PHOENIX — It is getting increasingly more expensive to live in the Phoenix area, according to a new report.
According to a recent analysis from Zillow, the Phoenix metropolitan area was ranked among the top 15 worst metro areas to rent a home due to the high costs.
More than 27 percent of a resident’s average income was spent on rent in the third quarter of fiscal year 2017. This was a jump of about five percent from past years.
However, those who are looking to buy a home in the area might have better luck.
Only 18.3 percent of a resident’s average income was spent on mortgage payments in the third quarter of fiscal year 2017, down from 21.3 percent. This represented an average annual savings of $1,791.
But it could be worse: The New York, Los Angeles, Chicago, Dallas and Philadelphia metro areas topped Zillow’s list for the worst areas to rent a home.
According to Domino Magazine, the worsening rent affordability could indicate that home buying might be the new way to go.
Priya Malani, co-founder of the New York-based financial advising company Stash Wealth, said residents can try to combat these high rent prices by “[throwing] traditional budgeting out the window and [budgeting] in reverse.”
“Instead of saving whatever’s left after you spend all month, spend whatever’s left after you save. With your saving out of the way, you can enjoy spending the rest of your money guilt-free.
“It’s way better than constantly negotiating with yourself for every purchase, and hoping that there’s something left over at the end of the month for rent and other lifestyle expenses,” Malani said.