Rising mortgage rates and low housing vacancies have increased the standard rent to astronomical prices. The shortage in housing has had a domino effect on the number of people in the rental market increasing demand. The law of supply and demand says, when demand is high and supply is low the economic impact is an increase of prices.
On average, rent in the United States is $1,326 per month in 2022. Rental rates this high are causing disposable income limitations. People are finding it harder than ever to pay rent and adjust to increased prices of necessities.
Let’s discuss ways to save on these high rent prices.
1. Consider sharing an apartment with a roommate or two.
2. Look for rental properties that offer rebates or new leasing specials.
3. Be flexible in rental amenities.
4. Consider moving to areas where the demand for housing is lower.
Increased living expenses can be hard for everyone. The impact of these increases typically means that another area of your life could be negatively affected. Here are some areas that you can make small adjustments to help offset the increase of housing costs. You can reduce the number of times you eat out, by eating at home more frequently you will save more money. Consider a meal delivery kit service that can provide variety while reducing your food costs. Look for ways to reduce utility bills and eliminate unnecessary subscriptions. When you bundle cell phone lines with family members there is a potential for you all to save together. Unplug! Philo, YouTube TV, Amazon firestick and other streaming services also provide additional savings compared to the cost of cable.
We always encourage looking for ways to save AND increase your income. Invest in yourself! Continue your education by learning a new trade/skill to enhance your current job or start a side job to generate more income. There are many websites like Fiverr, Upwork and more that allow you to make additional income from the comfort of your own home as well. Maybe you work from home and want to get out of the house more? Ridesharing, food delivery, babysitting and other services are great ways to generate additional income as well. These recommendations can combat the increase in housing expenses, reduce your monthly costs and increase your income make living in this new housing market more manageable.
Source:
Fontinelle, Amy. 2022, Investopedia, Easy Ways to Cut Rental Costs. <https://www.investopedia.com/articles/younginvestors/08/save-money-rent.asp>
