How Much Do You Need to Earn to Rent (and Live Comfortably) in the 10 Most Expensive Areas in the U.S.?

Planning on moving to one of the big cities like New York or San Francisco for work? Be sure to negotiate that salary. That’s because, according to new findings by Moody’s Analytics, you’d need to rake in at least double the average American salary — and sometimes a lot more than that — just to comfortably rent a place in one of these prime spots. 

What’s comfortable, you ask? Well, Moody’s (and many financial gurus) defines that term as spending about 30% of your income — or less — on housing.

And looking at the 10 most expensive areas in the country, that can be tough. In the Big Apple, Apple for instance, you’re looking at an average rent of $4,122. To swing that without breaking a sweat, you’d need to rake in $164,870 a year — three times the average worker’s salary. 

How was that number determined? Simple — by multiplying the rent by 40. In NYC (and many other cities in the US), the 40x rent rule is the standard qualification for a rental apartment; you must make 40 times the rent to be considered. (There can be other requirements, but this is the main one.)

But here’s a glimmer of hope: while rent prices shot up by about 19% during the pandemic, they’ve chilled out a bit lately thanks to a rental construction spree. So, the good news is, prices are kind of holding steady … for now.

Still, let’s face it — keeping housing costs to just 30% of your income is not easy, especially in these major cities. Even considering the fact that a lot of companies adjust salaries to reflect the cost of living, it takes financial savvy to make it work without feeling like you’re always pressed for cash. And even if you can swing the rent, it takes a little more discipline to save money for the future when you’re living in a pricey locale. 

Further reading: Housing Price Increase by Year: Housing Inflation in the U.S.

So we put together some tips to help you earn more money, save more money, and maximize what you’ve got, so you can not just survive, but thrive, in your new digs. Here they are:

1. Hustle for extra cash

Boost your income by finding cool ways to make extra money. Whether it’s a side gig, freelancing, or turning your hobbies into cash, having multiple ways to earn can help you stash away more savings and not rely too much on just one paycheck.

2. Invest like a pro

Learning how to invest isn’t just for financial pros. Get savvy about stocks, real estate, and other investment options. Spreading your money across different investments can be like planting seeds for your future money garden. Just remember to choose investment products that match your goals, and decide how much risk you’re cool with.

3. Take it outside 

If you’re looking to stretch your dollars, living outside the expensive city could be your ticket to saving big. You could snag a bigger place and even get perks like a yard. Plus, things like groceries and gas often cost less outside the city hustle. You might have to commute a bit more, but hey, that just means more time for podcasts or blasting your favorite tunes. And who knows, you might discover some cool hidden gems in your new neighborhood, without a 2-hour wait to get in…

4. Crush that debt

Got debts weighing you down? Kick them to the curb, starting with the ones that charge you the most interest. Paying off high-interest debt frees up more money to do fun stuff, like saving up for that dream trip or buying that productivity-boosting phone that’ll keep you well connected .

5. Milk those work perks

Make sure you’re getting all the good stuff your job offers, like retirement plans and health savings accounts. And if your boss matches your contributions, it’s basically free money. Who doesn’t love free money?

6. Budget like a boss

It’s not as boring as it sounds, promise! Keep tabs on your spending by creating a budget, so you know where your money’s going and where you can tighten up. Then, stash away a little something each month — even if it’s just pocket change — and watch it grow into something awesome.

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