{"id":14795,"date":"2019-12-11T11:16:07","date_gmt":"2019-12-11T17:16:07","guid":{"rendered":"https:\/\/theamericangenius.com\/housing\/?p=14795"},"modified":"2019-12-11T11:16:07","modified_gmt":"2019-12-11T17:16:07","slug":"small-metros-have-cheaper-homes-but-buyers-may-still-be-short-on-funds","status":"publish","type":"post","link":"https:\/\/theamericangenius.com\/housing\/real-estate-marketing\/small-metros-have-cheaper-homes-but-buyers-may-still-be-short-on-funds\/","title":{"rendered":"Small metros have cheaper homes, but buyers may still be short on funds"},"content":{"rendered":"

When I told my parents how much my partner and I would be paying for rent at our new apartment, they quickly pointed out that I could purchase a home for that kind of money in my hometown.<\/p>\n

Indeed recently published a study where they determined which cities have the highest salaries after accounting for the cost of living, an adjusted salary. Every city on the list is a small or mid-sized metro area which is why they dubbed their findings, \u201cthe small-city advantage<\/a>.\u201d No surprise to me, my hometown made the list.<\/p>\n

My parents are right, I could literally buy a home for the amount of money I pay in rent every month to live in a large metro area. But the equation that determines where I, and many other workers should live, is more complex than salary minus housing.<\/p>\n

Indeed\u2019s study also shows that bigger metros have faster job growth and lower unemployment compared to these small to mid-sized metros. This is why the number one city on their list, Brownsville-Harlingen, TX, also has a higher unemployment rate than the national average. Some of the other cities on the list are Fort Smith, AR-OK, Toledo, OH, Laredo, TX, and Rockford, IL.<\/p>\n

These areas are cheaper to live in, in part, because they may not offer the kind of job opportunities, and therefore social mobility, you see in larger metro areas<\/a>. Sure, I could make my money go further in my hometown, but the chances of me finding a job in my industry there are smaller.<\/p>\n

Your field of work does matter when considering whether or not the \u201csmall-city advantage\u201d could work for you. If you work in tech or finance, two traditionally high-paying fields, then this advantage doesn\u2019t apply.<\/p>\n

\u201cBefore adjusting for living costs, typical technology salaries are 27% higher in two-million-plus metros than metros with fewer than 250,000 people. Even after adjusting for those costs, tech salaries are still 5% higher in the largest metros than in the smallest ones,\u201d finds Indeed.<\/p>\n

If a huge tech company offering thousands of high-paying jobs moved into a city like Brownsville-Harlingen, TX, over time it would get more expensive to live there. This is why people were freaking out so much when Amazon was trying to decide where to locate HQ2. It\u2019s the hamster wheel that is currently driving income inequality in some of America\u2019s largest major metro areas.<\/p>\n

Finding the right place to call home is never going to be a single factor decision. Yes, salary is a huge factor, as is the cost of living, but there are also lifestyle factors to consider. What kind of opportunities would you have in this city? How much will it cost to move there? How will this effect the other members of your household?<\/p>\n

It\u2019s nice to play the \u2018ditch the corporate world and buy a country house\u2019 fantasy after a long day at work, but the reality is far more complex.<\/p>\n","protected":false},"excerpt":{"rendered":"

(REAL ESTATE MARKETING) New study finds that small to mid-sized metros offer cheaper houses, but unfortunately the available jobs aren’t giving buyers enough income.<\/p>\n","protected":false},"author":337720,"featured_media":14797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"wds_primary_category":0,"footnotes":"","jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[95],"tags":[1896,109,1234],"class_list":["post-14795","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-marketing","tag-metros","tag-real-estate-marketing-2","tag-real-estate-news"],"jetpack_featured_media_url":"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2019\/12\/white-and-red-wooden-house-with-fence-1029599-1.jpg","jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/14795","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/users\/337720"}],"replies":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/comments?post=14795"}],"version-history":[{"count":5,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/14795\/revisions"}],"predecessor-version":[{"id":14805,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/14795\/revisions\/14805"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media\/14797"}],"wp:attachment":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media?parent=14795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/categories?post=14795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/tags?post=14795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}