Experts are warning that Long Island’s already high cost of living is only likely to get worse. What’s happening? What can you do about it?
The High Cost of Living on Long Island
It’s no secret that living in NY isn’t cheap. Yet, according to Patch, the Economic Policy Institute and MarketWatch, Long Island is the second most expensive place to live and raise a family in America, only just behind Washington, DC.
According to the numbers, the average family of 4 here needs an average of $19,356 each year for housing, and $16,822 for taxes. Most would call those severe underestimated. Long Island Business News says that the average rent on Long Island as of June 2017 was over $2,200 per month.
A Planet Money report states that the average US household income is around $64,000. Yet, Forbes reports that the median household income on Long Island is just over $53,000, with the average home price at $458,000. While there is a lot of money here, what we appear to have is a cost of living around 50% to 100% higher than the national average, with lower wages for regular workers.
The Dollar Store is moving into 3 new locations on Long Island. That isn’t a sign of great and flush financial times.
The Regional Plan Association warns that it is going to get worse, and growth is likely to stall, unless there are some big and dramatic changes made soon. However, according to Newsday coverage, some of the proposed solutions include more new construction, more tolls, and other charges. Exactly how that will help isn’t totally clear. Though one of the biggest concerns of the association is that the island isn’t attracting high paying jobs and employers. Those employers prefer areas with low taxes, and affordability for talented young workers. Unfortunately, we’ve also been losing a lot of young talent due to the high cost of living, which can create a vicious circle.
The New Tax Plan
Then to kick them while they are down, there is the new tax plan. While it may help some American taxpayers, Long Islanders are unquestionably going to be among the hardest hit in the nation.
Among the provisions of the new tax plan include slashing benefits for deducting property taxes, state income taxes, capital gains protections when selling a home, and mortgage interest. That is going to make it even more costly on Long Island, and take a bigger bite out of many residents’ incomes.
What can you do?
It doesn’t appear that much headway is being made in policy that will lower the cost of living on Long Island. So, you can move, like many others have been. Or get really serious about cutting those bills. Shop smarter on a daily basis, downsize your home if you can, get a better CPA to help with tax strategy and finding the maximum amount of deductions, move, and challenge your property tax bill.