Cost of Living in Albany, NY in 2025

Albany, NY Cost of Living: Quick Takeaways

Housing Costs: Rental prices for a one-bedroom apartment in Albany have grown steadily, reaching approximately $1,350 in 2025.
Transportation Expenses: Public transit fares average $1.50 per ride with monthly passes around $60. Fuel costs are about $3.36 per gallon.
Healthcare Costs: Monthly employer-sponsored health insurance premiums are roughly $140, with Silver plan premiums near $600.
Income Levels: Median household income in Albany for 2025 is approximately $60,000, with a cost of living about 5% higher than the national average.

Albany, the capital city of New York, offers a unique blend of urban amenities and rich history. Assessing its cost of living helps residents and newcomers understand financial expectations.

This article provides an in-depth analysis of living expenses in Albany for 2025, covering housing, utilities, transportation and more.

1. Housing Costs in Albany, NY

Housing is a major factor in Albany's cost of living. Below is a historical look at average rent prices for a one-bedroom apartment:

2010: Approximately $900
2015: Around $1,050
2020: Approximately $1,200
2024: Reached $1,300
2025: Estimated at $1,350

These figures reflect a steady upward trend in rental costs within the city.

2. Homeownership and Real Estate Trends in Albany, NY

For prospective homeowners, housing prices have similarly seen increases over the years:

2010: Median home price was about $173,300
2015: Rose to roughly $186,500
2020: Approximately $213,400
2024: Climbed to $253,100
2025: Projected around $280,000

The real estate market in Albany continues to appreciate, showing healthy growth for buyers and investors alike.

Employers in the hospitality sector looking to hire can benefit from understanding local economic conditions as explained in our hospitality real estate market trends.

3. Transportation Expenses in Albany, NY

Albany offers multiple transportation options:

Public Transit: Standard one-way fare is about $1.50, with monthly passes costing roughly $60.
Fuel Costs: Average gas price is around $3.36 per gallon as of 2025.
Vehicle Maintenance: Annual upkeep typically averages $1,200.

Overall transportation expenses vary based on commuting choices and vehicle usage.

4. Utility Costs in Albany, NY

Monthly expenses for utilities in an average apartment typically include:

Electricity: Approximately $198.98
Internet Services: Around $60.00
Total Utilities: About $258.98 per month

These costs are influenced by household size and consumption habits.

5. Grocery and Food Expenses in Albany, NY

Albany residents generally spend about $350 monthly per person on groceries.

Dining out costs vary:

Casual Meal: Around $15
Mid-Range Restaurant Meal: About $50

Food expenses align with the city's overall cost of living.

If you operate a restaurant or bar in Albany, you might find useful strategies for boosting your staff hiring and retention efforts outlined in restaurant staff hiring.

6. Healthcare Costs in Albany, NY

Healthcare expenditures include insurance premiums and out-of-pocket costs.

Employer-Sponsored Health Insurance: Approximately $140 monthly
Silver Plan Monthly Premium: Around $600

These amounts depend on coverage plans and individual needs.

7. Educational Expenses in Albany, NY

Albany offers a range of schooling options:

Public Schools: Funded by taxes with no direct tuition costs.
Private Schools: Average tuition is about $10,000 annually.
In-State University: Tuition estimated at $7,000 per year.

Families should evaluate options based on preferences and finances.

8. Entertainment and Leisure in Albany, NY

Residents enjoy various entertainment choices with associated costs:

Movie Ticket: Approximately $13.67
Gym Membership: Around $50 monthly
Mid-Range Restaurant Meal: Roughly $50

Annual expenses for entertainment and personal care contribute to quality of life.

9. Taxes and Miscellaneous Fees in Albany, NY

Albany's tax environment includes:

State Income Tax: Ranges from 4% to 8.82%
Sales Tax: Total is approximately 8%
Property Tax Rate: Estimated at 1.5%

These taxes impact both residents and businesses in the area.

10. Childcare and Family Expenses in Albany, NY

Childcare costs are important for families with young children:

Daycare: Approximately $1,000 monthly
After-School Programs: Around $300 monthly
Extracurricular Activities: Estimated $100 monthly

Budgeting for these costs is vital for family financial planning.

11. Clothing and Personal Care in Albany, NY

Personal expenses generally include:

Clothing: Around $100 monthly
Personal Care Products and Services: Approximately $50 monthly

These expenditures vary based on individual lifestyle choices.

12. Insurance Costs in Albany, NY

Insurance premiums contribute significantly to living costs:

Health Insurance: Monthly premium around $600 for Silver plans
Auto Insurance: Average annual premium close to $1,200
Homeowners Insurance: Approximately $1,000 annually
Renters Insurance: Around $200 annually

These costs provide crucial financial protection.

13. Miscellaneous Expenses in Albany, NY

Additional costs impacting overall expenses include:

Entertainment: About $2,400 annually
Personal Care Services: Roughly $600 annually
Miscellaneous Goods and Services: Estimated at $700 annually

These vary widely depending on personal preferences.

14. Income and Salaries in Albany, NY

Median household income levels offer insight into earning capacity:

2010: About $45,500
2015: Roughly $52,583
2020: Approximately $54,736
2023: Around $59,485
2025: Estimated at $60,000

Income trends have grown steadily in line with regional economic conditions.

For professionals seeking hospitality positions such as bartenders or servers in Albany, understanding salary expectations can be critical; see top paying restaurant jobs for more details.

15. Comparison with National Averages

Comparing Albany's expenses with national figures highlights affordability:

Overall Cost of Living: About 5% higher than the U.S. average
Housing: Roughly 4% above national levels
Utilities: Approximately 2% lower than average
Food: Around 3% higher
Healthcare: About 2% lower
Transportation: Roughly 4% higher
Goods & Services: 10% above the national average

These differences provide context for budgeting and lifestyle choices in Albany.

Our Methodology for Albany Cost of Living Figures

To compile cost of living data for Albany, we utilize multiple reliable sources, including government databases, market research platforms and statistical services. When exact data is unavailable, careful estimation methods are applied to ensure accuracy.

Albany Cost of Living: Conclusion

The cost of living in Albany, NY in 2025 reflects a moderate increase across many categories such as housing, transportation and groceries. While certain expenses like utilities and healthcare remain slightly below national averages, others are somewhat higher.

Income levels have risen steadily, though the overall cost remains above the average U.S. city, requiring thoughtful planning for those residing or relocating here. Understanding these detailed components helps individuals manage finances effectively within Albany's living environment.

Employers and hospitality professionals may also benefit from reading about how to hire a restaurant manager to build strong teams in their establishments.