(Lincoln, Nebraska image by Tim Vrtiska via CC BY-ND 2.0 )
In 1997, when I was a young and hopelessly naïve college student, I dreamed about moving to San Francisco. I had no real-life experience or any understanding of cost of living standards.
Most young people think that they will live forever, stay healthy forever, and can do anything. I reflect in shock as I once believed that I could do this.
One thing I’ve learned as I began working is that the cost of living and standards of living must be considered before you move somewhere. You must factor in your salary, rent or mortgage, cost of living, moving expenses, and other financial factors.
Every year, over 40 million people, about 14% of the population, moves to a new residence once every year.
The Realities of Rent
The average mortgage is about $313,000, so most people rent. Depending on which list of the world’s most expensive apartments you consult, New York City and Los Angeles are more expensive places to live than San Francisco.
However, when it comes to one-bedroom apartment rents, San Francisco is arguably the most expensive city to live in the world.
If you wanted to move to San Francisco, the average one-bedroom rent is over $3,700. The same comparable rent would be $2,900 in New York City. In 1997, if I had tried to move to San Francisco on a student worker’s salary, it would have been a disaster.
Adjusting for inflation, a two-bedroom rent would have cost about $3,000 in today’s money.
The Search for Affordable Rent
If you are in the market for renting a new apartment, you should use the apartment search website Zumper.
I used this resource to research five American cities with one-bedroom to two-bedroom apartments with rent under $600.
Lincoln, Nebraska
Named after the 16th president, his is a city with a small-town spirit. It has stunning, picturesque, big sky vistas. Nebraskans are fanatic sports fans and very supportive of all local college teams, like the University of Nebraska. A one-bedroom here rents from $610 to about $575.
Shreveport, Louisiana
This city is a vital economic center, or a triangle of commerce, between the states of Arkansas, Louisiana, and Texas. Shreveport is also renown for its music scene, casinos and gambling, and its cuisine. You can rent a one-bedroom for $580, or a two-bedroom for $640.
Danville, Illinois
This is smaller-sized city that is very big on local college sports team pride. It has a population of about 31,000. Its located about 140 miles north of Chicago. The average monthly rent here is $574.
Lubbock, Texas
This city of about 250,000 is located 340 miles to the west of Dallas in northern Texas. It is arguably the birthplace of Rock and Roll and of Buddy Holly. You can rent a one-bedroom here for $550.
Fort Wayne, Indiana
This is a bold statement, but you can do your own research on Zumper and comparable websites to confirm – this city is probably the most affordable place to rent in the United State. A one-bedroom or two-bedroom rents for $475 to about $525.
Never Move in a Hurry
Moving at a whim is more suitable behavior for telecommuting workers. It takes time to move if you need a new job, have a family, and need to pay for moving expenses.
Moving to the city of your dreams and being able to realistically afford the cost of living are two different things.
Read More
Make $2,000 Fast Renting Your Home and Properties
5 Benefits of Renting over Buying
5 Easy Steps to Lowering Your Rent During Lease Renewal
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.
