Urban Rent Crisis

As I have moved closer to the end of my college career, I have spent a lot of time reading about life after college and trying to get a feel for what comes next for graduates. One thing that I have discovered is the high cost of living in many large cities where jobs are located. In larger cities, residents pay huge percentages of their income towards rent and it appears that the cost increases of housing outpace the overall cost of living increase between rural and urban areas.

Tiny apartments such as this one are becoming more standard in densely packed cities such as Boston, New York and San Francisco, but they still can cost upwards of $2,000 per month. Many of these small apartments are between 250-300 square feet. This is a high price to pay for living downtown. 

For people who cannot imagine themselves crammed into microapartments, costs can run even higher. In Manhattan for example, the average price of a one bedroom "regular" sized apartment runs about $3,000 per month. Most financial advisors will recommend that a person spend no more than about 25% of their gross income on housing. In order to afford a $3,000 per month one bedroom apartment, a person would need to earn around $145,000 per year. 

The situation in Boston is a bit less crazy. This map shows the distribution of rent prices around the city. Notice that darker red colors are located close to subway stops. In the heart of the downtown area, prices are approximately $2,000 per bedroom. 

Personally I wonder how anyone can afford to live in these cities without making huge financial sacrifices. It seems to me that it would be nearly impossible for college graduates to practice financial responsibility while trying to live in one of these expensive cities. Unfortunately, these areas are extremely appealing for college graduates and tend to have the best job markets as well.