What Makes New York City More Expensive Than London?

New York ranked one of the most expensive cities in the world in 2022 whereas London ranked 28th, according to Worldwide Cost of Living 2022 from Economist Intelligence. It would cost approximately $9,500 US dollars to maintain the same lifestyle as about $7,200 dollars would get you in London, according to data collection project Numbeo. Watch the video above to learn more about the cost of living in New York City and London and why people choose to live there despite the inflated price tag.

Chapters:
00:00 — Introduction
01:37 — Basic expenses
04:45 — Income and taxes
08:12 — Is it worth it?

Produced, Shot and Edited by: Charlotte Morabito
Additional Camera by: Mark Licea, Jack Hillyer
Graphics by: Jason Reginato, Alex Wood, Christina Locopo
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images, Lucy Wong, Lily Slater

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What Makes New York City More Expensive Than London?

[billythekid]

As a Birt who has been living in the USA for the past 25 years, the report ignores one major factor; income tax in the UK includes social security and health care. The UK National Health Service, and UK pensions, are both financed through income tax revenue. For a valid comparison of disposable incomes, which has a direct influence on spending power and, therefore, relative affordability, one should deduct the cost of USA healthcare premiums, deductibles and co-pays, as well as Social Security taxes, from gross income to get net income. If a Londoner and a New Yorker both earn the same dollar amount, the Londoner will have a lot more spending power!

[wrighty]

When people are saying London is cheap, somethings up

[selfridgesforever]

I agree London is cheaper but the salaries here are terrible! The only people living good in London are those who get paid abroad or have their own company where they can fiddle their taxes

[lenaprice]

I was born in NYC and raised in Queens and on Long Island. After college, I lived in Manhattan for nearly a decade and then moved on, after securing a new job in Washington D.C. I honestly believe that the quality of life in the DC metro is much better than NYC. I love to visit NYC, but I have zero interest in ever living there again.

[einsteinisbae]

I don't want people to now start thinking London is cheap. Compared to the rest of Europe, London (and Paris) are by far the most expensive places to live, with pretty mediocre quality of life unless you are in the top 10% of earners in the country.

[MidnightM]

Spent time in London last Summer, having grown up in NYC. 10:38 is absolutely true but, pretty much every other metro I’ve experienced (Boston, DC, PATH, London, Montreal, Paris, Brussels, etc, …) is far cleaner than the NYCTA subways.

[janmeyen]

Having been born and raised in NYC, not going to lie- the main appeal the city has for me is friends and family at this point (and the fact that you can live without a car). Besides that, the place is so broken that even natives like me often leave. And this is the case in the major US coastal cities- they just look to engross the landlords and business owners, the wealthy and the like. NYC has turned its back on its native sons and daughters. Really is embarrassing and shameful to put things mildly

[davidempire]

Fun fact, you can travel from the center of Manhattan to the center of London without going outside? Here's how.
1. Take the E, J, or Z train to Sutpin Blvd/Archer Avenue
2. Go up two levels and take the AirTrain to JFK Terminal 4
3. Take Virgin Atlantic to London Heathrow
4. At London Heathrow, transfer to the London Underground
5. Take the London Underground to the center of London

You have arrived in London without stepping a single foot outside. While it may not feel like being in the same city, I believe it adds a certain kind of connection between New York and London you may not get with other cities

[drew]

Quite often people forget that NYC is not just Manhattan island but also includes the boroughs. Manhattan island is very expensive for sure because for one thing the real-estate is very limited but when you factor in the boroughs it's not so bad

[leeraewi]

New York feels more scammy - as the Brit says, the price gouging everywhere you turn, and the fact that a lot of basic services seem kind of broken and not kept up-to-date. Like, you can't buy a regional bus ticket with a foreign credit card...

[zupermaus]

As a Londoner I finally went to NYC after a lifetime of being enamoured (thanks to a childhood brought up with US tv programmes) and found the cities were starkly different. NYC was taller and the built environment more imposing, London more crowded and more buzzing (NYC was too, but not like London), especially at night -London more historic, cleaner and beautiful, but less dramatic. Also people mix more in London, and class and race don't correlate. NYC was way friendlier, but more edgy -with the inequality far, far higher and evident on every street, every time you took the subway between places, every time you saw the homeless and mentally unstable on each corner, whereas in Europe your taxes would go towards much more of a safety net, less crime and free healthcare for all.

For example, although the US pays considerably more and costs more, the lowest 10% still earn half their equivalent in the UK -the Gini Coefficient now puts the US on par with India and beating Tanzania for inequality -far behind China now -and NYC is the worlds most unequal city in the OECD. The very sketchiest, poorest streets in London are nowhere near what was a norm the minute you left southern Manhattan (sometimes just a case of crossing a street), which my buddy called 'Athens on trash collection strike, but with rats'. What was most surprising was food wasn't that great in NYC (though portions were HUGE) and marginally worse than London, at every price level -what you pay top dollar in NYC for is much more affordable and a norm in the UK. Though this could be up to personal taste -I've heard the same said vice versa.

Americans were far friendlier, their customer service was so much better and just the general kindness of people on every level shone through. Also weather was better - you actually saw sunshine. I also adored the architectural ensemble (massive skyscraper nerd) -and everywhere felt like a movie set.

[yeshwathram]

While NYC is more expensive, I feel that the salaries compensate that, however in London its a completely different thing. Salaries here are pathetic to the cost of living here.

[TheLiamster]

I love living in London but I also love visiting New York

[SummarizeYT_]

🪄✨ Made with SummarizeYT
​0:15 - New York City is more expensive than London; it would cost approximately $9, 500 USD A month to maintain the same lifestyle as about $7, 200 would get you in London.
​2:07 - Rent prices in New York City are about 47% higher than in London.
​3:18 - Grocery prices are 70% higher in New York than in London.
​3:47 - New York is also more expensive when it comes to having fun and going out.
​5:04 - Local purchasing power in New York is about 19% higher than it is in London due to the average New Yorker earning a little less than $1, 400 per week, whereas London's average is a little less than $1000 or £805.
​6:55 - The value-added tax in London is set at 20% for most goods and services.

[tailor]

Just comes down to what you want from life. I left London at 28 to move to a small village / suburb. I miss the constant events in London but I have a 2 bedroom apartment for a price that wouldn't even get me a bedroom in a shared 5 bed apartment in London. My salary is a little lower but in my opinion my life is a lot better. London / NYC are amazing cities....if you're a millionaire or you know how to seriously budget. Otherwise, go elsewhere.

[SalvatorePalmaJ]

Hi guys local NYer here. If you are involved in your communities in NYC, there is literally always something free/ very affordable to do and it feels just as good, if not better, as the pricy dinner night out. It comes down to how connected you are to any urban fabric that will make your experiences outweigh your financial abilities/willingness. Say hi to your neighbor!

[Ali_b]

I’m from London and flew to New York yesterday. New York is expensive. Like really expensive and adding the tax to whatever you buy makes it even worse 😅

[lukethompson]

I love the line @0:43 that sums it up: “The appetite for price gauging is much stronger here”. This is true! It’s so bad that if a cashier short changes you, it’s taboo to even say anything! At a bar in NYC, they always short change you $1-3, even if a $3 per drink gratuity was already added on, in effect forcing you to give them a ginormous tip. In NYC, you’d be looked at weird if you contested that, whereas in London, you would look like a pushover if you didn’t object

[hejiranyc]

I've been living in Manhattan for 25 years and I've grown to absolutely despise the place. I even bought a winter home in Florida. But I just can't quit NYC. It's more than a place to call home... it's actually a part of my identity.

[brendane]

Both are great cities IMO. But very difficult to live there without a two-household income with both people being high earners.