In NYC you don’t need to have a car. Most people probably spend $500 a month or more on a car between the payment, gas, insurance and service. A subway/bus card in NYC is probably $75 a month more or less now.
My grandmother moved from the suburbs to the city in her late 70’s. Her back was having more trouble, and other health problem causing her some discomfort. In NYC her groceries were easily delivered, everything she needed was in close distance, or a bus or cab ride away. She had season tickets to the symphony and he oprah, and was able to get together with friends easily.
People who love the city love it, and it is worth living in smaller quarters to them. I would not want to live check to check in any circumstance. The expenses of living in NY might be out of reach for some people, but it is in reach for a lot of people also, they just have a different lifestyle.