Cost of living plays a pivotal role in demand for apartments. Tenants take the cost of living as a main factor when deciding where to live and how much to pay for rent. As someone who owns multiple apartment buildings across the U.S., it’s crucial to understand where the desirable cities to live are: those with access to jobs and entertainment, but also affordable living options.
I always try to focus on the more affordable yet popular cities. I’m not saying that buying real estate in expensive cities is a bad investment strategy; but rather highlighting those markets, because rents there tend to be higher than affordable markets. This ranking is based on the disparity created between average rental rates and average monthly income.
Here are the top 10 most expensive cities in the US:
10. Seattle, WA
Average 1 BR Rent: $2,049
Average Household Income: $85,936
9. Washington, DC
Average 1 BR Rent: $2,347
Average Household Income: $82,192
8. Boston, MA
Average 1 BR Rent: $2,150
Average Household Income: $66,758
7. San Jose, CA
Average 1 BR Rent: $2,693
Average Household Income: $96,662
6. San Diego, CA
Average 1 BR Rent: $2,236
Average Household Income: $98,632
5. New York, NY
Average 1 BR Rent: $2,650
Average Household Income: $61,816
4. Miami, FL
Average 1 BR Rent: $1,995
Average Household Income: $35,221
3. Honolulu, HI
Average 1 BR Rent: $1,721
Average Household Income: $31,146
2. San Francisco, CA
Average 1 BR Rent: $3,600
Average Household Income: $102,300
1. Los Angeles, CA
Average 1 BR Rent: $2,728
Average Household Income: $58,043
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About the Author
Ellie is the founder of Blue Lake Capital, a real estate company specializes is multifamily investing throughout the United States. At Blue Lake Capital, Ellie helps investors grow their wealth and achieve double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.
Ellie is the host of REady2Scale, a podcast that shares true stories from within the industry, and the critical lessons learned, from the most successful real estate investors, innovators, developers, and more from around the globe!
She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.
Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
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