New York: Despite six-figure annual salaries, young professionals are on the move

Young professionals flee the city

The New York Exodus: “The city is at a low point”

Saturday 8 October 2022 | 20:57

“There’s nothing you can’t do, you’re in New York now,” sings Alicia Keys in her song “Empire State of Mind.” There is nothing you can’t do in New York. In the current times of inflation, however, this line is likely to have lost its validity.

For example, there are rentals. As early as 2020, the cost of living in the city was 15% higher than the US average. The pandemic and inflation have driven prices up again, so that rents in Manhattan have increased by 26 percent to around 4,200 euros a month and apartments in many parts of the city are only affordable on a six-figure annual salary .

Inflation drives young professionals away from New York

Especially for young professionals who want to make a career in the Big Apple, skyrocketing costs are a disaster. Many of them earn less than their more savvy competitors and also have to take on tens of thousands of dollars in student loans.

“I have no savings and that scares me,” Georgia Bubash told Bloomberg. The young woman from Pittsburgh has lived in the metropolis since she graduated from university in 2019 and has worked in the advertising industry. Enjoy life in New York, sometimes go out to eat in a restaurant – Bubash was denied due to the high cost of living. “I pay so much every day and it falls short of what I’m supposed to be getting,” Bubash said.

Suddenly the rent cost 515 euros more per month

He paid 1,850 euros a month for his apartment in Chinatown. When her landlord suddenly raised the rent by 515 euros a month, it was over for her. She pulled the string and returned to her hometown. “New York is at a low point. It’s not the right place anymore,” says the disappointed young professional.

Taya Thomas had a similar experience, for which life in the metropolis with its picturesque Greenwich Village, Central Park and its original nightlife seemed like a dream at first. “There’s a magic to New York that made me feel like I should be there forever,” the project manager tells Bloomberg. “But I’m at an age where I’ve had to be realistic.”

In Miami, a whole new world has opened up for Taya

And the reality was often anything but picturesque. Despite a six-figure annual income, Thomas went from salary to salary. Finding an apartment with an office room for his work in the home office proved extremely difficult. The admission that he simply couldn’t afford an apartment was even more bitter.

Driven by curiosity and without ulterior motives, the 23-year-old then started looking online for apartments in Miami. There, a whole new world opened up for her: apartments with their own washers and dryers, rooftop pools, and other in-house amenities she could never afford in New York.

Then, in February, Thomas made a decision and moved to Florida. Not only does he save nearly an eighth of his income there: thanks to the lower costs, he can also invest money and pay off his student loan.

Small towns are gaining popularity

Against the backdrop of these fates, it doesn’t seem surprising that the number of young professionals hiring in New York has dropped by 30 percent since the spring. That’s what LinkedIn business expert Kory Kantenga calculated.

Instead of New York, the younger generation would now be drawn primarily to Austin, Texas, Chattanooga Tennessee or Raleigh-Durham-Chape Hill North Carolina, all affordable cities that have experienced a real boom during the pandemic. Daily life is not only much cheaper than in New York. Cities can also score points in terms of safety and work-life balance.

When it comes to careers, it seems young professionals no longer want to focus solely on New York. “It’s a romantic waiting table while you’re auditioning for a play or a Broadway show, but you have to be realistic,” Ania Holland tells Bloomberg. She once tried to build a music career in the Big Apple and worked several part-time jobs. She now she is realizing her dreams of her in Berlin. A logical consequence for her: “I do not recommend burnout.”

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