Hire costs are skyrocketing in these 5 cities. Issues to know earlier than transferring home

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When interest rates rise and property values ​​increase prevent more families from buying housesRental demand skyrocketed, with rents highest in the sunniest states.

Single-family rents increased in the first half of 2022, reaching a national average of $2,495 a month – up 13.4% year-on-year, according to the report. a new report from the nationwide real estate brokerage HouseCanary.

While cities in warmer climates like California and Florida dominate the list of the highest median rents, midwestern states like Ohio take the top spot for most affordable rents, the report said. report shows.

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The findings come as more Americans, including some people who earn six figuresto be living wages to pay wages in the face of rising costs.

Annual inflation rose 9.1% in Juneis growing at its fastest rate since late 1981, according to the US Department of Labor.

5 US cities with the most expensive monthly rent

These US urban real estate markets have the highest median monthly rents per family in the first half of 2022:

  1. Los Angeles; Long Beach, California; Anaheim, California: $4,664
  2. City of San Diego; Carlsbad, California: $4,617
  3. Bridgeport, Connecticut; Stamford, Connecticut; Norwalk, Connecticut: $4,352
  4. San Jose, California; Sunnyvale, California; Santa Clara, California: $4,294
  5. Oxnard, California; Thousand Oaks, California; Ventura, California: $4,259

5 US megacities with cheapest monthly rent

These U.S. urban real estate markets had the cheapest median monthly rent for a single family in the first half of 2022.

  1. Cellular, Alabama: $1,419
  2. Dayton, Ohio; Kettle, Ohio: $1,412
  3. Wichita, Kansas: $1,397
  4. Akron, Ohio: $1,361
  5. Canton, Ohio; Massillon, Ohio: $1,314

Remote working may hinder salary increase

The pandemic has fueled a trend away from expensive coastal cities for more affordable areas as more and more Americans switch to working remotely.

And a record number of home buyers in the US are still eyeing cheaper options from cities like San Francisco, Los Angeles and New York, according to a report. July report from Redfin. However, working remotely can come with a hidden cost.

While many people already enjoy the perks of remote work, research shows it can stifle wage growth over time, by a work paper published by the National Bureau of Economic Research.

There may be other ‘hidden’ costs of moving

While moving to a cheaper area can reduce rent or mortgage, other unexpected expenses can hurt your budget, experts say.

“Losing your network or your village is a huge expense,” said certified financial planner Bill Parrott, president and chief executive officer of Parrott Wealth Management in Austin, Texas.

Losing your life or village is a big expense.

Bill Parrott

President and CEO of Parrott Wealth Management

Without access to friends and family, costs like babysitting, pet care and more can add up quickly, he said.

And travel can be more expensive from a smaller city, depending on your choice of airport or transportation, says Caleb Pepperday, CFP and Pittsburgh-based wealth advisor at JFS Wealth Advisors .

“It’s best to research some of these costs before moving to a new city to help you make a decision,” he says.

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