- You will probably pay through your nose for rent in these cities
- But renting is still cheaper than buying in most
It is tough being a young professional nowadays. It is a real challenge to juggle your finances between housing, commute, student loan repayments, socializing with friends and if you are lucky, a bit of traveling. What’s more, if you are a young professional looking to buy a home, it can be a tall order. We analyzed some the fave neighborhoods for young professionals in five of the most popular cities across the US, and found that renting is actually cheaper than buying in most, once you add up the major expense categories like interests payments, property taxes, and insurance. For simplicity’s sake, we did not included tax benefits and wear and tear of your property, which can vary widely for each person and property.
Old West Austin neighborhood in Austin, TX
Enjoying the
night life, diverse culture, and zero state taxes in Austin? Totally love the
warm weather and saving a ton of cash cuz you don’t need a winter wardrobe? Well
apparently so does everyone else on this planet. Austin is one of the fastest
growing metropolitan area in the US. Population in Travis County, which is part
of Austin, grew 6.3% between 2017 to 2021, well above the US population growth
of 2.1% over the same period.
The historic
district of Old West Austin a favorite neighborhood among young professionals. Realtor.com’s
data indicate renting an apartment there would set you back $3,300 a month in
the Old West Austin neighborhood. Sounds steep, until you consider how much it
costs to buy. Buying a property in the Old West Austin neighborhood would costs
a cool $883,000, the median listing price the zip code’s listing price
according to Realtor.com. ApexaVision’s real estate dashboard estimates
interests, property tax, and insurance would costs you $5,661 per month. On top
of that, you will have to cough up another $628 per month for your principal
payment if you do a typical 20% down payment for a 30-year mortgage, which
means a total cash outflow of $6,289 each month. Ouch.
See ApexaVision.com’s free real estate dashboard for more analysis on home price trends, rental trends, income trends, and population trends.
Buckhead Village neighborhood in Atlanta, GA
Known as the
Hollywood of the South, the city of Atlanta offers lush landscapes, warm
weather, reasonable costs of living, and a diverse night life scenery. Atlanta
has been a magnet for young professionals in the past decade. Metro Atlanta
boost a population of nearly 6 million and is often ranked as one of the best
places to live in the US.
One of the best
neighborhood for young professionals to dwell is Buckhead Village, which offers
plenty of casual and fine dining, outdoor cafes, rooftop bars and accessible
parks. Besides amazing food, Buckhead Village also offers some of the best
shopping in Atlanta. In short, Buckhead Village has everything a young
professional need to enjoy the urban lifestyle. However, all of this comes with
a price tag. While the neighborhood retains its appeal for long-term real
estate investments, renting is cheaper than buying, especially if you don’t
plan to stay for the long-term.
MONTROSE NEIGHBORHOOD IN HOUSTON, TX
The city of
Houston has seen strong job growth in the past few years. What’s more, Houston
is a vibrant town that has much to offer. The city has loads of culture in Arts
District Houston, great shopping in the Galleria, tons of outdoor activities,
and gorgeous parks. Moreover, it is relatively cheaper than Austin and Dallas.
A favorite Houston neighborhood for young professionals is Montrose. The
eccentric neighborhood has street arts, quaint coffee shops, boutiques, free
art galleries, and food trucks. What’s more, Montrose has a walk score of 86,
so you can enjoy everything it has to offer without driving.
The average
rent in Montrose costs $3,080 a month, according to the Federal Housing and Urban
Development. On the other hand, it costs $4,080 per month in interests,
property taxes, and insurance costs if you decide to buy, and that’s not
including another $450 for principal repayment. In short, you would save $1,000
per month if you decide to rent instead of buy. That works out to be $12,000 a
year.
See ApexaVision.com’s free real estate dashboard for more analysis on home price trends, rental trends, income trends, and population trends.
CAMELBACK EAST NEIGHBORHOOD IN PHOENIX, AZ
The Phoenix
area has seem explosive population growth in recent years. People are attracted
to Phoenix because of its plentiful job opportunities, relatively reasonable
cost of living, great outdoor activities. Phoenix is only four hours away from
the Grand Canyon, 3.5 hours from Lake Havasu, and less than 2 hours from the
Saguaro National Park. Phoenix residents also get to enjoy warm weather all
year round, a rocking nightlife scene in Old Town Scottsdale, and loads of arts
and culture.
The Camelback
East neighborhood is a favorite for young professionals in Phoenix. It is
nestled between two popular mountains for hiking, Camelback and Piestewa Peak.
It is located right next to Scottsdale Fashion Square, the largest shopping
mall in Phoenix. There are smaller shopping outlets as well. Residents of
Camelback East has easy access to a diverse Food scene, upscale shopping
options, and breath taking natural beauty.
FOURTH WARD NEIGHBORHOOD IN CHARLOTTE, NC
Charlotte, NC
has a booming economy and is one of the favorite city for young professionals.
The city boost major players in industries such as financial services (Bank of
America’s HQ is in Charlotte), motorsports (NASCAR is a major employer in
Charlotte), and manufacturing (Honeywell’s new HQ is located in Charlotte). People
are also attracted to Charlotte’s mild weather and low costs of living.
The neighborhood of Fourth Ward has endless array of restaurants, cafes, and sports bars. Missing Europe? Stop by Poplar for some wine and tapas. Want to explore history? Check out Charlotte’s oldest house. Need to take a break from all the hustle and bustle of the city? Re-center yourself at the Fourth Ward Park. Fourth Ward is also one of the few neighborhoods we analyzed where the costs of buying a home cost roughly the same as renting.
