{"id":368,"date":"2022-03-23T17:46:22","date_gmt":"2022-03-23T17:46:22","guid":{"rendered":"https:\/\/compoundingstacks.com\/?p=368"},"modified":"2022-04-04T15:04:19","modified_gmt":"2022-04-04T15:04:19","slug":"how-do-you-budget-for-rent","status":"publish","type":"post","link":"https:\/\/compoundingstacks.com\/how-do-you-budget-for-rent\/","title":{"rendered":"How Do You Budget For Rent?"},"content":{"rendered":"\n
How much should I budget for rent each month?<\/p>\n\n\n\n
The cost of living has increased dramatically over the last decade. In addition to rising rents, the average American now spends $1,500 per month on food alone. <\/p>\n\n\n\n
This means, for a lot of Americans, that even if you save every penny you earn, you won\u2019t be able to afford a home without a significant amount of debt.<\/p>\n\n\n\n
Renting vs buying is a common dilemma faced by millennials. If you don\u2019t want to or can’t afford to spend thousands of dollars on a down payment, renting might seem like the only option. <\/p>\n\n\n\n
But before you decide to rent, you still need to work out a budget, and this is what this article is here to help you with. <\/p>\n\n\n\n
We tell you everything you need to know about renting and the financial impact it can have on you, as well as give you tips on how to budget. Let’s jump in.<\/p>\n\n\n\n
The amount you spend on rent will differ state by state. Some of the most expensive cities to rent in include New York City, San Francisco, Los Angeles, Washington D.C., and Boston.<\/p>\n\n\n\n
In 2022, the District of Columbia has the most expensive average rent in the US, at around $2,324 a month for an apartment with only one bedroom. <\/p>\n\n\n\n
In Massachusetts, you will be paying around $1,995 a month, and in California, this will be around $1,777 a month. <\/p>\n\n\n\n
New Jersey and Hawaii are also included in the top five rents. Rent is usually a lot higher in states with people earning much higher incomes. <\/p>\n\n\n\n
Each of the five states with the highest rent prices is among the highest-earning states in the country. <\/p>\n\n\n\n
For example, Massachusetts’s average household income is around $81,215, California’s is $75,235, Hawaii’s is $81,275, and New Jersey’s is $82,545.<\/p>\n\n\n\n
If you are looking for the states with the cheapest rent prices, these include West Virginia at $628 a month, followed by Montana and Oklahoma. <\/p>\n\n\n\n
Wyoming and Kansas are also among the cheapest, but prices start to rise above $700 here. These states however also have lower household incomes. <\/p>\n\n\n\n