Nearly Half of NYC Households Struggle Financially: Study

Nearly half of NYC households struggle to meet basic financial needs and the burden in affording basic needs falls heaviest on Hispanic and Black families throughout New York City, a new analysis prepared for the Fund for the City of New York finds.

Income disparities split sharply along racial and ethnic lines, with Latino and Black households the most likely to fall below the city’s True Cost of Living benchmark.

Latino households fall below the benchmark at 62 percent, and Black households at 60 percent. White households stand at 28 percent.

White households remain the least affected, a pattern that is most visible in Manhattan, where high incomes shield many residents from the pressures felt in other boroughs.

The borough’s demographic makeup reinforces that divide. The majority of Manhattan, about 45 percent of residents according to NYU’s Furman Center, is white, with Hispanics representing 24 percent and Black residents about 13 percent. It is the only borough where white residents form a near plurality and where median household income exceeds six figures.

That income gap appears in the True Cost of Living data. Affluent Manhattan neighborhoods report income inadequacy rates as low as 14 percent, the lowest in the city.

For a typical family of four, two adults, one preschooler, and one school-age child, a household must earn up to $167,285 in South Manhattan. That figure reflects net cash in hand, not gross income, after taxes. It is the highest benchmark in New York City.

Across the rest of the city, the range falls between about $125,000 and $133,000.

Housing costs drive much of that gap. In South Manhattan, annual rent for a two-bedroom unit exceeds $48,000, a figure that rivals or exceeds the yearly earnings of many low-wage workers.

The study finds that 46 percent of working age households do not earn enough to cover basic expenses, pointing to persistent financial strain across Manhattan and the rest of the city, even among households with steady employment.

The report, compiled by the Center for Women’s Welfare at the University of Washington School of Social Work, uses the 2026 True Cost of Living benchmark to measure income adequacy. It includes costs such as housing, child care, food, transportation, and health care.

Only 15 percent fall below the official poverty line. Another 31 percent are above that threshold but still cannot meet basic needs.

“This measure captures the reality that many working New Yorkers are struggling even when they’re employed,” said Dr. Aldrin Bonilla, executive vice president of the Fund for the City of New York. “It shows that income alone, without accounting for local costs, can mask widespread financial vulnerability.”

Households with children face the greatest strain, especially single-parent families. The report finds that 86 percent of single mothers with young children fall below the True Cost of Living benchmark. Married couples with children and adults without children perform better, but many still fall short of what is needed to get by.

“Structural disparities in wages, job quality, and housing costs continue to shape these outcomes,” Bonilla said. “These are not differences of preference — they are persistent inequities in access and opportunity.”

Work does not guarantee stability. Nearly one-third of households with two or more workers still cannot meet their basic needs. The rate rises to 54 percent for households with only one worker. More than 80 percent of households below the benchmark include at least one employed adult.

Housing remains the largest expense across all boroughs, with child care close behind for families with young children. In Queens, annual child care costs for a household with one preschooler and one school-age child exceed $33,300.

Outside Manhattan, the required income is lower but still far out of reach for many families. A household of four needs $125,814 in the Bronx, $132,975 in parts of Brooklyn, and $132,249 in Queens.

The Bronx shows the highest level of strain, with up to 80 percent of households falling below the benchmark in neighborhoods including Melrose, Mott Haven, Longwood, and Hunts Point.

Manhattan shows the lowest rates in high income areas, with as few as 14 percent of households unable to meet basic needs.

“The True Cost of Living benchmark provides a clear picture of what families actually need to make ends meet,” said Dr. Aldrin Bonilla, executive vice president of the Fund for the City of New York. “It’s a tool to inform local policy, showing not just who is struggling but where and why.”