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Renters with a budget of $1,500 per month to spend on an apartment will get the most bang for their buck in Nebraska, Oklahoma or Texas, according to a new analysis.
Researchers at RentCafe examined how much square footage renters get for that sum in 200 U.S. cities. The takeaway: For $1,500 you’ll get at least 1,300 square feet in Wichita, Kansas; Toledo, Ohio; Oklahoma City and Tulsa, Oklahoma; and Memphis, Tennessee. Smaller cities offering more spacious digs include Huntsville, Alabama; Augusta, Georgia; Metairie, Louisiana; Fayetteville, North Carolina; and Clarksville, Tennessee, according to the rent services firm.
On the opposite end of the square-footage spectrum for $1,500, renters would have to make do with less than 400 square feet in pricey metros like Boston, Manhattan and San Francisco. New York City’s Manhattan is the only place in the nation where that amount gets you less than 300 square feet, RentCafe found.
“[T]he most in-demand coastal locations tend to offer smaller spaces for the money, whereas moving away from the coasts can get you more space and more comfort on the same budget,” RentCafe said.
Some 44 million Americans are renters, according to the most recent U.S. Census data.
Renters saw record high prices last year as sharply higher interest rates forced many aspiring homeowners to continue renting, driving up demand and prices. Rent rose so much last year that it continues to push some Americans — particularly people in Florida — into homelessness. The national average for rent peaked last August at about $2,053, according to Rent.com.
Still, renting is likely the cheaper housing option for someone on a budget. A March report by the National Multifamily Housing Council found that owning a home costs $1,176 more per month than renting from a professionally managed apartment complex. That’s the biggest buy-versus-rent gap since fall 2006, the group said.
In better news for millions of Americans, those sky-high rents have finally started to fall this year. As of February, the national median monthly rent was $1,937, down 5.6% from $2,053 a year ago, according to Rent.com, which noted that prices across the U.S. have fallen for four straight months.
