3 American Cities With the Highest Rents

No matter whether you own a home or rent one, the largest amount that goes out of your paycheck is for your living space.

In some places, people pay almost half their paycheck but don’t necessarily live in fancy homes either. More often than not, they’re renters.

As a rule, it’s a good idea to pay only 25% of what you make towards the rent but this might not be possible depending on your location.

 Here are 3 American cities where renters pay almost half their paycheck:

1: Los Angeles

48.9% was the rate that renters paid from their salaries in Los Angeles. Homeowners, on the other hand, only spent about 39.9% of their monthly income. Yet this advantage that homeowners have will not last if mortgage rates go up. In fact, if it went up by a mere 6%, then homeowners will have to pay almost 50% of their salaries as a result. This is no better, if not worse, for cities such as San Jose and San Francisco.

2: San Francisco

About 46.7% of one’s income was spent on renting a home in San Francisco. Despite renting being so expensive for those who stay in apartments, it isn’t any better for those who own homes either. Simply put, mortgage payments amounted to 41.4% of one’s income for homeowners.

3: Miami/ Fort Lauderdale

About 45% of one’s monthly income is spent on rent. So it’s a better idea to buy a home rather than rent given that while homeowners spent 20% of their monthly income on their mortgage, renters spent so much more.