By Hank Russell
College graduates thinking about staying in or relocating to New York State may want to think again. A recent study shows how much money it will cost these grads to live here and how much money they will need to make in order to afford to live here.
Among all states, New York was ranked 45th — nearly last — in terms of affordability, according to a study from UpgradedPoints. The recent college grad earnings gap — the difference between a graduate’s median earnings and the income required to cover necessities — was $3,400, the fourth-highest in the nation.
Based on the data gleaned from the Economic Policy Institute 2025 Family Budget Calculator and the U.S. Census Bureau 2023 American Community Survey, New York was one of 18 states in which costs exceeded earnings. Hawaii had the highest gap of $11,840, followed by Alaska ($10,750) and Vermont ($5,530).
Median earnings for recent graduates were $61,770 a year, UpgradedPoints said. (The figures are in 2024 dollars.) That is tied for third in the nation with California. But, a recent graduate in New York would need to make $65,170 annually to cover the basics, second to Hawaii ($65,370).
Among the most expensive costs were housing. Based on data from UpgradedPoints, New York had the second-highest housing costs of $20,890 a year (California is tops at $21,010).
The cost of food each year was $4,780 — the fifth-highest in the U.S., according to the study. Hawaii was tops with $5,540, followed by Alaska ($5,230), Massachusetts ($4,890) and Vermont ($4,870).
Surprisingly, New York had the lowest transportation costs, with recent grads paying $10,630 a year. Vermont had the highest costs with $13,780, according to UpgradPoints.
“For the class of 2025, it’s a particularly difficult time to enter the job market. Economic uncertainty, a cooling in white-collar hiring, and artificial intelligence’s increasing takeover of entry-level roles are contributing to a more competitive landscape for recent college graduates — and higher levels of unemployment,” said the study’s author, Keri Stooksbury.
“With fewer high school graduates pursuing higher education and many recent graduates still searching for stable, full-time work, the burning question these days is how far a college degree goes financially,” Stooksbury continued. “Although what college a young job seeker went to and what major they chose are still key in determining the job they get and how much money they make after graduation, where a graduate lives is also a major factor in long-term financial outcomes.”