This is how far your paycheck goes in the NYC area

Are you really getting all the bang for your buck from your paycheck in the New York City area?

By the numbers:

According to new analysis by Bankrate, the cost of living takes a large amount of money out of the average worker’s wages in the New York-New Jersey metro area, where high living costs effectively cut their buying power by over 11%.

The website defines purchasing power, or buying power, as "how much you can buy with a specific amount of money."

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Here's what it takes to be considered middle class in NYC

A new study from the personal finance website SmartAsset took a look at what it takes financially to be considered middle class in 2024 in NY, NJ and CT, as well as NYC.

For example, an average annual wage of $82,050 really feels like $72,933 in the New York City area, whereas $57,700 in the Texas metro area really feels like $61,580.

The website looked at regional data from the Bureau of Economic Analysis to determine how far average annual wages go in some of the largest metros in the United States.

What they're saying:

"Given that the same goods and services can often cost more or less in different parts of the country, it’s not always true that someone with higher wages makes more money," said Bankrate economic analyst, Sarah Foster.

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How much money you need to 'live comfortably' in NYC

New Yorkers need to make $63,000 more than residents in Houston, Texas, if they want to live "comfortably," according to a new study.

"While workers in expensive cities tend to get paid higher wages on average, their pay effectively declines when adjusted for the area’s cost of living," the website said. "Similarly, workers in cheaper areas may make less, on average, but their pay effectively increases because they can buy more with their dollars."

Big picture view:

Other places where workers lose the most ground on their wages are Los Angeles (13.4%), Seattle (11.5%), and Miami (10.6%).

Photo credit: Bankrate

Photo credit: Bankrate

Meanwhile, San Antonio, St. Louis, Charlotte and Detroit were the only large metros in which the average worker’s buying power grew after adjusting for the cost of living.

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