New York is facing an affordability crisis that is no longer confined to a single region, income level or household type. Across the state, working families are making difficult choices every day about housing, food, health care, child care and transportation. Increasingly, those choices are not about comfort or convenience, but about basic stability.
Traditional measures of poverty do not fully capture the scope of this challenge. In 2024, 14% of New York households fell below the federal poverty level. But that measure alone misses a much larger group of families who are still struggling.
An additional 34% of households fall into a category known as ALICE, which stands for Asset Limited, Income Constrained, Employed. These households earn above the poverty line but still do not make enough to afford the basic cost of living in their communities.
New York households are in crisis
Combined, 48% of households in New York were below the ALICE threshold in 2024. Nearly half of all households cannot consistently afford the basics. Our families, our friends and our colleagues are likely ALICE households.
Recent ALICE data underscores how narrow the margin is for many working families. The cost of essentials, particularly housing, child care, food, transportation and health care, continues to rise faster than wages in many parts of the state. In fact, the basic cost of living for a single adult in New York is estimated at more than $35,000 a year. That is equivalent to more than what a full-time worker earning $16 an hour would make before taxes, leaving many workers unable to meet basic expenses even with steady employment. Even full-time work is often not enough to cover these basic costs, leaving little room for savings or unexpected expenses.
ALICE households include the child care worker who cannot afford care for their own children, the home health aide choosing between rent and groceries, and the retail employee working multiple jobs while still falling short each month. These are essential workers who keep our communities running, yet they are increasingly priced out of stability.
For many families, one unexpected expense, such as a car repair, a medical bill or a temporary loss of income, can trigger a cascade of financial consequences. What begins as a short-term challenge can quickly escalate into missed rent, utility shutoffs or food insecurity. Too often, families seek help only after they have reached that breaking point.
How New York’s network of nonprofits can respond
But across New York, there is a strong network of nonprofit organizations, community-based partners and government agencies working every day to support individuals and families before a crisis deepens. These systems are designed not only to respond in emergencies, but also to help people stabilize before a crisis deepens.
By dialing 211, texting or searching online, New Yorkers can be connected to local resources for housing support, food assistance, utility relief, mental health services, child care and more. 211 is a confidential statewide information and referral service available 24 hours a day, seven days a week.
211 serves as a front door to what can otherwise feel like a fragmented and difficult-to-navigate system. It connects people to the right resources at the right time, whether that is help covering a heating bill, finding food assistance or accessing child care options. In many cases, that connection can prevent a temporary hardship from becoming a long-term crisis.
As demand continues to grow, it is essential that systems like 211 remain strong, accessible and able to meet the needs of New Yorkers across every region of the state.
The data on ALICE makes clear that financial hardship is not limited to those traditionally defined as living in poverty. It affects working households in every region of the state and across industries and income levels. As costs continue to rise, more families are finding themselves one unexpected expense away from needing help.
This moment calls for a broader understanding of economic hardship and a stronger emphasis on prevention. Support systems must be visible, accessible and responsive before families reach a point of crisis. That means continuing to invest in community-based organizations, strengthening coordination across services and ensuring that tools like 211 are widely known and easy to access.
New Yorkers are resilient. They work hard, support their communities and do everything they can to stay afloat. But resilience alone cannot offset the growing gap between wages and the cost of living.
The opportunity before us is to meet people earlier, with the right support, at the right time. Resources already exist to do this work. The challenge now is making sure every New Yorker knows where to turn before a challenge becomes a crisis.
Because in an affordability crisis this widespread, prevention is essential.
Therese Daly is president and CEO of United Way of New York State and 211 New York.
This article originally appeared on Rockland/Westchester Journal News: NY’s affordability crisis is dire. We have to invest | Opinion
Reporting by Therese Daly, Special to the USA TODAY Network / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
