We tend to think of New York as a hub for millennials living paycheck to paycheck, hindered by a higher-than-average cost of living coupled with their average yearly salary of $64,000. But young professionals are struggling throughout the nation. A new report detailed in the Washington Post looked at 25 major cities across the U.S. and found that in nearly half of these locales, “a millennial living alone in a one-bedroom apartment would need to spend more than 30 percent of his or her income on rent — surpassing the threshold for what financial experts say is affordable.” The solution, though, could be to get a roommate. Take New York, where millennials spend about 34 percent of their income on rent. By shacking up with a buddy, they can save $728 a month, or 14 percent of their income.
The study notes that, as of 2015, 60 percent of millennials lived with roommates or a parent or relative, the highest rate in 115 years. This is especially appealing in the cities where millennials can save the largest portion of their income by splitting a two-bedroom apartment with a roommate–Miami, New York, Los Angeles, Oakland, Boston, and Atlanta, respectively. In Miami, where real estate clearly outpaces salary, renting a one-bedroom can use up to 54 percent of one’s income, the median of which is $40,000. But getting a two-bedroom with a roommate would save 19 percent, or $640 a month. The full reach of the situation can be felt in this statement from the Post: “Even in Minneapolis, where moving would make the least difference, millennials would save 6 percent of pay by gaining a roommate.”
New Yorkers looking to get in on the cash-saving may consider Astoria; another study recently found that, for 20- to 36-year-old New Yorkers searching for someone with whom to split the rent, the top neighborhood is the Queens ‘hood.
[Via Washington Post]
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