Living in the big city is not cheap. In fact, they’re some of the most expensive places to live in the country right now.
If you’ve got your sights set on a big city and an urban lifestyle, then it’s time to get researching. Each of the country’s largest cities has its own unique pros and cons when it comes to cost of living and housing options. The trick is knowing how to find them before you even set foot inside each city.
The first step is learning about all the different variables so that you can make informed decisions, no matter which city you choose to move to.
Understanding the rising costs of living in big cities
The first thing you’ll want to explore is the rising costs of living in big cities. This is because understanding this phenomenon will help you better evaluate the data related to each city. After all, you can’t know how to budget for a city if you don’t understand what’s driving the costs of living up in the first place.
When taking a look at rising costs of living in big cities, keep some things in mind. Cost of living is often tied to wages in each area, so if incomes are high, then the cost of living is likely high.
The second thing to keep in mind when exploring rising costs of living in big cities is that each city likely has its own unique factors at play. For instance, some of the best neighborhoods in Houston can be the most costly to live in.
Identifying those factors will help you to better evaluate each city and determine which one is best for you.
Buying vs renting in a big city
Another important thing to keep in mind when budgeting and planning for a move to a big city is whether you’re better off renting or buying a home. Would you benefit more from renting an apartment, or perhaps purchasing a luxury condo?
Renting can be much cheaper than buying, although rent prices are at an all time high as well. Also, the availability (or lack thereof) of rental housing in major cities is a factor to consider.
In certain cities, such as New York City and San Francisco, rental housing is extremely limited, which drives up the cost of renting even more. By contrast, in cities like Detroit and Cleveland, rental housing is plentiful and much more affordable.
Another factor to consider when deciding whether to rent or buy is the additional costs you may incur. These could include application fees, deposits, or background check fees when renting. If you’re thinking of purchasing your new home, there may be costs involved with a condo or homeowners association.
That’s not to say that renting will be cheap in any city. Rather, it’s just that renting may be more affordable in some cities than others.
Transportation in a big city
Another big city expense to keep in mind is transportation. Simply put, if you plan to own a car, then you may have to pay a much higher transportation bill than you would in a smaller city. Of course this will vary from city to city.
In fact, car insurance rates in major cities are so high, it might actually be more cost-effective to take taxis or use ridesharing services everywhere than to own a car.
In major cities such as Chicago, Houston, and Atlanta, public transportation is so comprehensive and convenient that it’s often best to just use that. Especially after factoring in the cost of parking in some cities.
Each city has its own nuances when it comes to transportation, so it’s important to do your research to be sure you’re getting the most out of your commute.
Food and groceries in a big city
The next big city expense to keep in mind is groceries and food. Sure, you could eat out at fancy restaurants every night if you wanted to, but that would be a costly and unhealthy habit.
Instead, focus on buying groceries and preparing your own meals. A little bit of planning can go a long way here, as you can buy bulk items to save money, shop at discount grocery stores, and meal prep to limit the number of times per week that you’re actually cooking.
If you’re living alone and trying to keep your food costs as low as possible, there are a few things you can do. Learn to cook multiple dishes at once. You can also make use of leftovers that are already prepared. Focus on buying groceries that are healthy but are also inexpensive.
Tap into your network
Finally, when trying to navigate the cost of living in a big city, be sure to tap into your network. If you used a realtor to rent or buy your home, they will usually have invaluable information about the area. These people can help you to navigate the city, find deals, and get advice on things like where to shop and what restaurants are worth your time.
With a little bit of planning, you can find the right balance between cost of living and quality of life in any city. All you have to do is be aware of the expenses you’ll face and then do your best to budget for them.