Cost of Living in Albany, NY [2025]

Albany, New York, is the charming capital of New York state that offers a unique blend of cultural attractions, outdoor adventures, and a strong sense of community. It's one of the best places to live in New York state, and if you're considering a move to Albany, you're likely wondering about the cost of living.

This comprehensive guide will break down everything you need to know—from renting an apartment to navigating transportation and exploring entertainment options. With this valuable information, you can create a realistic budget and feel confident about making Albany your new home.

What Is the Cost of Living in Albany, NY?

What Is the Cost of Living in Albany, NY?

Compared to New York state, the cost of living in Albany is a lot more affordable, thanks mostly to much lower housing costs. It’s a nice middle ground if you want city living without NYC’s sky-high prices.

What Is the Average Rent in Albany, NY?

Renting in Albany means you’ll spend about $1,763 for a one-bedroom and $2,287 for a two-bedroom apartment. That’s just about on par with the national average and a bargain compared to many other New York hot spots, including New York City. Albany offers the perks of city living without the hefty price tag, making it a great choice for renters who want more space on a budget.

How Much Is a One-Bedroom Apartment in Albany, NY?

One-bedroom rents in Albany vary by neighborhood, from a budget-friendly $1,050 in Sheridan Hollow to around $1,873 in Park South—so there’s something for everyone, no matter the budget or lifestyle.

How Much Is a Two-Bedroom Apartment in Albany, NY?

Two-bedroom apartments in Albany vary widely, from a budget-friendly $1,100 in Pine Hills to a premium of $2,484 in Park South. Neighborhoods like Sheridan Hollow and the Mansion Area land in the middle, giving renters plenty of options to match their lifestyle.

How Much Is Housing in Albany?

Housing in Albany is refreshingly affordable compared to many similarly sized metro areas. While you’ll certainly find higher-end properties in neighborhoods like Park South, the median home price is just $253,100, making it much easier for renters to consider homeownership when the time feels right.

What Salary Do I Need to Live in Albany, NY?

When it comes to figuring out what salary you need to comfortably live in Albany, a good starting point is the 30% rule. Aim to spend no more than 30% of your income on rent. This handy guideline helps keep your budget balanced so you can still enjoy life outside your apartment.

For context, the median household income in Albany is around $59,485, which is slightly below the national average but still provides many residents with a solid foundation for renting or buying. If you want a closer look at what apartments fit your budget, our rent calculator can help you see what’s realistic without stretching your finances.

According to the MIT Living Wage Calculator, a single adult would need to make $23.00 per hour, and a family of four with two working adults would have to earn $30.44 each to remain above the poverty threshold in Albany. These estimates cover basic necessities like housing, food, and healthcare but don’t include extras like travel or savings.

How Much Is Transportation in Albany, NY?

Transportation in Albany comes with a mix of costs and conveniences depending on your household size. According to the MIT Living Wage Calculator, a single adult without children spends about $9,077 per year on car-based transportation, while a family of four with two working adults spends around $15,226 annually.

Albany has a strong driving culture, and while traffic can be busy during peak hours, public transit options exist but are somewhat limited. The city’s walk score is 65, transit score 52, and bike score 55, meaning some neighborhoods—like Center Square—offer better access to buses, rideshares, and amenities within walking distance. For most residents, having a car remains the most practical way to navigate the city efficiently.

How Much Are Groceries in Albany, NY?

Grocery costs in Albany are relatively moderate compared to larger U.S. cities. According to the MIT Living Wage Calculator, an annual grocery budget is estimated at $4,599 for a single adult without children and $13,480 for a family of four with two working adults.

For dining, Albany offers a range of options. An inexpensive meal at a restaurant averages $24, while a three-course meal for two at a midrange restaurant typically costs around $100. Dining out frequently can significantly impact your food budget, so opting for home-cooked meals can be a cost-effective way to reduce it.

How Much Is Child Care in Albany, NY?

Child care costs in Albany can be significant, impacting household budgets considerably. According to the MIT Living Wage Calculator, families in Albany can expect to spend approximately $15,680 annually for one child, which nearly doubles to $30,163 for two children.

It’s important to note that these costs can vary based on the type of care chosen. For instance, center-based care tends to be more expensive than family-based care. Additionally, exploring available subsidies or assistance programs may help alleviate some of the financial burdens associated with child care.

How Much Is Healthcare in Albany, NY?

Healthcare costs in Albany can vary based on household size and specific needs. According to the MIT Living Wage Calculator, a single adult without children can expect to spend approximately $3,658 annually on healthcare, while a family of four with two working adults may incur costs around $10,708 per year. These figures include essential medical expenses, including insurance premiums, out-of-pocket costs, and other health-related expenditures.

How Much Are Utilities in Albany, NY?

Utility costs in Albany are generally affordable compared to larger U.S. cities. Monthly expenses—including electricity, heating, cooling, water, and garbage—average $211.42.

Other monthly expenses also add up, such as a mobile phone plan with 10 gigabytes of data, which averages about $68.00, and internet service, which averages $83.12. These costs are relatively moderate, making Albany a great option for those looking for affordability.

Albany, NY, Fitness and Entertainment

Staying active and entertained in Albany doesn’t have to break the bank. A fitness club membership averages around $38.60 per month, while renting a tennis court for an hour on the weekend costs about $38, and catching a movie at the theaters typically costs about $15 per ticket. Whether you’re into working out, hitting the courts, or enjoying the latest films, Albany has plenty of options to keep your lifestyle fun, active, and affordable.

How Much Are Taxes in Albany, NY?

In Albany, the combined 2025 sales tax rate is 8%, which includes state, county, and city taxes. New York consistently ranks last on the state tax index, thanks to high rates and a complex, often burdensome tax structure. While this means Albany residents may feel the pinch at the checkout, it’s all part of living in a state with robust services and amenities.

Jobs in Albany, NY

Albany’s job market is steady, with an unemployment rate of 3.7%, making it easier for job seekers to find opportunities. The city’s economy is driven by government, leisure and hospitality, education and health services, and professional and business services. Major employers include GE, St. Peter’s Health Partners, Albany Medical Center, Microsoft, IBM, and the state government.

Find Your Next Apartment in Albany, NY

Intrigued by the rental landscape in Albany? Now that you have a better idea of the cost of living, you can start picturing your dream home. Get started on your Albany search with the personalized Apartment List quiz. With us, you’ll spend five minutes and save 50 hours searching.

FAQs: What to Know About the Cost of Living in Albany 2025

What is the minimum wage in Albany, NY?

As of 2025, the minimum wage in Albany is $15.50 per hour, giving entry-level workers a solid starting point. It’s a step up from many other parts of the country, but it would still be difficult to cover all basic necessities, such as food, rent, and transportation.

Is upstate New York expensive?

Compared to New York City, upstate New York—like Albany—is quite affordable. Overall costs are just a bit above the national average, with housing and groceries much cheaper than the state average.

How much do you need to live comfortably in Albany, NY?

According to the MIT Living Wage Calculator, a single adult without children needs about $23.00 per hour to cover basics, while a family of four with two working adults would need about $30.44 per hour each. This covers essentials like housing, food, and healthcare, but not travel or savings.