The cost of living in NYC continues to rise, even as salaries, bonuses, and job prospects continue to decline.
Con Edison had estimated that the $819 million rate increase, requested in September, would mean that a typical residential bill for a customer using 300 kilowatt-hours of electricity per month would increase by 9.6 percent, or $7.79, to $86.69 from $78.90. (New York Times)
Mayor Michael R. Bloomberg’s $1.2 billion property tax increase won approval from the City Council on Thursday, raising homeowners’ bills by 7 percent as the city grapples with a worsening economy and disappearing revenue. (New York Times)
It would be interesting to analyze immigration and emigration in this context. My hypothesis, the cost of living in NYC is a lagging indicator of population growth. Specificlaly, as immigration into NYC increases, the cost of living increases. Once an external shock occurs, and emigration begins (as it is now), the cost of living continues to increase for a time, exacerbating this emigration. Over time, the cost of living decreases to the point at which it once again makes it palpable for people to move back into the city (even with reduced services). At that point, immigration, and the cycle, begins again.