State report says NYC households spend nearly $13G annually on transportation costs

The average New York City household spends nearly $13,000 each year on transportation — higher than any other expense except housing, according to a new state report.

The report, from New York State Comptroller Thomas DiNapoli's office, said that transportation costs grew 56% in the New York Metropolitan region over the last decade, accounting for 14% of household spending. That’s the second-highest category of costs for New York households, only behind housing, the report found.

However, the study showed that New York’s transportation costs were below the national average of 17%, and have grown at a slower pace than other major cities.

Still, the cost of getting around — including car purchases and leases, insurance, gasoline and public transportation fares — remains "a substantial expense for many New Yorkers," DiNapoli said in a statement.

"City residents are fortunate to have a public transit system that operates around the clock to help keep some costs relatively low," DiNapoli said. "City and state officials need to keep a close eye on transportation costs to ensure they remain affordable and help to offset higher costs of other household essentials."

At $12,836, annual transportation costs for the average New York household between 2022 and 2023 were below six other cities, including Houston, San Francisco and Los Angeles, but above other big cities, including Philadelphia and Chicago, according to the report.

The report noted that New York transportation costs, “fueled by inflation” rose by nearly 25% between 2019 and 2023, including from higher-than-usual auto loan terms. As a result, transportation prices rose by more than 1.5 times as much as overall prices during that period, but have since come down, according to the report.

Vehicle purchases made up nearly 35% of transportation costs in the region during the study period—more than any other category.

However, the rate of vehicle ownership in the region, about 44%, was far lower than the national average of around 93% — a testament to New Yorkers’ high reliance on public transportation. Only 21% of Manhattan residents owned a vehicle, according to the study. In contrast, in Staten Island, where transit options are more limited than the rest of the city, nearly 83% of residents own a vehicle, the study found.

New Yorkers’ use of public transportation is far higher than that of most other Americans, according to the study, which found that 48% of city households relied on transit, compared to the national average of 4%.

Despite MTA ridership still being below pre-COVID levels, public transportation usage in the region is up about 105% from 10 years earlier, according to the study. Meanwhile, the cost of a subway ride increased about 29% over that time, from $2.25 in 2013 to $2.90 last year.

The MTA plans to increase fares by 4% next year, sticking to its schedule of raising rates every other year.

By Alfonso A. Castillo

alfonso.castillo@newsday.com@alfonsoreports

Alfonso Castillo has been reporting for Newsday since 1999 and covering the transportation beat since 2008. He grew up in the Bronx and Queens and now lives in Valley Stream with his wife and two sons.