Moving to a new city
How do I know if I can afford to live in a new city?
Updated By the Housing Rocket moderators
Short answer
Compare what you would actually pay, not city averages. Price the kind of place you would really rent in the neighborhoods you would choose, then add utilities, transportation, state and local taxes, and insurance. A higher salary can disappear in a city with high rent, while a car-free city can offset higher rent.
Online cost-of-living calculators give you a starting point, but they average everyone together. Your budget depends on your own choices.
- Watch real listings for two weeks in your chosen neighborhoods and note what similar places rent for.
- Estimate utilities for the climate. Air conditioning in hot summers and heating in cold winters change bills a lot, and older buildings cost more to heat.
- Price transportation: a transit pass, or car payment, insurance, fuel and parking. Car insurance and parking vary widely by city.
- Check state and local income tax. Some states have none, others take a noticeable share.
- Compare take-home pay, not salary, against the total.
Then apply a sanity check. Many people aim to spend no more than about a third of their gross income on rent, and landlords often screen for income of around three times the rent. If the numbers only work with a roommate, factor that into the neighborhood choice. The details of affordability rules are in rent and applications.
If you are negotiating a job offer, this is the moment to use real numbers for rent in the new city.
Want the whole picture? Read How to Find Housing Before You Move to a New City.