Price appreciation may be great if you’re a seller hoping to reap a return on your real estate investment, but for city dwellers on tight budgets the rising cost of living in a major metro is becoming prohibitive.
CNBC reported on a Rent.com study that looked at the change in housing costs in 22 major cities over 12 months, using data from the Bureau of Labor Statistics. The analysis included mortgage and rent payments combined with property taxes and the cost of maintenance, utilities, household products and furnishing. Miami saw the largest increase, 8.2%, between 2016 and 2017 followed by St. Louis with 7.8%. That rise in housing spending increased by more than 2% the number of residents in that Midwest city who spend half of their income on housing.
However, when Rent.com asked 573 residents if living in the big city was worth the cost, 55% said yes, 30.7% said no, and 14.3% were neutral. More than three-quarter of respondents did say they are open to moving at some point, and 12.4% want to move as soon as possible
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