Paying $1K Per Month for a 1 Bed Apartment? Consider Buying

Inspired by an infographic on Apartments.com, I was considering the cost of renting in some of the first and second tier markets across the U.S. versus buying. The article highlights what $1,000 per month in rent can get you in some of the top U.S. cities. The reality is, not very much. In fact, the article celebrates the fact that you can still get into a one-bedroom apartment in some of the top U.S. cities for a hair less than $1K.

For those who need a 2 or 3 bedroom apartment however, it gets expensive quickly to live in these coveted locations. In this case, why not buy? With entry-level prices of townhomes and single-family homes in surrounding suburbs of the top U.S. cities hovering between $130K to $170K - Why not buy?

Although most renters think they may not have the down payment required for a home loan, consider how much cash is required upfront in a renting scenario. If someone is paying around $2K per month in rent and then paying upfront move-in costs including the first month’s rent, last month’s rent, and a deposit, this could be equivalent to a down payment for a home loan. Curious to see what $1K in rent will get you in the top U.S. markets? Take a look at this interesting infographic on Apartments.com that displays the data they’ve collected on this topic: http://blog.apartments.com/location-location-location-apartmentscom-reveals-what-1000-a-month-will-rent?frontdoor=outbraintm

If you are renting a two or three bedroom apartment in one of the top tier locations in the U.S., consider buying. With apartments seeing their lowest vacancy rates in over a decade, it’s not getting any cheaper to rent.

Posted by Corey Curwick Dutton

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