering living costs by $40K a year: Report
By
Karen Yi
Published May 15, 2026
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By
Karen Yi
Published May 15, 2026
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Six out of 10 New Yorkers are struggling to pay their bills and don’t have enough money to cover unexpected expenses or save for the future, according to a new report by the nonprofit Urban Institute.
Families need another $40,000, on average, to make up the difference between what they have and what they need, the report by the Washington, D.C.-based think tank found.
The report builds on an earlier study released by New York City Mayor Zohran Mamdani's administration in April, which measured the city’s “true cost of living.” While more than one in four New Yorkers live in poverty, that report aimed to measure how many families can meet their basic needs but still find it hard to pay their bills, weather unexpected costs or emergencies, pay off debt and save money for retirement. The estimate was required under city charter reforms approved by voters in 2022.
The sobering look at what it costs to live in the city comes as Mamdani promises to speed up how quickly people can move into affordable apartments and grow free childcare options.
“These findings can help inform discussions of how to make living in New York City more affordable and help families achieve economic security,” Greg Acs, vice president at the Urban Institute, said in a statement.
The Urban Institute estimates the true cost of living for a family with children is $160,800 a year. A family without children needs to earn $106,200 to afford to live in the city. Most New Yorkers fall short.
Children are among the hardest hit by the city's affordability challenges. The report found 73% of children live in families earning below the true cost of living.
Single parents are the most likely to struggle to afford the city, with 90% not earning enough, according to the report.
The Bronx has the highest proportion of families who don’t meet this threshold; about 75% of families there are economically insecure. On Staten Island, about 48% of families fall below the cost of living measure — the lowest among all the boroughs.
Of the 62% of families who are financially struggling, about 8% can cover all their expenses but aren’t saving. Another 15% are making ends meet by either falling into debt or cutting back on basic expenses. And 13% are just above the poverty line, potentially living in crowded housing situations, skipping meals or opting out of medical care.
Affordability differences also vary by race. About 44% of white New Yorkers are living under the cost of living threshold, compared with 78% of Hispanic residents, 66% of Black residents and 63% of Asian residents, according to the report.
Tagged
Politics
Zohran Mamdani
economy
new york city
Karen Yi
Karen Yi covers homelessness and poverty. She joined the WNYC and Gothamist newsroom in 2020. Before that, Karen covered Newark for the Star-Ledger and spent almost a decade working for newspapers in New Jersey and Florida. She grew up in Miami and has a dog named Cashew. Got a tip? Email [email protected] or Signal 917-589-1460.
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