MW I'm a 31-year-old architect ready to leave Austin. Does moving to San Francisco or NYC make the most financial sense for me?

By Aditi Shrikant

'I'd be moving with my dog, Teddy, and am able to work remotely'

"I previously lived in New York City for about a year and in San Francisco for five and a half years." (Photo subject is a model.)

Dear Dollar Signs,

I'm 31 and currently living in Austin, Texas. I'm looking to move within the next year and I am deciding between San Francisco and New York City. I previously lived in New York City for about a year and in San Francisco for five and a half years. I'd be moving with my dog, Teddy, and am able to work remotely.

I work in architecture so both cities have plenty of professional opportunities. I think the biggest financial factor in San Francisco would be having a car. It's not strictly necessary, but it helps quite a bit and provides better access to the rest of the Bay Area. Public transit there feels more segmented, so traveling to Oakland can take a long time, and getting to outdoor or hiking destinations isn't really feasible without a car.

So on top of rent prices - which I'm finding are similar to or higher than in New York City - I'd also need to account for car expenses like insurance and gas. I also feel like day-to-day expenses, such as coffee and lunch, are more flexible in New York City than in San Francisco. There seem to be more affordable options available in New York.

On the other hand, I think San Francisco would be less stressful for Teddy, since there are neighborhoods that aren't as crowded. Apartments also tend to be more spacious than in New York City. Because I've already spent five and a half years in San Francisco, I'm confident I know what to expect. It's easier for me to imagine returning and settling in quickly.

Which move do you think would make the most sense?

Moving and Shaking

If you're just starting out on your money or career journey and have questions about how to navigate your finances, we want to hear from you. Write to Dollar Signs, MarketWatch's new advice column, at dollarsigns@marketwatch.com.

Dear Moving,

First of all, congratulations on starting this new chapter! The decision to move is never easy.

Let's tackle finances first. I'm curious as to where you're seeing that San Francisco is more expensive than New York City when it comes to rent. Looking at averages, one-bedroom and two-bedroom apartments in New York City are 29% and 15% higher, respectively, than in San Francisco, according to Zillow. (Rent can, of course, vary wildly by neighborhood.) That's a pretty significant jump. However, price isn't the only factor you should be looking at.

If you want to stay in your next city over the long term, it's important to consider housing availability as well, says Jiayi Xu, an economist at Realtor.com. San Francisco's job market might drive apartment prices up pretty fast over the next few years, she says: "For San Francisco, the rent is going to get higher because of the boom in [artificial intelligence]. For New York City, the trend is consistently high." (Realtor.com is operated by News Corp subsidiary Move Inc.; MarketWatch publisher Dow Jones is also a subsidiary of News Corp.)

Even if rent in San Francisco doesn't exceed that in New York City, owning a car will significantly increase your monthly expenses. The average car payment for a new vehicle hovers around $700 and the average insurance payment is $225, according to Bankrate, which means you're looking at an additional $1,000 per month should you choose San Francisco, plus gas. Despite any savings you might see on housing in California, the overall cost of living in both cities could be comparable.

Since you've already lived in all three places, you're likely aware how much more expensive housing is in both San Francisco and New York than in Austin: Rent for a one-bedroom apartment in Austin is approximately 66% lower than in New York City and 64% lower than in San Francisco. It would be wise to create a budget for each location to better understand how much you'd be spending each month.

Be sure to factor in income taxes, too. Texas famously has no state-level income tax, whereas neither New York nor California could be described as a low-tax state.

California has a progressive state income tax that ranges from relatively low percentages up to a marginal rate of about 12.3% for high earners, with an additional 1% surcharge for those earning over $1 million a year. San Francisco does not impose a local income tax. New York state, meanwhile, has a progressive income tax that tops out at around 10.9%, among the highest state taxes in the country. New York City also assesses a local income tax on top of the state tax.

Why are you moving?

You don't say in your letter why you're moving. Do you want a a mild climate and more laid-back lifestyle? Choose San Francisco. Do you want a fast-paced environment? Choose New York.

Before coming to a decision, you should identify three goals for making this change, says Ali Wenzke, author of "The Art of Happy Moving: How to Declutter, Pack, and Start Over While Maintaining Your Sanity and Finding Happiness."

If you want access to more national parks, California is probably a better option. If you want to prioritize seeing more theater, you might prefer New York City.

It seems like familiarity might be the biggest reason you're considering moving back to San Francisco. This isn't totally irrelevant, but I'd urge you to think about why you'd move back after having previously spent almost six years there. What will be different this time around? How have you changed? And how will this city help you accomplish your three goals in a way that Austin won't?

Allocate more money to fun

No matter which city you choose, be sure to spread the word. Tell all your friends and family members about your plans, because "chances are you know someone who knows someone" who lives in New York City or San Francisco, Wenzke says: "Even if the connection doesn't become a close friend, he or she can introduce you to other people in the city. It's easier to arrive in a city knowing one person than to start from scratch."

Manage expectations around how quickly those bonds will form. Don't expect to jump into a tight friend group right away.

"Remind yourself that it takes time to build new connections and that you need to get out there to be building relationships again," Wenzke says. "Leave those boxes unpacked and get out of your home. Join a class, walk to a coffee shop or hang out at the library."

Of course, this will require you to allocate more money toward social activities. Grabbing drinks, going to concerts and taking classes can all help you get to know a city and its people - but those can also stress your budget.

Financially, these two cities are comparable, especially if you plan to have a car in San Francisco. Once you figure out your reasons for moving, you can decide where you believe you'd have a more fulfilling life. Then you can create a detailed budget to make sure you can achieve that.

You have lived in both places, and you stayed in San Francisco far longer than you did in New York. So I have one final question for you before you make your decision: Why did you leave each place? The answer may point you in the right direction.

Write to Dollar Signs at dollarsigns@marketwatch.com.

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-Aditi Shrikant

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April 22, 2026 11:51 ET (15:51 GMT)

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