Go to navigation Go to content
Toll-Free: (855) 743-0262
Phone: (201) 529-8024
Fazzio Law Offices

NYC Metro is Synonymous with High Tax Bills, Unaffordable Housing, and an Astronomical Cost of Living

Blog Category:
Comments (0)

NYC Metro is Synonymous with High Tax Bills, Unaffordable Housing, and an Astronomical Cost of Living

As housing affordability declines nationally, Manhattan and its neighboring cities remain the most expensive and high tax area in the country to call your home.

9 of the 10 highest counties for property taxes are in the New York City metropolitan area.  Each of Rockland, Bergen, Essex and Nassau have average property tax rates above $10,000 per month.

With changes in the tax laws and elimination of the SALT deduction, these high property tax figures have had a depressing effect on property values in these cities that leaves many questioning homeownership altogether.

While national sales for homes priced between $500,000 and $750,000 increased by 12 percent, homes priced below $250,000 dropped off significantly.  The share of total home sales for first time home buyers dropped to 29%, a decline of 4% from last year, which tracks a larger macroeconomic trend of decreasing homeownership.

"Affordable inventory has been more depleted than expected and the upcoming spring homebuying season will likely be filled with bidding wars and multiple offers," said Joe Kirchner, senior economist at Realtor.com.

LendEDU, an online marketplace for a variety of financial products broke down the finances and average home values for every neighborhood in New York City, and have a nifty interactive map showing which neighborhoods are more expensive/less expensive to live in, what the average mortgage values are, and what the overall credit picture of the residents is in these neighborhoods.  Some of the highlights include:

  • Breezy Point in Queens had the best average credit score (736), while Hunt's Point in the Bronx had the worst average credit score (611)
  • Upper West Side in Manhattan had the highest average income, while Melrose in the Bronx had the lowest average income
  • Battery Park in Manhattan had the highest average mortgage balance ($913k), while Coop City in the Bronx had the lowest average mortgage balance ($139k)
  • Hunter's Point in Queens had the highest average student debt balance ($58k), while Hunt's Point in the Bronx had the lowest average student debt balance ($21k)
  • Battery Park in Manhattan had the highest average credit card balance ($8k), while Sunset Park in Brooklyn had the lowest ($3k)


Property taxes are just one piece of the puzzle.  State income taxes in the NYC Metropolitan region will run you between 7% and 12% of your total income.  Studies by the Council for Community and Economic Research have determined that the overall cost of living is 68.8% higher in the New York City Metro, and even worse in Manhattan.  Parking costs are particularly steep and average about $533/mo!  The premium for groceries and food costs are about 28% to 39% more than in other parts of the country.  According to Zagat, the average cost of a meal out in New York City is $48, which makes it the most expensive city for dining out in the country.

Bloomberg recently reported that taxpayers in Westchester are paying nearly 10% of their adjusted gross income or about $15,000-to-$17,000 per year in property taxes.  At $1,250/mo or more, property taxes in Westchester can run more than an entire mortgage payment elsewhere!  Manhattan is slightly cheaper with average property taxes of $14,000 per year.

Commuters in neighboring cities like the Bronx, Brooklyn, Queens, Hoboken, Jersey City, and Newark can save significantly on the cost of living.  Living in Hoboken can save about $6,000 per year, living in Jersey City can save as much as $30,000 off the cost of living in Manhattan, and living in Newark or the Bronx is even more affordable.

Outside of the greater New York area, only Marin County near San Francisco comes close to these astronomical property tax rates.







Category: Tax

There are no comments.

Post a comment

Post a Comment to "NYC Metro is Synonymous with High Tax Bills"

To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."


Email:* (will not be published)


Notify me of follow-up comments via email.