An Amateur Cost of Living Analysis: Upstate Versus Down
This weekend, we found ourselves paying $6 for a bag of chips in a certain shmancy Columbia County market (we will not name names). Now, before you assault us for squandering our kid’s college fund on fried tubors, we must admit that there were several factors behind the purchase: extreme hunger, extreme dietary restrictions (they were sweet potato chips!) and an extremely badly behaved three-year-old. Also, we were kind of in the middle of nowhere, and this shop was our one chance for non-junky nourishment.
But this gave us something besides the chips to chew on. We always think that upstate is much cheaper than down, and of course that’s the case with real estate — you can get a beautiful house for the price on a studio in New York City. Movies are cheaper, and so are plays; most culture is more affordable up here. But what about food? Specifically, what about the shmancy chips and 72% cacao chocolate that spoiled, obnoxious New Yorkers (we’re writing about ourselves here) are accustomed to finding on every corner. Are there some things that cost more because you have to find them in rural America? Or are we just being silly and should stop eating fancy chips?
When I moved up to Sullivan County, one of the poorest counties in the State, I was pretty shocked (too strong of a word but all I could come up with) at the prices of staples – Gas, milk, insurance, candy bars, beer, eating out, hotel rooms, car repair, etc… were not cheap – it’s not like we are in Ohio just because there is nothing to do and no one around.
I always attributed it to the way NY State is set up, with layers of taxes, regulation, bureaucracies, insurances, etc… – Just a ton of fixed costs that exist everywhere in the State, regardless of the region’s vibrancy or economic dynamicism. In fact, probably the reason why upstate Ny is so piss-poor is because of the onerous and smothering impacts of a high tax/high regulation State.
So, yes, a sandwich in Barryville at the coolest store around does cost $7, but I don’t think anyone is getting rich from the expensiveness of it – it’s just the cost of doing business in NY, paid ultimately, of course, by the end user or consumer.
Real estate is the real deal – but even that gets whacked on the affordability front by the State, County and School taxes.
And to your last point about real estate: NY has the highest closing costs in the nation, buyers are forced to use a lawyer rather than just a title company like most of the rest of the country, and the mortgage transfer tax is a killer.
I have a weekend home in Delaware County but my primary residence is Long Island. I have found a few cost of living advantages upstate–gas and real estate taxes are much cheaper there than on Long Island. Gas can be 5-10%cheaper upstate (I have to use high test). LI taxes provide more services (garbage removal, water service)–but at a rate of 7X over Delaware County!
On the grocery front, I found most of the staples are the same but I do have to pay more for certain brands–I am a Twinings tea drinker and it can be $1 to $1.50 higher for a box of tea at my local grocery store in Margaretville.
As a weekender, however, I also know the importance of shopping locally– I know most retail stores are already living on razor slim margins and they are not making a ton of money on my tea fix ! I do all of my food shopping and most of my household shopping in the local stores. It seems to all even out in the end
That’s true about gas–we always try to fill the tank before heading downstate.
NYS ranks #1 in the nation for excise taxes on gasoline. Add in local taxes on gas along with some gouging that goes on in some places and gas is pricey in NY. I try to gas up in NJ if I come up the Palisades. Still, if I factor in the NYC/NYS tolls with the less expensive upstate gas it is a wash. And the Catskill Farm Blog poster is right: New York is burdened with far too many layers of taxing/governmental authorities.