Some say that a solution to the financial headaches caused by buying homes is to opt to rent instead. But according to many of the sources we’ve found, renting might not really be a solution.
On Aug 1, 2018, there was a report stating that renting in Baltimore is getting more expensive and rising faster than national prices.
In the article written by Carley Milligan, digital editor at the Baltimore Business Journal, she pointed out that there is an increase in the rental rates in Baltimore.
Rent in Baltimore is more expensive than the national average — and rates are climbing
A new study shows that Charm City is the 22nd most expensive city in the U.S. to rent an apartment.
The report by apartment search website Zumper showed a one-bedroom unit in Baltimore right now costs a median of $1,380 and a two-bedroom unit goes for around $1,670. That’s about $170 more expensive than most cities in the U.S., and about $460 more for a two-bedroom unit.
Baltimore’s August rental rates are up 3.8 percent and 3.7 percent over last month in one- and two-bedroom apartments, respectively.
The high prices put Charm City at No. 22 on a list of 100 cities ranked by the median cost of rent in each.
Year-over-year, the report found median rental rates in Baltimore jumped 3 percent for one-bedroom units and a whopping 15.2 percent for two-bedroom units. See full story here..
So, how much do you really need to comfortably afford rent?
In a list made by Smart Asset Mortgage, Retirement and Budget Expert Derek Miller, they presented data on how much is needed for a two-bedroom apartment in 25 cities across the US. The study determined how much money you need to make to spend no more than 28% of your annual income on rent. The results show that renters need to earn more than $100,000 in seven cities.
The Income Needed to Pay Rent in the Largest U.S. Cities – 2018 Edition
Key Findings
Renting in California’s largest cities is unaffordable – There are four California cities on the list of the nation’s largest 25 cities. All four of them rank in the 10 places where you need the most income to afford rent. In San Francisco, Los Angeles and San Jose in particular, rent is expensive. The least expensive of these cities in L.A., but we estimate that you’d still need an income of $123,300 to comfortably afford a two-bedroom apartment there.
Charlotte offers good value – According to our analysis, in order to afford the average two-bedroom apartment in Charlotte, you need to earn $50,400 per year. The median household income in Charlotte is $61,000, meaning the majority of households can afford a two-bedroom apartment. In total there are 10 cities on our list where the average household can afford to rent the average two-bedroom apartment.
Place Average 2-bedroom rent Annual income needed 25. Memphis, Tennessee $769 $32,957 24. El Paso, Texas $773 $33,129 23. Indianapolis, Indiana $852 $36,514 23. Indianapolis, Indiana $852 $36,514 22. Columbus, Ohio $917 $39,300 21. Phoenix, Arizona $1,040 $44,571 20. Jacksonville, Florida $1,058 $45,343 19. San Antonio, Texas $1,085 $46,500 18. Fort Worth, Texas $1,124 $48,171 17. Detroit, Michigan $1,135 $48,643 16. Charlotte, North Carolina $1,175 $50,357 15. Houston, Texas $1,205 $51,643 14. Dallas, Texas $1,324 $56,743 13. Nashville, Tennessee $1,338 $57,343 12. Austin, Texas $1,431 $61,329 11. Philadelphia, Pennsylvania $1,672 $71,657 10. Denver, Colorado $1,720 $73,714 9. San Diego, California $2,207 $94,586 8. Seattle, Washington $2,245 $96,214 7. Chicago, Illinois $2,381 $102,043 6. Washington, DC $2,527 $108,300 5. Los Angeles, California $2,773 $118,843 4. San Jose, California $2,878 $123,343 3. Boston, Massachusetts $3,356 $143,829 2. New York, New York $3,789 $162,386 1. San Francisco, California $4,382 $187,800
Even apartment hunting has its hardships. In a survey made by Hunt, a company offering apartment-finding services through their website and mobile app, they showed the difficulties of finding apartments to rent.
The Struggles of Apartment Hunting in America Today
110 million Americans, representing 35 percent of the population, live in rented accommodations1 – the highest proportion since 1965.2 Millions among them are actively hunting for a new place to call home, but the search for a perfect place isn’t always straightforward.
We surveyed over 1,300 renters to uncover the stressful truth of renting in America today, from avoiding scammers to accommodating pets and coping with rent hikes.
- One-quarter of apartment hunters said avoiding scammers was a significant issue.
- Housing issues are the main reason for animal euthanizations among renters – 29 percent said they were unable to find a pet-friendly building.
- 41 percent of renters would move if their rent was increased by $50 per month.
- 78 percent of people with debt from medical bills feel stressed by rent payments, compared to 37 percent of debt-free renters.
- 61 percent of renters would work five additional hours per week to stop the stress of monthly rent payments – 14 percent would go without sex for one year.
See full story here..
These are the things that you have to deal with when it comes to renting properties. If you don’t want to deal with these issues, another option may be to simply buy a house. If it’s within your budget, it will be a lot easier to just buy a house. If you need help with this, you can count on AE Home Group to help you find a house in Baltimore, MD and surrounding areas. Go here to find out more: https://www.aehomegroup.com/maryland/baltimore/