New York City remains one of the nation's most expensive places to start or run a business. However, several expenses have growth more slowly than in many competing metropolitan areas over the past decade. While employers continue to face rising costs for energy, health insurance and business taxes, costs such as in private-sector wages, office rents and employee benefits have lagged behind national trends.
Average private-sector wages reached about $129,000 in 2025, among the nation's highest, although inflation-adjusted wage growth was slower than the national average during the past decade. Manhattan continues to have the country's highest office rents, but their price increases have remained relatively modest compared with many competing metropolitan areas.
The findings come from a new report released by State Comptroller Thomas DiNapoli that compares New York City's business costs with those of other major metropolitan areas.
"New York City remains one of the world's premier places to do business because of its unmatched talent, innovation and access to customers," DiNapoli said. "While operating here remains expensive, this report shows that some core business costs have grown more slowly than in many competing regions. Understanding where costs are rising more quickly can help inform policies that support both economic growth and affordability."
While employer spending on benefits, including health insurance, retirement plans and paid leave also remain above the national average, the growth in those costs has been slower than nationwide trends.
The report also found that commercial electricity, natural gas, health insurance and business taxes continue to outpace national averages, adding to the cost of doing business in the city.
Continued efforts to address rising operating costs, alongside recent regulatory reforms, could strengthen the city's long-term competitiveness.
