New York’s rising cost of living continues to outpace wages and economic growth, according to a new affordability report released by the New York State Senate Republican Conference. The report finds that high taxes, soaring housing and energy costs, expensive childcare, and rising insurance premiums are pushing families, workers, and businesses out of the state.
The 2025 Affordability Report describes what it calls a statewide affordability crisis affecting every region, from New York City to upstate communities. The report says New York consistently ranks among the least affordable states in the nation, with costs for everyday necessities increasing faster than household incomes.
According to data highlighted in the report, New York has the highest individual tax burden in the country and the second-highest overall tax burden when income, property, and sales taxes are combined. The state also has nearly 300,000 regulations on the books, second only to California, which the report says adds to the cost of doing business and discourages investment.
Housing remains one of the largest pressures on family budgets. The report notes that the average home value statewide now exceeds $509,000, about 36 percent higher than the national average. Rising construction costs, property taxes, and regulatory delays have made both homeownership and renting increasingly out of reach for working families.
Energy costs also play a major role, with the report pointing to a 54 percent increase in average residential electricity prices since 2019. The report links higher utility bills to state energy mandates and infrastructure costs that are passed on to ratepayers.
Childcare costs continue to strain families and the workforce, the report says, with parents paying about $17,000 per year for infant care and $15,000 for toddlers. Rising costs and limited availability have forced some parents to cut back work hours or leave the workforce altogether.
Insurance costs round out the affordability picture, with New Yorkers paying among the highest auto, homeowners, and health insurance premiums in the nation. The report cites litigation costs, regulatory mandates, and rebuilding expenses as major drivers behind rising premiums.
The findings are based in part on a series of affordability roundtables held across the state, where residents, business owners, and local leaders shared firsthand experiences with rising costs. The report concludes that while there is no single solution, reducing taxes, cutting regulations, increasing housing supply, and addressing energy and insurance costs could help ease the burden on New Yorkers.
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