This 33-Year-Old Engineer Pays $2,100 a Month to Live in NYC with 23 Roommates – 5 Easier Ways to Manage Living Expenses

In the hustle and bustle of New York City, where ambition is as high as in the skyscrapers, the cost of living remains among the highest in the country. For many young professionals, sharing an apartment is more than just a rite of passage. Instead, it can be a long-term strategy to be able to afford living in such an expensive city.

Take Ishan Abeysekera, a 33-year-old civil engineer who moved to Crown Heights, Brooklyn, hoping to make new friends alongside his career. Today he lives in a house with 23 other roommates and pays $2,100 a month in rent.

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“When I say I have 23 roommates, people are like, ‘Wow, what’s that like?’ That sounds wild,” Abeysekera told CNBC Make It. “But it’s actually quite nice.”

Still, there are compromises. “One time I had to wait 15 minutes for the shower,” Abeysekera admitted.

Living with strangers may seem extreme, but it is often necessary. Since the average rent for a one-bedroom apartment in New York is $3,900 per month, you can easily live paycheck to paycheck.

But if cohabitation isn’t your style, here are 5 alternative ways to cut your living costs—without having 23 strangers come home.

Check out rents in cheaper neighborhoods

One of the most effective ways to reduce your living costs is to rent in a cheaper area. It can be crucial to choose a location that offers a little more distance from the hustle and bustle.

For example, a 704 square foot apartment in Little Italy costs an average of $6,451 per month in July 2024 in New York City. But for a similar space in Washington Heights, you’ll pay about $2,612 per month – a huge difference when changing locations.

Even in Crown Heights, Brooklyn, where Abeysekera wanted to live, the average rent for a one-bedroom apartment is about $2,935. So if he preferred this type of housing, he might still have been able to find similar dorm-style accommodation in a slightly cheaper area.

Choose a living space with fewer roommates

Abeysekera may have found community with his 23 roommates, but not everyone is suited to such a busy living space. For those who crave a little more peace and quiet, living with just two or three roommates can still ease the financial burden and provide the opportunity to meet new people without sacrificing personal space.

Finally, there are numerous online services dedicated to finding roommates in New York, and since there’s no revolving door, it might be easier to make lasting connections.

Read more: The cost of living in America is still out of control – use these three “real assets” to protect your wealth today, no matter what the Federal Reserve does or says

Reduce essential costs

Roommates can help ease the burden, but there is always a way to reduce expenses somewhat. Essentials like gas, groceries, utilities, and rent may seem set in stone, but small tweaks—like cutting down on takeout or swapping the Uber for a subway ride—can add up over time.

And let’s not forget insurance. Whether it’s renter’s insurance or car insurance, shopping around for a cheaper rate can result in savings you didn’t know existed. This leaves you with more money to enjoy the city without feeling like you’re overpaying for essentials.

Let your money work for you

Stripping back to the essentials can free up extra cash, but there are also ways to get your money to do some of the heavy lifting for you. Investing even a small amount of change in a diversified portfolio of ETFs could turn those small contributions into something larger over time.

Then there are your savings accounts. Swapping a traditional savings account with an average yield of 0.45% for a high-yield option offering up to 5% can make all the difference. By making this simple switch, you can shift your savings from passive to proactive, building a cushion for your future.

Budgeting for life in the big city

In a city as expensive as New York, budgeting is an essential part of financial survival. By taking a closer look at your monthly expenses, you can make smarter financial decisions and see where savings can be made. Setting a monthly spending limit may sound like a restriction, but it’s a strategy that allows you to set aside a little more each month for your future goals.

These small sacrifices can lead to larger benefits, such as planning a vacation, building an emergency fund, or the peace of mind that comes with financial stability. If you need help creating a monthly budget that fits your lifestyle, a financial advisor can give you valuable advice to get you started.

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This article is for informational purposes only and should not be construed as advice. The provision is made without any guarantee.