Your cost of living in the United States will vary greatly depending on your location. Usually, the cost of housing is the most indicative factor to the affordability of a city. While some regions are still reeling from the pain of the financial crisis, others are approaching what some economists consider to be housing bubbles.
Hereâ€™s how affordable it is to own a home in five major U.S. cities, respectively.
Thereâ€™s no denying that Seattle is one of the hottest housing markets in the U.S. right now (even with the rainy winters). In fact, no other major city is seeing home prices rise faster than Seattle. According to the Case-Shiller Home Price Index, Seattleâ€™s home prices have been rising over 10 percent per year of the past five years.
The Seattle Times reported the average starter home in Seattle will cost its typical buyer half of their income. Thatâ€™s twice as much as the oft-recommended figure of limiting your mortgage payments to 25 percent of your after-tax income. With a median home price of well over $700,000, and rising, make sure youâ€™ve done some personal accounting before moving your family to Seattle.
San Francisco, CA
Of all major U.S. cities, San Francisco is probably the poster child for skyrocketing home prices. Itâ€™s no surprise, considering the Bay Area is a magnet for startup and tech talent. According to Paragon Real Estate Group, the median home price in San Francisco at the end of the first half of 2017 was $1.4 million. That number stands out even more when you compare it to the median home price across the entire U.S., which Zillow pegs at $259,000. Despite its charms, San Francisco probably isnâ€™t somewhere you should consider for your next home unless you have a really solid stream of income.
New York, NY
The Big Apple has traditionally been considered one of the priciest cities on the planet. And a large reason for that has to do with exorbitant housing prices, especially in Manhattan, where the median home price is currently over $1.7 million.Â
That shocking sticker price doesnâ€™t include a variety of extra, often overlooked expenses, such as homeowners insurance, maintenance fees and property taxes. Itâ€™s crucial to factor all of these costs into your budget before making the decision to move somewhere.
Far from either coast, Chicago might not have the inherent appeal of a location like New York or San Francisco, but it also doesnâ€™t come with the high price. The median home price in Chicago right now is $299,900â€”well below the aforementioned cities, yet still noticeably higher than the median price for the entire U.S. This is certainly one of the more affordable big city real estate markets for the average American.
Once known as Motor City, Detroit now carries a reputation of being a place that progress left behind. Although the greater Detroit area has recovered some since taking a dramatic tumble, the median listing price is still under $200,000. If you can handle a little bit of uncertainty, or if you can work from anywhere, you can get a lot of house for your money in Detroit.
When making a massive financial decision such as buying a home, make sure youâ€™ve done your research. Itâ€™s essential to not only know youâ€™re getting a fair deal on your new home, but that itâ€™s at a price you can truly afford.
Identity Magazine is all about guiding women to discover their powersÂ of Self-Acceptance,Â Appreciation, and PersonalÂ Achievement.Â We ask that every contributor and expert answerÂ Â the Identity 5 questions in keeping with our theme. Their answers can be random and in the moment or they can be aligned with theÂ current article they have written.Â In that way, and as a team, we hope toÂ encourageÂ and motivateÂ each other, thus inspiringÂ you to Get All A’s.
1. What have you accepted within your life, physically and/or mentally?Â Additionally, what are youÂ still working on accepting? Now, weâ€™re talking about resignation, rather stepping into, embraced, and owned.
The challenging life of Entrepreneurship
2. What have you learned to appreciate about yourself and/or within your life, physically and mentally?Â On the other handÂ OR in contrast,Â are there elements of who you are that youâ€™re still working onÂ appreciating?
I appreciate my work and the opportunity to collaborate with others.
3. What is one of your most rewarding achievements in life? Tell usÂ not onlyÂ what makes YOU most proudÂ but alsoÂ share theÂ goals and dreams that you still have.
Building my own career.
4.Â Of course, weÂ all have imperfections,Â orÂ so we think.Â In truth,Â we are all perfectly imperfect. What are your not-so-perfect ways?Â Likewise,Â what imperfections and quirks create who you areâ€”your Identity?
My laugh is one of a kind.
5. â€œI Love Myâ€¦â€ is an outlet for you toÂ appreciate and expressÂ all the positive traits that make youâ€¦wellâ€¦YOU!Â In fact, sharingÂ what you love about yourself will make you smile, feel empowered, and uplift your spirit and soul. (We assure you!)Â Therefore,Â Identity challenges you to complete the phrase â€œI Love Myâ€¦?â€
I love my career and my life.
Photo by Hernan Lucio on Unsplash