City life can be glamorous — but it comes with a price.
In a 2016 report, personal-finance site SmartAsset determined how much you need to earn to afford rent in the largest U.S. cities. Spoiler alert: For a handful of these hot spots, you may need to be raking in six figures.
SmartAsset looked at the average cost of renting available two-bedroom apartments in 2016 in each city.
To calculate the gross income required, the site set the rent-to-income ratio at 28%. "Government housing standards say that housing is affordable if it doesn't require a household to spend more than 30% of its income on housing-related expenses including utilities and rent," SmartAsset says in the report. "Therefore, we allowed for households to spend no more than 28% of their income on rent alone."
Read on to see how much you would have to make (before taxes) to afford rent in 10 of the biggest U.S. cities. We also included the percent change of average rents from 2015 to 2016 (provided by SmartAsset) to give you an idea of how much rent is increasing in each city.
Dallas, Texas
Income needed to pay rent: $62,700
Average cost of renting a two-bedroom in 2016: $1,463
Percent change from 2015: 10.2%
Matt Nager | Bloomberg | Getty Images
Philadelphia, Pennsylvania
Income needed to pay rent: $65,100
Average cost of renting a two-bedroom in 2016: $1,519
Percent change from 2015: -0.5%
Jerry Driendl | Getty Images
Chicago, Illinois
Income needed to pay rent: $76,071
Average cost of renting a two-bedroom in 2016: $1,775
Percent change from 2015: 1.7%
Izzet Keribar | Getty Images
Miami, Florida
Income needed to pay rent: $90,300
Average cost of renting a two-bedroom in 2016: $2,107
Percent change from 2015: 8.7%
Scott B. Smith | Getty Images
Seattle, Washington
Income needed to pay rent: $98,271
Average cost of renting a two-bedroom in 2016: $2,293
Percent change from 2015: 7.3%
Mike Kane | Bloomberg | Getty Images
Washington, D.C.
Income needed to pay rent: $119,271
Average cost of renting a two-bedroom in 2016: $2,783
Percent change from 2015: 3.7%
Jon Hicks | Getty Images
Boston, Massachusetts
Income needed to pay rent: $120,900
Average cost of renting a two-bedroom in 2016: $2,821
Percent change from 2015: -0.2%
Jorge Salcedo | Getty Images
Los Angeles, California
Income needed to pay rent: $145,629
Average cost of renting a two-bedroom in 2016: $3,398
Percent change from 2015: 17.1%
Matthew Gush | Stock / 360 | Getty Images
New York, New York
Income needed to pay rent: $158,229
Average cost of renting a two-bedroom in 2016: $3,692
Percent change from 2015: -0.1%
Ryan D. Budhu | Getty Images
San Francisco, California
Income needed to pay rent: $216,129
Average cost of renting a two-bedroom in 2016: $5,043
Percent change from 2015: 7.4%
No comments:
Post a Comment