A Reminder of How Expensive Some Cities Are

I've noted how I like to watch House Hunters, so when I saw this post about why watching it is bad for the author's finances, I had to check it out.

The article is quite humorous as he points out the difference between home costs and features in various places shown on the TV show and what they cost in New York City. Here's a set of quotes he highlights from a couple looking for a place in Texas:

My (least) favorite quotes from the first house ($550,000):

• It's not as big as it seems.  It's not quite 4,500 square feet.
• It's only 4 bedrooms, but there are a lot of "extra" rooms.
• I'm a little upset that it doesn't have a pool.
• When referring to the wine "closet": "It's no cellar, but it will do."

He then contrasts this with what someone looking for a place in NYC might ask:

By comparison let's list the top questions you ask and statements made about $500,000 houses apartments in my neck of the woods:

Do the roaches come with the apartment or are those extra?

Is that an airplane or a train passing by?  (the answer is most likely "both")

The following is all stated from the same physical location while spinning in place:

• Here is the "kitchen area."
• There is the bedroom area.
• There is the living area.
• The bathroom area is in the kitchen area.

Just so you know, the old lady across the hall cooks a lot of garlic and curry-based dishes - for her twelve cats.

And, of course, taxes and maintenance are another $2,000 per month.

It's a funny, funny read. Check it out if you have time.

The serious part is that the post highlights a fact we all know (and I "harp on" from time to time): where you live has a big impact on your finances over the course of your life. Those in especially high cost-of-living cities need to be sure they consider the real and substantial costs of living in a particular city as part of their overall financial planning/strategy process.

Comments

[billyjobob]

Watch " Selling New York ". It's an eye opener. Like House Hunters for the wealthy. Most of the apartments/homes go for a number that makes me wonder.... Why buy a place in New York when you could just take that money and retire very comfortably almost anywhere else?

[Chris]

I moved from DC to Baltimore (I now commute) to avoid paying outrageous living expenses. I was able to buy a 3BR/2.5BA house within walking distance of a commuter train station in a relatively safe part of the city for a monthly payment less than the cost a 1 bedroom apartment in a not-so-great section of DC.

[Paula at Afford Anything]

LOL -- my apartment is so small you can tour the kitchen, living area, balcony and look into bedroom by standing in one spot and swirling ... and I don't even live in a hip, swanky city like NYC (I'm in Atlanta). Oh yeah, and mine also has cockroaches. Lots of 'em.

In October I'm moving to a HUGE place ... 1,500 sq. ft. It even has a HALLWAY!!

[KT]

This is why I wish income levels for tax returns were tied to cost of living. life in nyc is not cheap.

[Mom24]

Also why people making "good" incomes are having a hard time....tuition, day care, food, everything is so much more expensive (Boston).

[Carol]

I live in a smaller city in CT less than one hour to NYC. When I read the NY Times real estate section, I go into shock. How on earth does a middle class person live decently, much less well, in that city? I guess only the top-tier actors and finance folk can live there.

[texashaze]

This is exactly why I recently turned down a job on the east coast which would have doubled my salary.... life is good in Texas!

[Susan]

Ahhh, so good to hear similar comments from other city dwellers! Here in Los Angeles, it is a favorite (or frustrating?!?) pastime to yell at "House Hunters" and make those same comments about how much we'd love a kitchen that was large enough for more than one person to be in.

Seriously planning for a move soon.