The cost of daily living is increasing across the country, including housing costs. If you’ve seen higher advertised rental prices in your area or your rent has recently increased, you’re not alone. The Realtor’s May Rental Report found the median rent in the 50 major U.S. metro areas hit $1,849 in May as landlords hiked rental prices 15.5% higher only in May 2021.
The report noted that areas with more rentals available had lower asking prices due to higher supply than demand. In contrast, subways with fewer vacant seats had much higher rental prices. Either way, many American renters are now paying more to live in their homes.
High rental prices have an impact on your wallet
Many Americans find that rising rental prices have a significant impact on their financial situation. As rental prices rise, it can be difficult for renters to prioritize their personal financial goals.
If you continue to pay more for your rent each year, housing expenses will eat into your monthly budget and leave you with less money to pay for other expenses and make regular contributions to your savings account.
Five ways to fight sky-high rents
The good news is that you may be able to take some steps to better deal with higher rental costs. Here are some ideas.
1. Consider finding a roommate
If you have extra space, you may want to find a roommate to share your living space and rent. Another option is to move into a house with other roommates when your current lease expires. While it can be a big adjustment to transition from living alone to living with others, sharing the expense can be a win-win for everyone.
2. Get a part-time job or a scramble
If your schedule allows it, getting a part-time job or side hustle can be a great way to boost your income. When you are able to supplement your monthly income, it will make it easier to pay rent and give your budget more wiggle room.
3. Negotiate with your landlord
If your rent goes up, you might want to try negotiating with your landlord. If you have been a responsible tenant and have always paid your rent on time, your landlord may be willing to work with you and only increase your rent by a small amount. Although there are no guarantees, it’s worth asking.
If you can afford to pay rent but feel like you’re living paycheck to paycheck, see if you can cut some additional expenses. For example, getting rid of a streaming service you barely use or working out at home instead of at the gym could free up some cash.
5. Consider changing your living situation
Although you are used to living in a spacious rental, you may be able to save money by adjusting your current living situation. For example, moving into a studio or finding a one-bedroom apartment with all utilities included can help you save more money.
Hopefully tenants will see some relief in the coming months. But for now, many renters are struggling to afford higher rental fees on top of rising food, gas and living costs. Life is more expensive and seems to be getting more expensive every day.
Looking for tips on how to save more money and improve your spending habits? These personal financial resources can be useful.
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