Are you looking for an apartment and that too in an affordable range? Many of us know that it’s hard to find an apartment in a reasonable range. Home is a place where you feel accomplished, fulfilled, and happy. But it involves a whole process, and you need proper guidance to move in the right direction. Online means have taken the place of all material things. For instance, invoice generation has taken the place of paper receipts, and digital websites have taken over real estate shops. But it would help if you consider that the USA market is full of competition. So, let’s start learning about this competitive market:
Key points to consider before buying/renting an apartment in the USA:
If we look at the stats, an average American spends up to $1.6 million on things like food, shelter, and transportation. It means that 1/3rd of earning goes towards housing costs. But geography is one of the main things that play a crucial role in deciding housing costs. Apart from this, before renting out an apartment, here are the following questions that you need to ask:
- How much rent can you afford?
- What is the rent amount that you can afford?
- Whether you are moving out of state or not?
- How much is the new place going to cost you?
Apart from this, there are many other hidden costs, and it’s vital to get information about that. So, know how much rent fluctuates from state to state.
Factors to consider before renting out in the USA:
According to the stats, it’s easy to rent out your property to others during peak seasons. Apart from this, September is the best time to locate a tenant. But consider that the number may vary, and it entirely depends on the city to city. So, here are primary factors that you shouldn’t ignore while searching for a property in the USA:
Long term costs:
If you are buying/renting out a property, then you shouldn’t ignore financial obligations. According to the USA studies and surveys, the long-term cost includes everything from utilities to regular grocery items. Thus, here is the list of items:
|Electricity bills||Gas||Internet & cable|
|Cell phone service||Water & trash expenses||Groceries|
But you need to understand that inflation may change the living cost. So, it’s essential to make a budget before making an actual decision on apartment hunting.
If you are in the US, then having future amenities is of utmost importance. So, set aside a specific amount for buying facilities for home. Thus, when you are finding an apartment, then see the facilities that the apartment already has. Here are the following types of facilities that you shouldn’t overlook while hunting for an apartment.
|Private balcony||Fitness center||Grills|
|Fire pits||Playgrounds||Additional storage|
|New appliances||Dishwasher||Walk-in closet|
Apart from this, don’t forget to get an apartment that offers parking and other services. It’s difficult to find an apartment with good facilities in the USA. So, the whole process could be hectic, that’s why you must prepare yourself beforehand.
What is the average cost of an apartment in the USA?
Housing costs may vary according to the state where you choose to live. Apart from this, there are other factors due to which prices are increasing. In previous years, the USA market saw a surge in demand for house rentals. So, by critically looking at all points, it is evident that renting a home is more profitable than buying. Here are the average monthly costs in the USA:
Average monthly rent in the USA:
“On average, the monthly rent for a one-bedroom apartment in 2020 was around $1098/month.”
According to February 2021, the average monthly rent of a USA home was around $1124. But later, the number of apartments increased over time. In addition to this, the market saw a decline in February 2020.
Most expensive apartments in the USA:
Earlier, we discussed that the cost of apartments varies according to the state where you are living. For instance, if you want a two-bedroom apartment in California, you will have to earn up to $37 per hour. But this cost is double the wage rate that is circulating in North Carolina and Arkansas. If we look at the price change, then from 2020-2021, the market saw a price drop. For instance, Columbia saw a decline in prices up to 13%, and California saw a slide that is up to 5%. The rent of apartments decreased in the following states:
The market saw a decline in rent prices due to COVID-19. Large cities like San Francisco saw a significant price drop.
Rent in different states:
If a state has low rent, then the cost of living would be minimum. So, here is the list of rent prices in all central states of the USA:
|State name||Average monthly rent|
But Los Angeles is the most expensive city that has an average rent of $2600. On the other hand, West Virginia is the cheapest state with an average rent of $800. Apart from this, there is a direct relation between rent prices and education level. For instance, associate lawyers and other degree holder professions pay the least amount in rent.
Which one is better? Buying or renting a home:
For some people, it’s hard to decide which option is good. For instance, whether they should buy or rent a home. Both options come with pros and cons. So, before making a final decision, there are many factors that you shouldn’t overlook. For instance, the first thing you should consider is the paycheck that you can check through the contractor pay stub. Apart from this, here are the following pros and cons that you shouldn’t ignore:
|Pros of renting||Cons of renting|
|More flexibility||Rent can increase anytime|
|You don’t have a responsibility to maintain the area||You can’t make any changes without the landlord’s approval|
|It is a cheaper option||Few houses come with a no pet policy|
|The best option if you are a frequent traveler||You are bound to obey rules|
But if you want to buy a home instead of renting, then the pros of renting could turn into cons and vice versa. So, before making any housing decision, it’s better to get detailed information. But the best decision is one that you take after considering your requirements, monthly income, and housing needs. If you think it’s time to settle down, it’s better to buy a home instead of renting. But if you aren’t sure about your career choices, renting a property is a good option.