There are several reasons why renting is more feasible for Americans right now than buying. For one thing, many millennials are younger and not quite sure about where they want to live for the long term. People are taking longer to find their permanent careers. Real estate prices are also rising, meaning that many people are priced out of the areas they would want to buy in, even in the best of circumstances. But the biggest issue is that many Americans are dealing with student loans, whether they’re still studying or out of school.
Student loans can be financially crippling; but if you play your cards right, renting can still be an option for you. As of 2016, about 65% of households led by people under 35 rented, compared to 57% in 2006. Most of the real estate for students is made up of rentals, a few current students or students fresh out of college can afford to buy. With that being said, let’s look into how you can balance that rent with paying off your student loans.
1. Get A Roommate
In some cases, you may be better off looking at real estate for students with multiple bedrooms, rather than one. A single-bedroom apartment may be difficult for you to afford. But if you rent one with multiple bedrooms and split it with a roommate, the rent may be more affordable. Some landlords offer rental apartments by the bedroom outright. In other cases, you may want to sublet an apartment.
2. Stream, Rather Than Paying for Cable
It’s understandable if you want entertainment in your apartment. You don’t necessarily have to give this up just because you’re managing student loans. Essentially everyone today has to purchase internet packages, especially if you work from home. It may be less expensive for you to pay for streaming services on top of that, compared to paying for cable.
3. Take Public Transportation
Rather than buying a car and making payments on it (along with the cost of gas and insurance, as well as parking permits), you could take public transportation. You can typically buy passes for public transportation, and take buses or metros depending on where you live.
Cutting costs takes an effort. But if you’re careful, you can pay for an apartment while balancing student loans.