Why living in Big Apple can leave you broke

February 7th, 2009 - 6:17 pm ICT by ANI  

New York, February 7 (ANI): A new report shows that New York City is the most expensive place to live in the U.S., and that one needs to earn six figures to make middle class there.
Released by the Center for an Urban Future, the report suggests that it is very expensive for the middle class in New York City due to skyrocketing living costs and stagnant wages.
It says that a New Yorker would have to make 123,322 dollars a year to have the same standard of living as someone making 50,000 dollars in Houston.
It further stated that the average monthly rent in New York is 2,801 dollars, 53 per cent higher than San Francisco, the second most expensive city in the country.
Income levels that would enable a very comfortable lifestyle in other locales barely suffice to provide the basics in New York City, the New York Daily News quoted the report as saying.
The report also revealed that New Yorkers paid about 34 dollars a month for phone service in 2006, while similar service in San Francisco cost 17 dollars a month.
Home heating costs are said to have increased 125 per cent in the past five years, and are up 243 per cent since 1998.
According to the report, full-time day care costs can run up to 25,000 dollars a year for one child, depending on the neighbourhood, or about as much as some college tuitions.
Wages in the city remained mostly flat in all boroughs but Manhattan, even during the boom years from 2003 to 2007.
The researchers even revealed that skyrocketing costs, stagnant wages and a deteriorating quality of life compelled hundreds of thousands of New Yorkers to flee the city for cheaper areas during the boom years from 2002 to 2006.
Jonathan Bowles, the Director of the Center for Urban Future, said that the number of people fleeing the city had slowed since 2007 as the rest of the country sank into recession, jobs dried up nationwide, and home values started to sink.
Mayor Bloomberg downplayed the report, but said he was concerned about the constant drumbeat of job losses in the city.
There is turnover all the time. Thats very healthy. Were doing fine, but it is very worrisome, the number of people who are losing their jobs, Bloomberg said. (ANI)

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