A new report on poverty in New York City reveals a troubling trend: despite economic growth and declining unemployment in 2023, the city’s poverty rate continued to rise, fueled by the escalating cost of necessities and a lack of policy interventions. The findings come from The State of Poverty and Disadvantage in New York City, Volume 7, an annual analysis by Columbia University’s Poverty Tracker research group in partnership with Robin Hood.
According to the report, 1.6 million adults (24%) and 420,000 children (26%) lived in poverty in 2023. This represents an increase of approximately 100,000 people from the previous year. The poverty rate in New York City now stands nearly double the national average.
The report attributes the worsening poverty levels to the expiration of pandemic-era government assistance programs, coupled with a sharp rise in the cost of basic necessities such as food, rent, and transportation. In 2023, shelter prices in U.S. cities rose by 7.5%, while food prices increased by 5.8%. The New York City poverty threshold for a two-adult, two-child household in rental housing increased by 7.5%, reaching $47,190.
Material hardship, which includes difficulty affording essentials like food and utilities, remained widespread, affecting 26% of adults and 30% of children. Although these figures mark a slight decline from 2022, the report notes that reductions in hardship were concentrated among families above the poverty line, while those already in poverty saw no relief.
Health challenges are also a major concern. The report found that 22% of adult New Yorkers experienced a health problem, and 30% faced either a serious health issue or psychological distress—both figures exceeding pre-pandemic levels.
The report highlights racial and ethnic disparities in economic hardship. Black (24%), Latino (28%), and Asian (26%) New Yorkers were about twice as likely to live in poverty as white New Yorkers (13%). Material hardship affected 42% of Latino New Yorkers and 33% of Black residents, compared to 15% of white residents. Poverty rates were also highest in the Bronx (26%), followed by Queens (23%) and Brooklyn (21%).
Despite these challenges, government transfers and tax credits helped alleviate some economic strain. In 2023, such programs reduced the adult poverty rate by 25% and the child poverty rate by 43%, keeping more than 800,000 New Yorkers above the poverty line. However, the report warns that potential federal cuts to programs like SNAP, Medicaid, and housing subsidies could deepen poverty levels.
A policy package proposed by the New York State Child Poverty Reduction Advisory Council (CPRAC) could significantly aid struggling families, according to the report. Recommendations include expanding the Empire State Child Tax Credit, strengthening cash assistance programs, and creating state-level housing and food benefits. If implemented, these measures could assist over one million children and more than 650,000 families.
As policymakers weigh their next steps, the report underscores the urgent need for sustained efforts to combat poverty in one of the nation’s most expensive cities.
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