Why is New York City (NYC) so expensive?
The New York City is very expensive because its population is very high. If the idea of supply and demand is applied over here, there are thousands of people who are in the competition in buying the goods while the goods old are costly. The goods are with high prices as there will be people available still who are ready to buy it irrespective of its high cost.
In New York City, the car insurance and gas is very expensive again. The policies are set in such a way that it is so expensive for the middle class people especially. The city has limited space for the growing population and the city is exceptionally popular. The demand is high in the city for everything and the supply is limited due to which the cost of the goods are high. It is observed that Eastern United States is all expensive similar to the situation at New York City. All the other parts of US other than the Eastern parts provide low cost housing and low cost of living due to unlimited space to grow.
The wages getting stagnant, high prices and low life quality triggered many people to leave the city to cheaper places from 2002 till 2006. The people stopped migrating from New York since 2007, as the rest of the country is under recession and total nation became scanty of vacant jobs. There was continuous loss of jobs in the city. The hotels and restaurants are also very expensive in NYC. The food and clothing are again expensive due to limited supply and high demand. The cabs are cheaper in NYC compared to other places as most of the people live nearby their working places and many people own a car. The items in grocery store also are priced more as the people have less space to grow food by themselves. It is difficult to carry out their own business activities to manufacture few small things by themselves. Therefore, NYC due to all these reasons and many more, is so expensive.