Is New York still worth it? (2025)

Summary

New York City, long known for its cultural vibrancy and career opportunities, is facing a major shift as remote work and skyrocketing living costs challenge its iconic status. With the median rent surpassing $3,000 and homeownership rates low, the city is becoming less affordable for many. While cities like Miami are rising as viable alternatives, NYC still draws those seeking its energy, industries, and connections. However, for remote workers, the high cost may no longer justify the lifestyle. The city is grappling with a new reality: balancing its cultural prestige with the economic challenges of modern living.

Takeaways

• 😀 New York City remains the most expensive rental market in the U.S., with high median rents across boroughs.
• 😀 Remote work has drastically affected office usage, leading to a 30% reduction in in-office attendance in Manhattan post-pandemic.
• 😀 The cost of living in New York, especially in Manhattan, has led many residents to question if it’s still worth the expense.
• 😀 New York's homeownership rate is significantly lower than the national average, with only 30% of residents owning homes.
• 😀 In 2025, the median home price in New York City is expected to be around $852,000, highlighting the city’s high housing costs.
• 😀 A shortage of available rental units and slow development has contributed to the city's escalating rent prices, with vacancy rates hitting historic lows.
• 😀 New York City has enacted local laws (e.g., Local Law 18) to regulate short-term rentals like Airbnb, aiming to combat rising rental costs.
• 😀 Cities like Miami are emerging as strong competitors to New York, offering lower costs, no state income tax, and a booming job market for remote workers.
• 😀 Remote work has caused a shift in business dynamics, with Manhattan seeing a significant decline in local spending and tax revenue.
• 😀 New York's iconic office buildings are facing a crisis, with rising vacancy rates and many offices sitting at only 50% capacity.
• 😀 Despite the high costs, New York City still offers immense professional opportunities, cultural energy, and access to global industries like finance, media, and tech.

Q & A

Why is New York City considered the most expensive rental market in the US?

New York City is considered the most expensive rental market due to its high cost of living, limited space for development, and a chronic shortage of housing. Rents continue to climb, and the city has seen a significant rise in rental prices, with Manhattan's median rent approaching $4,500 per month.

What impact has remote work had on New York City?

Remote work has significantly impacted New York City, leading to a decrease in office attendance and local spending. Office workers now spend 30% less time in the office, resulting in a loss of over $12 billion in local spending, affecting small businesses, transit, and tax revenue.

How has the median home price in New York City changed recently?

As of Q1 2025, the median home price in New York City is $852,000, reflecting the city's ongoing real estate challenges and high property prices, making homeownership difficult for many residents.

What is the rule for how much of your income should go toward rent, and how does it apply in New York?

The general rule is to spend 30-40% of your income on rent. However, in New York City, especially Manhattan, a more realistic target is 40-50%, meaning that to afford rent comfortably, an individual would need a significantly higher income, around $160,000-$180,000 per year.

Why are office buildings in New York City facing challenges post-pandemic?

Post-pandemic, office buildings in New York are facing challenges because many companies are downsizing their office spaces due to remote work, and buildings are running at only 50% capacity. Additionally, nearly 47 million square feet of office space is considered outdated, making conversions into residential units expensive and difficult.

What factors have led to the increasing popularity of cities like Miami over New York?

Cities like Miami have gained popularity due to lower cost of living, no state income tax, and a growing tech and finance scene. Remote work and the appeal of a more affordable lifestyle with amenities like waterfront coworking spaces have made Miami a competitive alternative to New York.

How has New York City's population been affected in recent years?

New York City has seen a population decline in recent years, with people leaving the city due to high living costs. In contrast, cities like Miami have seen a significant increase in population due to factors like lower costs and remote work flexibility.

What is the effect of the new Airbnb regulations in New York City?

New York City's new Airbnb regulations, implemented through Local Law 18, prohibit renting out properties for less than 30 days unless the host is physically present. This has made Airbnb rentals more difficult in the city, although some properties are still finding ways to circumvent these rules.

Why is New York City experiencing a shortage of housing?

New York City faces a housing shortage due to limited space for new construction, zoning laws, slow development, and a lack of large-scale affordable housing initiatives. Vacancy rates are extremely low, making it difficult to find affordable housing.

What are the pros and cons of living in New York City as described in the script?

The pros of living in New York City include abundant career opportunities in industries like finance, media, and art, along with vibrant culture, museums, and 24/7 activity. The cons include high rent, expensive living costs, and the difficulty of maintaining a lifestyle due to high bills and limited space. For remote workers, the cost may not justify the benefits.