Business Lifestyle & Culture
Young adults grapple with high living costs
By Salmoncain Smith-Shomade
Tameka Pierre-Jean, a brand manager at Memorial Sloan-Kettering Cancer Center in Manhattan, has a master’s degree and five-plus years of marketing experience.
But the 28-year-old Brooklyn native cannot afford to live on her own, given that the average rent on a 447 square-foot studio apartment, according to Apartment.com’s most recent data, was more than $3,100, or, 150 percent above the national average. Instead, she lives in her childhood home.
“Rising prices are kind of a norm in New York,” Pierre-Jean said. “I do eventually want to move out of my parents’ house and be able to afford to live comfortably. But as a single person, and with rent requirements, it’s hard to afford affordable housing in New York City.”
Pierre-Jean’s story is all too familiar for young professionals living in New York City and cities nearby.
In New York City and in the New Jersey cities of Newark and Jersey City, housing and transportation expenses — including rent, utilities, gas and car payments — rose by more than 5% in the past year alone, according to a U.S. Bureau of Labor Statistics report.
In 2021, 36% of households didn’t make enough income to meet their fundamental needs in New York City, according to United Way of New York. The report also indicated that residents of color are 16% to 33% more likely than whites to lack adequate income.
Despite rising costs of living in the city, Pierre-Jean is determined to stay and remain connected to her home.
“I mean, my whole family’s here. My whole life is here and New York just has a ton of opportunities,” Pierre-Jean said. “I wanted to be close to home, and I wanted to be in a big city. So, New York just made the most sense.”
Living with mom and dad, a new normal
She knows that living with mom and dad can bring its stigmas. Other students have asked her why she’s still under their roof: “‘Well, you’re an adult. Why do you live at home with your parents? Why can’t you just move out?’ And it’s like, ‘Yeah, I can. But the benefit of being here saves me a lot of money, saves me a lot of headache … ”
She knows plenty of people just like her. “I recently had my ten-year high school reunion and it was interesting. A lot of other people are still living at home, too, that are my age,” she said. “I didn’t expect that. But it makes sense when you think about the rising cost of living in New York, especially if you don’t have a roommate.”
Malkese Edwards, a 28-year-old college counselor, saved enough money to move out of his family’s home into a Bronx apartment in 2019. Nevertheless, he is preparing to leave New York.
“What I spend on groceries here is [more expensive than what] my mom is spending in suburban Connecticut and what my friends are spending in other parts of America on groceries … ” said Edwards, estimating that he spends at least $600 a month eating out and taking taxis to the out-of-the-way high school where he works.
“My intentional choice with my next job is that I’m gonna be working at a boarding school. So my breakfast, lunch and dinner is going to be covered,” Edwards said.
Hundreds of miles south, in Northern Virginia, another of the nation’s most expensive regions, 22-year-old Umar Mahdi has his own money challenges. He lives at home with his family and has no plans to move any time soon.
“It stresses me out a little bit when I’m, like, ‘Hey, you know, in five years, ten years, you want to own a home [but] you keep seeing real estate prices kind of go up, go up, go up … ” he said.
Budgeting to hedge against rising prices
Some young adults say they are trying to be smart with their money in these times of rising inflation.
“Setting a budget is very helpful … Mahdi said. “I don’t need a new pair of shoes right now. I don’t need an iPad or, you know, like, that stuff that you can plan for. It’s those small purchases that kind of add up over time.”
Plus, he added, “I’m the type of person that’s always, like, ‘Hey, money will come back.’ You save the amount that you feel comfortable saving. But I’m not going to stop myself from having a meal with my friends just because society is telling you, ‘Hey, if you don’t spend this now, like, you can save up for a house.’”
“If you look hard enough, you can find cheaper alternatives,” Pierre-Jean. “You might have to make some sacrifices, but if you really want to be in the city, you have to kind of be able to balance your money or else it’s going to be tough.”