Owning a home is becoming more affordable while renting is becoming more expensive than ever.
And where it gets really insane, rent-wise is in these 14 neighborhoods. The shocking thing is that rents in these neighborhoods aren't always in the middle of huge hustle and bustle metroplexes. One is actually in Jersey City, for example.
Apartments.com compiled a list of the 14 most expensive neighborhoods for renters in 2014, by evaluating how much of a renter's paycheck goes toward rent, as well as median monthly household income, overall cost of living and inflation.
The site found that in some of the most desirable neighborhoods, renters are willing to drop more than half of their monthly income on rent.
The current national average cost of rent for a one bedroom apartment in August was $939, according to CoStar. But the cities on this list average more than double this amount.
"We're seeing renters paying a premium to live in the hottest neighborhoods, which goes to show it truly is all about location, location, location," said Brad Long, president of Apartments.com. "These renters are willing to spend a rather significant portion of their overall income on monthly rent, in order to afford the luxury of living in exclusive areas."
Since rents didn't experience the massive drop that home values witnessed during the recession, rent prices just keep climbing. Meanwhile, home values jumped 6.5% year-over-year, while national rents increased 2.8% for the same time span, according to a real estate market report from Zillow.
Homes remain more affordable to buy in 94 of the country’s 100 largest metros compared to historic averages. On the other hand, renting is more expensive than ever in 88 of the country’s 100 largest markets, Zillow also noted.
Without further delay, the 14 most expensive neighborhoods for renters in 2014, along with the average monthly rent for a one bedroom apartment:
14. Philadelphia: Rittenhouse Square – $1,860
13. Pasadena, CA: Southwest Pasadena – $2,957
12. Washington DC: Foggy Bottom / GWU / West End – $2,662
11. Queens, NY: Hunters Point – $2,811
10. San Diego, CA: Harborview – $2,206
9. Newport Beach, CA: Newport Center – $3,133
8. Jersey City, NJ: Historic Downtown – $3,068
7. Great Neck, NY (Nassau County): Great Neck Plaza – $3,223
6. Palo Alto, CA: Crescent Park – $3,157
5. Oakland/Emeryville, CA: Golden Gate – $2,695
4. Boston: Government Center – $3,782
3. San Francisco: Yerba Buena – $3,643
2. New York City: DUMBO (Down Under the Manhattan Bridge Overpass) – $4,023
1. New York City: Penn Plaza / Garment District – $4,440
