Median Rent Reaches $1,849: 5 Ways for Renters to Cope With Higher Rental Costs
- The median rental price reached $1,849 in May 2022 -- a 15.5% increase from last year.
- Sharing your space with a roommate, getting a side hustle, and trimming extra expenses are ways you can cope with higher rental prices.
If your rent costs more now than it did last year, you're not alone.
Everyday living costs are increasing throughout the country -- including housing costs. If you've been seeing higher rental prices advertised in your area or have had your rent increase recently, you're not alone. Realtor's May Rental Report found that the median rent in the top 50 U.S. metro areas reached $1,849 in May as landlords raise rental prices -- which is 15.5% higher than May 2021.
The report noted that areas with more available rentals had lower asking prices due to supply exceeding demand. On the other hand, metros with fewer vacancies had much higher asking rental prices. Regardless, many U.S. renters are now paying more to live in their homes.
High rental prices impact your wallet
Many Americans are finding that increasing rental prices significantly impact their financial situation. As rental prices surge, it can be difficult for renters to prioritize their personal finance goals.
If you're continuing to pay more for rent each year, housing expenses will eat away at your monthly budget and leave less money for you to pay other expenses and make regular contributions to your savings account.
Five ways to combat sky-high rent prices
The good news is you may be able to take some steps to better cope with higher rental costs. Here are some ideas.
1. Consider getting a roommate
If you have extra space, you may want to get a roommate to share your living space and rent. Another option is to move into a home with other roommates when your current lease expires. While it can be a big adjustment going from living solo to living with others, sharing expenses can be a win-win for everyone.
2. Get a part-time job or side hustle
If your schedule allows, getting a part-time job or a side hustle can be an excellent way to boost your income. When you're able to supplement your monthly income, it will make paying rent easier and give your budget more breathing room.
3. Negotiate with your landlord
If your rent is increasing, you may want to try negotiating with your landlord. If you've been a responsible tenant and have always paid your rent on time, your landlord may be willing to work with you and only raise your rent a small amount. While there's no guarantee, it's worth asking.
4. Trim extra expenses
If you can afford to pay rent but feel like you're living paycheck to paycheck, see if you can trim some additional expenses. For example, getting rid of a streaming service you hardly use or working out at home instead of at the gym could free up money.
5. Consider switching up your living situation
While you may be used to living in a spacious rental, you may be able to save money by making adjustments to your current living situation. For example, moving into a studio apartment or finding a one-bedroom apartment with all the utilities included may help you save more money.
Hopefully, renters will see some relief in the coming months. But for now, many renters are struggling to pay higher rental costs in addition to increasing food, gas, and living costs. Life is more expensive and seems to only get pricier each day.
Are you looking for guidance on how to save more money and improve your spending habits? These personal finance resources may be helpful.
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