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- How much money you need to make to afford a studio apartment varies widely across the country.
- The Economist’s “Carrie Bradshaw index” ranks cities by how affordable they are for single renters.
- Coastal cities are the least affordable, while Sun Belt and Midwestern cities are more livable.
Living with roommates is a good way to save some cash, often while enjoying the added social benefits of cohabitating. But sometimes, you need your space. Where you can afford to live alone largely depends on which city you choose.
The Economist ranked major US cities based on its “Carrie Bradshaw index,” or how affordable they are to live in alone.
The publication took each city’s typical studio apartment rent price and calculated the salary needed to live there without spending more than 30% of one’s gross income — a common recommendation to spend on housing.
Dividing the median wages of each city by the threshold wages provides The Economist’s “Bradshaw score.” Scores with a value of over one mean most people can afford a studio apartment in that city. Nearly two-thirds of cities, 59, scored above a one — the number was 62 last year. The Economist used data from the Bureau of Labour Statistics and Zumper.
Unsurprisingly, cities like New York and Jersey City were some of the least affordable, but some cities with newly changing demographics crept into the top 10.
“For the third year running, New York remains the most unaffordable city, squeezed by high demand and record low vacancy rates,” The Economist research reporter Lizzy Peet told Business Insider. “Other cities in the top ten include those that have experienced a surge in population in recent years, and those that have historically struggled to build new housing, such as Boston and Charleston.”
Cities like Lincoln, Nebraska, and Tulsa, Oklahoma, finished in the top 10 of most affordable, even though their wages hover near or below national numbers.
Here are the cities that are most and least affordable for renting a studio apartment.
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Read the original article on Business Insider
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