Use These Five Strategies for Finding an Affordable Rental in an Unaffordable City

Living in a city like New York, San Francisco, or Boston often means forking over a large portion of your income to pay your rent—especially if you don't want to live with roommates. This often prompts those living in more affordable housing markets to wonder, or even ask, why you don't simply pack up your life and move somewhere cheaper.

While that might be an option for some people, others have ties to pricey cities, like their job or family, or have other reasons why relocating isn't on the table. But until more affordable housing is available, people who call those major metro areas home will have to figure out how to stretch their rent budget as far as possible. Because strategy is important in real estate, I reached out to Andrea Neculae, a research analyst at RentCafe, for some insider tips on finding a rental you can afford in an unaffordable city. Here's what to know.

How to find an affordable rental in an expensive city

A recent report from RentCafe determined how much living space you can get for $1,700 per month (roughly the national average rent) in the 50 largest U.S. cities. In one Memphis neighborhood, you can find a rental home with nearly 2,000 square feet of living space for $1,700. Meanwhile, in Manhattan, you'll barely be able to rent a 200-square-foot space for the same amount.

Here are Neculae's takeaways from analyzing those data—which, she says, might help improve your chances of finding a rental that won't break the bank in a notoriously expensive city.

Find the sweet spots

When analyzing the study data, Neculae and the rest of her team noticed a pattern emerging in many of the larger rental markets: The ring of ZIP codes surrounding a city's downtown area often has the best balance of price and location. "These spots can be real gems without costing a fortune," she tells Lifehacker. That said, if you wander too far outside the city center, you might find that the cost of rent spikes in neighborhoods with a mix of urban and suburban features. "These are now highly coveted by older millennials with families looking for urban amenities in a suburban setting," Neculae explains.

Relocate your home office

It's no surprise that people who work remotely often want a rental with space for a home office. But before blowing your budget on an extra room, Neculae suggests looking into rentals near coworking spaces. You'll need to do the math, but it could work out to be cheaper to rent a desk in a shared office than to pay more to rent a home with room for an office. "In cities like Chicago and New York, for example, giving up a spare bedroom could save you anywhere between $9,000 to $20,000 each year," she notes.

Consider a transit-oriented development

According to Neculae, you may be able to save money living in a transit-oriented development (TOD). A combination of residential and commercial areas, TODs are designed to maximize access to public transit, offering easy access to work, and city amenities, without having to rely on a car. "Plus, several states have announced initiatives to build more housing close to transit, so you can expect to see more of these projects in the future," she adds.

Look for rentals in the fall or winter

Typically, more people are on the hunt for rentals in the spring and summer, meaning there's more competition over properties, and less room for negotiation at this time of year, Neculae explains. "If you're hoping to find a good deal, consider looking in the autumn and winter months when rental demand is typically lower, giving you the chance to score the apartment you love—often with a rent special," she says. Neculae recommends starting your search early in January or February for the best chances of finding a property that meets your needs at a decent price.

Don't ignore the fees

If you find an apartment with rent so low that it seems too good to be true, there's a good chance that it's either a scam, or you haven't factored in all the various fees the resident is required to pay on top of their rent. "These not-so-obvious charges like application fees, security deposits, charges for trash collection, or pet fees can pile up to a significant amount that would raise your monthly expenses," says Neculae.

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