Introduction

In 2021, we released the previous Overlooked and Undercounted report, which measured the economic security of New Yorkers before the onset of COVID-19. Two years later, utilizing the 2023 New York City True Cost of Living and the most recent 2021 1-Year American Community Survey, we can now document the pandemic’s profound economic impact on New York City households. We find that 50% of working-age households do not have incomes that cover basic needs, such as housing, food, health care, and transportation.

This report provides insights into the “overlooked and undercounted” populations in New York City, highlighting the families that struggle to make ends meet. The analysis is based primarily on the New York City True Cost of Living (NYC TCL), previously known as the New York City Self-Sufficiency Standard, which is a realistic measure of income adequacy specific to family composition and geographic location, and thus a more accurate alternative to the federal poverty measure. Since many federal and state programs recognize need only among those with incomes below the Official Poverty Measure (OPM), a large and diverse group of families experiencing economic distress are routinely overlooked and undercounted

Using the most recent data available in the 2021 American Community Survey, this report documents the families struggling to make ends meet. The TCL measures how much income is needed to meet families’ basic needs at a minimally adequate level, including the essential costs of working, but without any public or private assistance. Once these costs are calculated, we apply the TCL benchmarks to determine how many—and which— households lack enough to cover the basics. Unlike the Official Poverty Measure, the TCL is varied both by family composition and geographically, reflecting the higher costs facing families (especially child care for families with young children) and the geographic diversity of costs across New York City.

What emerges is a detailed picture of those in New York City who struggle to cover the cost of basic needs, where they live, and the characteristics of their households. With this information, our findings and conclusions can inform and guide the creation of policies that promote and support the economic security and well-being of all New York City households and help ensure an equitable future for all.

The report addresses several questions:

• How many individuals and families in New York City are working yet unable to meet their basic needs?

• Which communities in New York City struggle most with high costs of basic needs exceeding their income? What are the characteristics of these households, including educational and employment patterns?

• What are the implications of these findings for policymakers, employers, educators, and service providers?

We find that New York City families struggling to make ends meet are neither a small nor a marginal group, but rather represent a substantial proportion of households in the state. Overall, using the NYC TCL and applying it to working-age households (excluding individuals over 65 and those with work limiting disabilities), we found one half of households (50%) lack sufficient income to meet the minimum cost of living in New York City.