Finding Affordable Rents in Pricey Cities: A Guide
Whether you're residing in cities like New York or San Francisco, you probably realize that a large chunk of your income goes towards the rent, especially when living alone without roommates. Consequently, many individuals questioning why they couldn't just pack their belongings and move to a cheaper location. But for some, familial or professional ties keep them rooted, making a move either impractical or unnecessary. However, for those stuck in these costly metropolitan areas, expanding their rent budget becomes a priority. So, to help you navigate these expensive real estate markets, I reached out to Andrea Neculae, a Research Analyst at RentCafe. Below, you will discover some expert advice on how to locate reasonably affordable rental properties in cities known for their steep housing prices.
Discover Cost-Effective Rentals in Pricey Cities
Recent research by RentCafe found that the amount of livable space available for around $1,700 per month (approximately the national average rent) in the 50 largest American cities varies greatly. In a quarter of Memphis, you can secure an apartment with almost 2,000 square feet of living space for that price. On the other hand, Manhattan barely provides 200 square feet at the same cost. Andrea Neculae, a Research Analyst at RentCafe, shares her insights on factors that can improve your chances of locating a reasonably priced rental property in cities known for their exorbitant housing expenses.
Embrace the Sweet Spot
While Neculae and her team were examining the data, they found an intriguing pattern showing up on numerous major rental markets: a quarter-circle of zip codes surrounding city centers commonly displayed the best price-to-rent ratio. She explained to Aussiedlerbote, "These attractive offerings can be real jewels without breaking the bank." Unfortunately, venturing too far from the city center may lead to skyrocketing rental costs in districts that exhibit a blend of urban and suburban characteristics. These areas are now favored by millennials in search of urban amenities outside the city limits, according to Neculae.
Relocate Your Home Office to a Coworking Space
Remotely working individuals often require larger spaces with home office facilities, which may prompt them to allocate a more considerable portion of their budget for an additional room. Neculae encourages considering apartments near coworking spaces, as the coworking space membership charges can often be less expensive than shelling out a significant sum of money for a fully-equipped apartment with its own home office. "In metropolises like Chicago and New York, you can save between $9,000 and $20,000 per year by forgoing a guest room," Neculae emphasized.
Explore Transit-Oriented Development
Transit-oriented developments (TODs) are combinations of residential, commercial, and office spaces designed to maximize the use of public transportation and provide convenient access to workplaces and city amenities without the need for private vehicles. According to Neculae, living in TODs can help you save money. She also mentioned that several states have initiatives underway to increase the number of housing developments near transportation links, so it's likely that more of these projects will become available in the future.
Time Your Move to the Fall or Winter
During spring and summer, more people typically search for rental properties, which intensifies competition and reduces the possibilities for negotiations. To enhance your chances of securing an affordable unit with favorable terms, consider looking for rentals during the fall and winter when rental demand tends to be lower, making it easier to find a suitable property and perhaps even negotiate a reduced rent price. Plan your search early in the year, around January or February, to maximize your chances of finding the perfect property at a reasonable price.
Don't Overlook Additional Fees
If a rental listing seems too good to be true, it may be a scam or fail to account for all the various fees that renters are obligated to pay beyond the base rent. Fees like application fees, security deposits, trash removal fees, and pet fees can add up to significant amounts and increase your monthly expenditures.
