This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Whether you live in a house or an apartment, you’re still paying for housing
Where do you live?
How much debt do you hold?
What are your financial goals?
What percentage of your income will be allocated to rent?
How much money is allocated for living expenses, or are you going broke to pay your rent?
Recently I chatted with a fellow techie living in San Francisco who is trying to get a job. They hope they can get one soon because they’ve been out of work for a while, and most people know that San Francisco is infamous for its escalated rental prices. He won’t be able to stay for much longer if he doesn’t get a job anytime soon. Furthermore, he can’t terminate his lease early.
Places With The Highest And Lowest Rent
According to World Population Review, here is a breakdown of the highest and lowest rents in states across the nation…
The 10 States With The Highest Rent
Hawaii – $1,651
California – $1,586
Maryland – $1,415
New Jersey – $1,368
Washington – $1,337
Massachusetts – $1,336
Colorado – $1,335
New York – $1,315
Virginia – $1,257
Alaska – $1,240
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The 10 States With The Lowest Rent
North Dakota ($826)
Iowa (#905)
Arkansas ($917)
Kentucky ($920)
South Dakota ($952)
Missouri ($97)
Nebraska ($985)
Wyoming ($985)
Ohio ($997)
Mississippi ($1,006)
But of course, if you live in any metropolitan area, these prices will all inflate to a much higher price. Rent in Los Angeles averages around $3,000. The average rent in San Francisco is around $3,500. But there are also people in Atlanta, Miami, and Chicago paying these same prices except for bigger apartments or rental homes.
At what point does it make sense to buy a house? Well, many people don’t buy a home because it requires considerable costs in the long term.
However, you can always think of it this way, you’re going to be paying for housing either way.
The question is, do you want to stay in place for a while and build equity, or do you want the freedom to move around, get free (or included) maintenance, and eradicate the responsibility to maintain your home?
I always recommend keeping your rent at 10% or less of your net income – if possible, but I understand this is aggressive for many people. If you are unable to do this, then aim for 10–25% of your net income so you still have access to 75% of your income.
Once you go above the $2,999 mark, you want to ensure that paying this price makes sense for your budget, current income, and financial goals. $3,000+ in rent is not the end of the world, but over time it does start to add up. $36,000 a year over five years is $180,000, which is a downpayment for a higher-priced home or an entire house payment for a less-priced home.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.