Apartments.com reveals that some renters drop more than half of their monthly income on rent in these costly areas.
Renting a living space can be expensive. And no neighborhood is more expensive for renters than New York City’s Penn Plaza/Garment District.
Apartments.com has compiled a list of the most expensive neighborhoods for renters. It said rent for a one-bedroom apartment in the Penn Plaza/Garment District averages $4,440 a month. Ouch. Apartments.com said its list has a real-world twist:
To paint a realistic picture of what it costs to live in one of these sought-after neighborhoods, this list examines more than monthly rent. Since experts recommend spending no more than 25 to 30 percent of one’s monthly income on rent, the Apartments.com list evaluates how much of a renter’s paycheck goes toward rent, as well as median monthly household income, overall cost of living and inflation.
Apartments.com found that some renters forked over more than half of their monthly income to live in a desirable neighborhood.
“We’re seeing renters paying a premium to live in the hottest neighborhoods, which goes to show it truly is all about location, location, location,” said Brad Long, president of Apartments.com. “These renters are willing to spend a rather significant portion of their overall income on monthly rent, in order to afford the luxury of living in exclusive areas.”
Nationally, the average cost of rent for a one-bedroom apartment is $939. Consider this when you check out Apartments.com’s list of the 10 most expensive neighborhoods for renters in the U.S.
- New York City, Penn Plaza/Garment District – $4,440 average monthly rent for a one-bedroom apartment.
- New York City, DUMBO (Down Under the Manhattan Bridge Overpass) – $4,023.
- San Francisco, Yerba Buena – $3,643.
- Boston, Government Center – $3,782.
- Oakland/Emeryville, Calif., Golden Gate – $2,695.
- Palo Alto, Calif., Crescent Park – $3,157.
- Great Neck, N.Y. (Nassau County), Great Neck Plaza – $3,223.
- Jersey City, N.J., Historic Downtown – $3,068.
- Newport Beach, Calif., Newport Center – $3,133.
- San Diego, Harborview – $2,206.
Because the rankings include both average rent and the percent of income spent on rent, you may not see some notoriously expensive neighborhoods on the list, most likely because the renters have higher incomes.
If you’re looking to rent an apartment without draining your bank account, click here to see Apartments.com’s list of less expensive rentals in the same vicinity as the pricy rental neighborhoods.
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