Long Island Cost of Living

Living comfortably on Long Island today is more difficult than ever as the pandemic of 2020 has caused housing costs to soar all across the USA. Long Island, NY was already expensive prior to the pandemic, and now I feel their is an affordability crisis here since everything is so expensive. To pay $500,000 for a house on Long Island is a lot of money, and when you find one it is old and needs a TON of work. With the low inventory here, there can be bidding wars on houses that need a lot of TLC.

According to the Economic Policy Institute’s family budget calculator: A family of 4 (2 adults and 2 children) would need to earn $142,695 per year or $11,891 per month. That’s almost 12K per month to live in the Nassau/Suffolk County area.  The breakdown is as follows:

Housing: $2035

Food: $929

Childcare: $3009

Transportation $1272

Healthcare: $1427

Other Necessities $1024

Taxes: $2145

It’s crazy that childcare costs more than housing on Long Island based on the above numbers. Ultimately childcare becomes “another mortgage payment.” The taxes above are inaccurate. Those alone can cost you around 1K per month or more.  As a Long Island homeowner I can tell you the housing costs are higher if you want to own a home today. For a new homeowner, buying a home that costs 500K with a 3.5% down payment at a 6.8% interest rate, on a 30 yr mortgage is $3146 per month.  Then you need to add the property taxes, home insurance, PMI. So we are talking over 4K per month on a mortgage payment. It’s really expensive to live here now.  Renters have a lower cost but it’s still high. Renters are looking at 2K per month minimum- for a small apartment.

Also there is no allotment for any kind of savings here -for example retirement. So to live comfortably on Long Island you really need to have a high income or you will struggle to make ends meet.

This is the reason why so many homeowners want to leave Long Island when they retire or when renters want to buy their first home.  They are seeking to move to an area where the cost of living is more affordable.  If you are looking to sell your home on Long Island, contact me so I can listen to you story and assist you with all your needs.

Yvonne Varas is a Real Estate agent on Long Island, NY
Follow me on Facebook

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top