The Big Cities With the Most Affordable Rent Prices Are…

You'll be amazed at which fun-filled city is one of the best for renters right now.

Image: EXTREME-PHOTOGRAPHER

The post The Big Cities With the Most Affordable Rent Prices Are… appeared first on Credit.com.

The World’s Priciest (& Cheapest) Cities to Live in 2017

Will Travel for Affordable Housing?

Image: Eva-Katalin 

The post The World’s Priciest (& Cheapest) Cities to Live in 2017 appeared first on Credit.com.

The World’s Priciest (& Cheapest) Cities to Live in 2017

Will Travel for Affordable Housing?

Image: Eva-Katalin 

The post The World’s Priciest (& Cheapest) Cities to Live in 2017 appeared first on Credit.com.

The Best Cities in America for Buying a Starter Home

buying-a-starter-home

We’ve written a lot recently about the disappearing starter home. A combination of rising prices, aggressive investors, and flat incomes are turning America into a nation of renters … and making things very hard on young people just starting out.

But there are still communities where plenty of starter homes are for sale — hundreds of them, around the country. Working with data provided by RealtyTrac, Credit.com has crunched the numbers and developed a robust list of ZIP codes where nearly all homes cost less than $200,000, well below the national median list price of $250,000. In fact, there are 515 ZIP codes in the U.S. where at least 95% of homes sold between January and May this year were under $200,000, according to the data. (And more than 1,000 where at least 90% were sold for $200,000 or less).

Price alone doesn’t indicate affordability, however. In some places, $200,000 sounds ridiculously cheap; in others, it’s out of reach even for folks earning more than the local average. So we fine-tuned the list by requiring that the local median income was 125% of the national median income ($53,657). In other words, we found places with cheaper-than-average homes and higher-than-average incomes.

And even by those high-income standards, there are still more than 60 places in the U.S. — most east of the Mississippi — where the vast majority of homes sold cost under $200,000.

Places like Magnolia, Delaware, near Dover, make the cut. There, the median sale price this year has been around $162,000, while the median income is around $74,000. And Manchester, Pennsylvania, near York, with homes selling for close to $129,000, and incomes are at around $73,000. Racine, Wisconsin, made the list, too (homes about $97,000, incomes about $67,000). Smaller towns near Chicago, St. Louis, Detroit, and Philadelphia are also on the list.

“Certainly the list is a demonstration that there are plenty of affordable housing markets in the country, just most of them east of the Mississippi. Maybe the message from this is ‘Go east, young homebuyer,'” said Daren Bloomquist, vice president of RealtyTrac.

As you look at the list, here’s a general rule to keep in mind. Places were the ratio of home price to income is greater than 4 begin to become unaffordable, while a ratio of 3 would be considered very affordable. So if median prices are $225,000, but income in $53,000, the average earner is going to struggle to buy a home. On the other hand, if homes cost $150,000, but incomes are $50,000, that’s pretty attainable for the average-paid worker.

All hope is not lost for sub-$200,000 home seekers out West, however. If you dial down the criteria, more sub-$200,000 places appear all across the U.S. — even in California. For example, if you expand the list to include ZIP codes where only 75% of home sales were sub-$200,000, but maintain the 125% income standard, 648 ZIP codes fit the bill. Most are still in the East or the South. But Pueblo, Colorado, makes the cut ($129,000/$73,000). So does Bakersfield, California ($160,000/$73,000) So, by the way, does Pittsburgh ($142,000/$72,000), a place we’ve written about before in our Real Cost of Living series as does Hebron, Ohio, near Columbus, which we’ve also spotlighted ($143,000/$68,000).

All income data, was taken from the 2014 U.S. Census.

Here’s 25 of the 61 ZIP codes that make the list.

starter-homes

Remember, having a good credit score can make buying a home more affordable — it’ll help you qualify for the best interest rates, so it’s a good idea to see where you stand if you’re looking for a mortgage. (You can view two of your credit scores, updated each month, for free on Credit.com.)

More on Mortgages & Homebuying:

Image: solstock

The post The Best Cities in America for Buying a Starter Home appeared first on Credit.com.

11 Ways I Saved Money By Leaving New York City

moving_out_of_city

It was a tough choice when I decided to leave New York City last year, just six years after I moved there. But, like a lot of people my age, I was seeing my future in New York as plagued with constant money frustrations.

The cost of the city isn’t easy to ignore. Every New Yorker (unless you make a seven-figure salary) talks about how expensive it is. It’s a conversation people have at every party, it’s a topic we’re constantly complaining about on Twitter, it’s a daily annoyance that permeates almost every decision you make. After all, you either have a monthly unlimited Metro card, stay in your neighborhood or pay $2.75 to go anywhere (that’s $5.50 for a roundtrip).

The tough part of leaving NYC wasn’t realizing it was outlandishly, unforgivably, unrelentingly expensive. The tough part was leaving the good friends — the family, really — I had in New York. But I knew certain dreams I had, like buying a home, were just not possible in a city where rent on a one-bedroom apartment within an hour’s commute of my office was continually edging closer to $2,000 a month. So I made the leap (or the drive, to be specific) and relocated to Richmond, Va.

Here are the big differences in cost I’ve discovered since leaving the big city for the South.

1. Housing Costs

I tell everyone this fact — my mortgage for a four-bedroom house (including taxes and insurance) is less than my rent for a one-bedroom apartment in NYC ever was. It may be the New Yorker in me (I wasn’t lying, everyone compares their rent price at parties in NYC), but I am still blown away at how much more I can afford outside of the city.

2. I Ended My Reliance on Seamless

Everything in NYC is just a little bit harder than everywhere else. It’s the same for other big cities, I’m sure, but every time I’d look at an elderly woman walking with her cart down the block to get groceries, I was reminded that there are conveniences other Americans are privy to that New Yorkers aren’t. One of those things is making food at home. I found it so hard to plan meals in advance and instead ended up relying on Seamless. I lived in Queens — one of the most diverse counties in America — and that diversity is reflected in the endless delivery options. Want a burger? There were at least four dozen places to get one. Sushi? Same thing.

The Seamless delivery options for my first apartment when I moved to Richmond? 11 total, mostly pizza places. And a few of them had a $9 delivery fee, making it an easy choice to stop ordering.

3. My Crock Pot Is My Best Friend

It’s hard to have a lot of appliances in your kitchen as a New Yorker. You’re lucky if you have enough counter space for a toaster oven, let alone a crock pot or a stand mixer or a juicer. Don’t get me wrong — people make it work, but it wasn’t until I moved to Richmond that I got appliances that have made spending less money on food easier.

My crock pot is a saving grace. I spend about $120 on groceries for a week and that provides every meal. I work from home, so I now wake up in the morning and, in the time I would have spent commuting in NYC, my husband or I get everything into a crock pot and turn it on. Dinner is ready hours later, and I don’t have to rely on high-cost but high-convenience options like fast food.

4. Drink Costs

Going out in a city where you drive everywhere naturally limits how much you drink while out. Also, instead of the average cocktail being $12, I’m paying $8 a drink. For a 20-something like myself, it adds up quickly.

5. Ubers/Lyfts/Taxis

A taxi ride home after a night out was my “splurge” in NYC. And by splurge, I mean all my discretionary income would end up going toward taxi rides. It was a vice. I have my own car now, so I drive everywhere. You might be saying, “but your car costs more than a monthly Metro card!” and you’re right. But when you add up what I spent on subway fares, cab rides and Ubers, I spend less every month on my car loan payment, gas and car insurance.

6. I Broke My Starbucks Addiction

I used to buy a venti skinny vanilla latte from Starbucks most days. Another vice. It was on the way to the office every day (in fact, there were two on my walk from the subway exit to my office door). Add it up — $5 a day (roughly) x 5 days a week x four weeks a month = $100 month. I make my own coffee now (Blanchard’s Dark As Dark, for any Richmondites). It’s $9 a bag and a bag lasts me and my husband a week. Total cost a month = $36. That’s a nice little savings.

7. Commuting

I work from home, I don’t commute. Monthly savings: $116.50 (price of an unlimited 30-day Metro card)

8. The ‘Walk From the Subway’ Splurge

Every now and then I’d walk home from my subway stop and see a really delicious-looking napoleon in a bakery window, or a sale sign on artisanal soaps or a new hair product that looked like it would make my hair longer, better, stronger, less frizzy. I’d stop and swipe my card. The daily temptation was hard to avoid, and it added up pretty quickly. When you walk by a store at least 10 times a week, it’s easy to stop in once in a while and justify it as a one-off expense.

9. Movie Tickets

A movie ticket in NYC was close to, if not more than, $15 per person. That means a night out with my husband was $30 minimum. In Richmond? Under $10 per person. A small savings, but we’re movie buffs and go to the movies often enough that it makes a small difference.

10. Buying In Bulk

Costco! I can’t tell you how much I love Costco. Granted, I’m a new devotee so the shine may have worn off for others, but I have really started to crunch the numbers and am figuring out how much buying in bulk can save me, especially for things I know won’t expire, like cleaning supplies. In New York City, I could’ve shopped at Costco, but I couldn’t store a massive pack of paper towels in my tiny apartment, so bulk buying wasn’t really an option.

11. Trips Home for the Holidays

I used to spend $600 a year getting a flight home to Ohio for the holidays. My husband would spend about the same to join me. Now, we can drive home. It takes a little longer, but with gas prices about $1.50 a gallon in our area, we drove home this year and back for less than $75 in gas costs. $75 in gas vs. $1,200 in plane tickets. It’s a big savings, especially around the holidays when everyone’s credit card balances are up (potentially hurting their credit scores — you can see if your credit scores are taking a hit for free on Credit.com).

Should everyone leave NYC? No! But leaving the city has its appeal.

More Money-Saving Reads:

Image: Purestock

The post 11 Ways I Saved Money By Leaving New York City appeared first on Credit.com.