If your salary is $5,000; you get about $3,000 to $3,500 in pocket after taxes, health insurance, social security and other deductions.
I live quite far from NYC in White Plains, rent for 1 bedroom apartment here is $2400.
PS. I am sure there are people surviving for $500 a month in NYC, but that is not the lifestyle most developers desire when they have job offers for $80,000 to $120,000. In fact, most developers I've met say they want to make $10,000 per month to quit their job.
$2k/month is $24,000/year, at which income the IRS does not take nearly as much. According to the IRS calculator, he would be paying $1,628 in income tax. Add in payroll tax and that's $3308 total. So his after-tax income is not far off from $2k at $1724/month.
Assuming he has roommates, his rent and other fixed costs will be less than $1k, so he will be ok, if rather Bohemian.
I mean spending $2k/month on everything, not living on a $2k gross salary. Plenty of people in less-well-compensated industries do that, though— it just means more compromises in terms of living arrangement or commute or neighborhood safety or ...
While I agree with your initial numbers, you can get a decent apartment in White Plains around $1700 (or less if you find a deal, have lower standards, don't mind commuting, etc.).
Source: used to live/work there and just checked on craigslist.
I live quite far from NYC in White Plains, rent for 1 bedroom apartment here is $2400.
PS. I am sure there are people surviving for $500 a month in NYC, but that is not the lifestyle most developers desire when they have job offers for $80,000 to $120,000. In fact, most developers I've met say they want to make $10,000 per month to quit their job.