In accordance with generally accepted financial rule, each month you should spend on housing, whether rent or mortgage, not more than 30% of their income before taxes. The Federal government considers anyone who pays more “burdened cost” and the term fits most of the inhabitants of large cities, says Grow.
Although in some cities, renting can cost you much cheaper.
To find the major cities in America with the most affordable rents, Grow used a recent analysis of the average price of rental housing in the 50 largest cities of the country conducted by RentCafé. Compared to the rental costs with the average family income in each city, based on a survey conducted by the census Bureau in 2018, these figures are adjusted for inflation for 2019.
Data is based on single people living in Studio apartments, as well as couples, families, living together in large rooms.
Average rent is less than 30% of the average income of residents, only six of the 50 largest U.S. cities. This means that the average tenant will be able to spend 30% of their income or less on housing each month.
Major cities in which the most profitable to rent an apartment:
The average household income of tenants in 2019: $36 051
The average rent in 2019: $709 (23.6% of monthly income)
The average household income of tenants in 2019: $32 643
The average rent in 2019: $665 (24.4% of monthly income)
Oklahoma City, Oklahoma
The average household income of tenants in 2019: $37 887
The average rent in 2019: $782 (24.8% of monthly income)
Virginia Beach, VA
The average household income of tenants in 2019: $56 281
The average rent in 2019: $1 221 (26% of monthly income)
The average household income of tenants in 2019: $41 180
The average rent in 2019: $941 (27.4% of monthly income)
The average household income of tenants in 2019: $39 458
The average rent in 2019: 934 dollar (28,4% of monthly income)
There are cities where the rent of housing is very high. The average rent in Miami, Los Angeles and Auckland is more than 60% of the average income of the tenant. This ratio is more than 70% for Manhattan and Brooklyn. In Boston, which tops the list of most expensive cities in America for housing, average rent is a whopping 79%.
Because of the “side effect” the cost of rent may increase
Cities included in this list, is less prone to “side-effect” that occurs when in large cities it is impossible to rent housing, and all the people heading to a nearby small town, in consequence of which it also rises the cost of renting.
Oakland and Sacramento are great examples of a “side effect,” said research analyst, and specialist in real estate in RentCafé Irina Magnifier. The inhabitants of both cities to work in San Francisco and Silicon valley. Rent in Auckland more than doubled in the period from 2010 to 2019, outperforming all other cities for which data was available.
“Incomes lag behind rents and housing prices in cities that are growing rapidly or have been affected by side effect, says Loupe. — If in a big city with a rapidly growing population, shortly to begin construction of new houses, then rent prices will rise”.
Luxury apartments and “rental choice” to raise prices
In the last decade has seen a massive boom in construction of apartments, most of which were aimed at rich people. According RentCafé, 40% of 2.4 million apartments built recently, are upscale. This coincided with the increase in “rent choice”. According RentCafé, the number of high-yield households earning more than $150 million per year over the past decade has doubled.
These trends have led to higher rents, which now occupies a large part of the income of the tenant. For example, in Phoenix since 2010, rents have increased by 71%, while rental income increased a little less than half. At the same time in the Phoenix area there are more luxury apartments than naukowych.
Magnifier notes that in cities with affordable rents a large part of the available apartments left in the hands of the inhabitants of lower and middle class.
“It’s a matter of supply and demand, she says. — If the apartment market can keep pace with the needs of the tenants, we are much more likely to see housing with low rental value.”
For a comfortable stay in the city, low-rent enough. In addition to low rent the city has to offer as well and a decent income.
Virginia beach is the only city in the list Grow, where the typical renter spends more than $1,000 a month. It is almost twice more than spending renters in Tulsa.
Tenants in Virginia beach also spend about the same amount of money every month as tenants in Milwaukee. The difference is that in Milwaukee, a typical renter spends 46% of their income on rent, which is almost twice more than a typical resident of Virginia beach.
“If you look at the statistics on housing prices, would you say that Rochester and Buffalo are more affordable to live in. The average rent is quite low,” says CEA weaver, the coordinator of the campaign to protect affordable housing from the new York advocacy group. — “The essence of these cities is that the average income is also very low. And in many ways, Rochester is just as unavailable as new York.”
The data confirm this. The average rent in Rochester $1 052 accounting for 49% of middle income, making it only slightly lower than in Queens, where the average rent in the amount of $2 569 eats up 54% of the average income of the tenant.
For many years Rochester was a major city for American industry arts, but then began to decline. Bausch&Lomb left here in 2014. In 2018 Xerox moved its last employees out of the city. Employees of Kodak in this town is now much smaller than it was before the advent of digital photography. Like many other small towns, where leading companies go, Rochester’s not enough money in the budget to help a sufficient number of homeless or affordable housing.
Cities like Wichita and Omaha has reached a good balance, offering as a well-paid job, and the rent which the workers can usually afford. Koch Industries, the second largest private company in America, located in Wichita, who takes the 3rd place in our list of the best cities where Millennials can buy or rent housing. Omaha also required a hit in this ranking is Berkshire Hathaway, the fifth largest company in the world.
It is not always easy to predict what these cities and others like them, will in the long run. Any place that is too dependent on one company or industry is at risk if this large employer decides to leave. But until the city can offer good jobs and affordable housing market, it will remain comfortable for living.