New York and New Jersey face high costs of living, study finds

A new study by financial technology company SmartAsset highlights the extreme cost of living in the Northeastern United States. According to the report, which utilized MIT’s Living Wage Calculator and the 50/30/20 budgeting rule, New York and New Jersey rank among the top five most expensive states for maintaining financial comfort.

In New York, a single person requires an annual income of $124,342, while a family of four needs approximately $291,533 to cover necessities, leisure, and savings. New Jersey follows closely, requiring $113,776 for individuals and $295,110 for families. Researchers noted that due to rising costs in housing, groceries, and transportation, six-figure salaries no longer guarantee financial stability in many regions.

The economic pressure is illustrated by the extreme housing conditions some residents face. In New York City’s theater district, individuals have been documented living in micro-apartments as small as 90 square feet, which lack private bathrooms and feature minimal kitchen facilities, as a means to remain near urban employment hubs.