This 1 state represents half of the 10 most expensive cities to rent or buy in the United States
Housing is probably the largest item in your budget, usually 30% of monthly expenses. And depending on where you live, that percentage could be even higher. In most parts of the United States, low inventory and strong demand are driving up prices.
These 10 cities are where you will pay the most.
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Miami is a flashy city with warm weather, which attracts people from all over the world. This may also be a reason for its high rental and housing costs. In fact, Miami had a median rent of $2,929 for a 0-2 bedroom apartment in February, according to Realtor.com. The report notes that the high price is partly due to an increase in luxury apartments on the market, but high-end rentals can be hard to afford for the average person.
Buyers won’t find many bargains either, as the median selling price of a home in March 2022 was $467,000.
Another area with good weather and beaches is Los Angeles, a city of nearly 4 million people. But with a median rental price of nearly $4,000 for a 0-2 bedroom home in February, according to Realtor.com, the area is becoming more difficult for an average worker to pay rent.
And it’s not just the rent. One of the most shocking home sales in March was that of “The One” in Bel Air. The 105,000 square foot house sold at auction for $141 million, making it the most expensive house sold at auction in the United States
Like Los Angeles, San Diego is warm and sunny, but it may not be as appealing to potential homeowners or renters. The California Association of Realtors found that the median price of a home sold in San Diego was $888,000 in February. This represented a 16.1% increase in median price over the previous year.
If that price keeps you renting, know that the median rent for a two-bedroom apartment in March 2022 was $2,467.
Northern California is home to legendary Silicon Valley, known for its high-paying tech jobs, as well as high housing costs. The median price for all 0-2 bedroom apartments was $3,024, an increase of 14.2% over the previous year. The biggest jump was specifically for two-bedroom apartments, which saw a 14.8% year-over-year increase from February 2021. The median price for an apartment of this size was $3,441 per month, according to Realtor.com.
The median sale price for a three-bedroom home in March 2022 was $1.25 million.
Oakland is another Bay Area city that continues to experience growth in the housing market. The typical value of a home is over $1 million, according to the Zillow Home Value Index. This represents a 15.2% year-over-year increase in home costs.
Pro tip: You might also want to prepare your wallet if you plan to visit Oakland Ballpark A next time you’re in town. In a recent survey of baseball fans and their spending, A fans said they would spend more on average during a game than any other Major League Baseball fan with $133.86 spent per game. .
The nation’s capital is also a leader in housing spending. Economic development in the DC metro area in recent years has made land more expensive, driving up housing prices. The median rent in the DC metro area was $2,078 for 0-2 bedroom apartments in February. New home costs are also expected to rise, as an increase in construction costs pushes new home sales prices higher.
Boston’s high housing costs stem from a lack of inventory in the market, making it harder to find anything affordable as prices rise. The city has also seen an increase in jobs, but not an increase in the availability of housing to keep pace with new residents. The average rent for a one-bedroom apartment in Boston is about $2,525, up 20% from a year ago, according to real estate site Zumper.
Hawaii may be an inviting paradise, but the cost of housing may scare you away. The islands don’t have much room to build new homes on the little land available, which hurts the potential for new developments and crowds out any buyers or tenants looking for affordable housing. The average rent in Honolulu is $1,847, according to RentCafe, with an average apartment size under 600 square feet.
One of the most expensive cities to buy a home in California is San Francisco. If you want to buy a house in the area, expect to pay over a million dollars for a place. The median cost of a home was $1.9 million in February, according to the California Association of Realtors. Do you think renting can be cheaper? Expect to pay around $2,970 for 0-2 bedroom apartments.
And it’s not just house prices that are expensive. In March, San Francisco was the first city in the nation to reach the $5 mark for the average price of gasoline per gallon, according to GasBuddy. So, you might want to avoid working as a rideshare driver in San Francisco if you’re trying to find a good hustle to earn some extra cash in the city.
New York City
New York City has a reputation for being one of the most expensive cities in the world, including rent. The average cost of rent in Manhattan is $4,265 in Manhattan, according to RentCafe. The New York borough of Brooklyn averaged $3,124 in rent per month. City size may contribute to higher housing rates. More than eight million people live in one of New York’s five boroughs. High demand for accommodation in limited space is a driving force behind the high prices.
At the end of the line
Still interested in buying a new home in one of these high cost areas? Check with some of the best mortgage lenders to see what you can afford in an expensive city. And think about other ways to pay high rent. You might want to consider a roommate or find a job that lets you telecommute to save money. When home prices are high, buyers should think about other ways to save money.
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