With the proper research and a little patience, a smartly advertised rental property should be an excellent long-term investment. Even though the same general principles apply around the United States when it comes to rental properties, factoring in regional differences is an essential part of finding the right rental and maximizing your profitability. Here’s a breakdown of the significant rent costs from region to region you’ll want to consider as you hunt for the perfect income property.
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The Highest Rent Costs In The Country
It’s no surprise the biggest cities in the country tend to come with the highest rental prices, with metropolises like San Francisco, Boston and Manhattan typically ranking at the very top of the list. By the end of the 2018 summer in San Francisco, the average rental cost was north of $3,500, and multiple estimates pointed to the median price for a one-bedroom apartment landing at about $3,400 a month. Meanwhile, Boston’s average rent is just a shade below San Francisco at about $3,400, though the median for a one-bedroom is a much more manageable at $2,400 per month even after a recent boost in prices. As for Manhattan, the average price of an apartment is the highest in the nation and estimates range from about $3,650 to more than $4,100 per month, with a one-bedroom apartment renting out well north of $3,000.
Beyond the major cities, states like California continue to grab headlines for being far above the national average when it comes to rental costs — a trend that goes beyond just the Bay Area, Los Angeles and San Diego. Mostly thanks to high prices of beach towns and small cities all along the West Coast, California has a fleet of high-rental areas that rank neck and neck with the priciest neighborhoods in San Francisco and New York City. Looking at median rental price projections for one or two-bedroom rentals based on Census Bureau stats, California has six of the top 10 as well as 15 of the top 20 most expensive towns/cities.
High rental costs certainly aren’t limited to California. In New Jersey, Watchung, Bridgewater and Florham Park all rank among the top 10 most expensive areas to live according to the same median-price projections, with median prices of a one-bedroom apartment exceeding $3,600 per month. Nearly all of the most expensive places in the U.S. to live are close in proximity to either the Bay Area in…