What a roommate saves you in San Jose and Northern California cities – CBS Sacramento

SAN JOSE, AP — With average housing costs accounting for nearly 35% of all household spending in 2020, many renters nationwide are looking for roommates so they can afford short-term financial obligations, save for long-term financial goals or both. With that in mind, SmartAsset analyzed the data to identify and rank cities based on where living with a roommate saves you the most.

To find out where having a roommate will save you the most money, we compared the average cost of a one-bedroom apartment to the average cost of splitting a two-bedroom apartment in 50 of the largest US cities. For more details on how we found and analyzed our data, read the Data and Methodology section below.

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This is SmartAsset’s eighth annual roommate savings study. Read the 2021 version here.

Main conclusions

  • Savings are on the rise. The 2021 edition of this study showed that living with a roommate would net you an average savings of $493. This year, those savings have grown to $517. But that’s still slightly below the average savings in 2020, which was $524.
  • Roommates save the most in big cities. Major cities like New York, Boston, and San Francisco occupy the top three spots on this list. Roommates in these cities can save over $800 per month.

Where a roommate saves you the most 1. New York, NY

New York City reclaims the top spot in 2022, with monthly savings for an average roommate of $1,334. This represents a considerable amount of $16,008 per year.

2.Boston, MA

One bedroom in Boston will cost you an average of $2,376, while a half of a two-bedroom is only $1,393. That’s a monthly savings of $983, which works out to $11,800 per year.

3. San Francisco, California

Getting a roommate in San Francisco will save you an average of $867 per month. A one-bedroom rent costs an average of $2,732 and a two-bedroom rents an average of $3,731. Total savings amount to $10,399 per year.

4. San Jose, California

San Jose is a major hub for tech workers. Roommates sharing a two-bedroom will pay an average of $1,369 instead of $2,201. That’s a monthly savings of $832, which works out to $9,982 per year.

5. Oakland, CA

Oakland is more affordable than some Bay Area cities, but it’s still pricey. Getting a roommate can save you $701 per month, which comes to a total of $8,412 per year.

Where a roommate saves you the least 1. Wichita, KA

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Renting a bedroom in Wichita will only cost you around $612 per month, while sharing a bedroom for two costs an average of $386 per person. That’s a savings of $226 per month, which works out to $2,710 per year.

2. Tulsa, okay

In Tulsa, you can save $268 per month by getting a roommate, which works out to $3,222 per year. A bedroom in Tulsa averages $717 in monthly rent, while a bedroom costs $897.

3.Tucson, AZ

A bedroom in Tucson will cost you $810 per month on average. Splitting a two-bedroom will cost an average of $530 per person. That’s a savings of $279 per month, which works out to $3,349 for the year.

4. El Paso, TX

The average monthly rent for a bedroom in El Paso is $758. But splitting a two-bedroom will only cost you $469 on average. That’s a savings of $289 per month, which translates to $3,471 per year.

5. Albuquerque, New Mexico

Roommates sharing a two-bedroom room will save $297 per month, which works out to $3,561 per year. A one-bedroom apartment costs an average of $813 in monthly rent, while a two-bedroom apartment costs $1,032.

Data and methodology

To find the cities where a roommate saves you the most, SmartAsset looked at data from 50 of the largest US cities. We compared them on these two measures:

  • Average rent of a T2. The data comes from Zumper and covers monthly rental prices from February 2021 to January 2022.
  • Average rent for a two-bedroom apartment. The data comes from Zumper and covers monthly rental prices from February 2021 to January 2022.

Using this data, we measured how much a person could save in each city by upgrading from a one-bedroom apartment to a two-bedroom apartment. To do this, we compared the cost of a two-room apartment to half the cost of a two-room apartment for each city, to take into account shared living. We ranked the cities according to those with the greatest savings.

Tips to save money on housing

  • Thinking of buying a seat? For renters with roommates looking to make the leap into homeownership, knowing exactly how the purchase stacks up over time is the first step. SmartAsset’s free Rent or Buy Calculator can help. It compares the costs of renting and buying, showing when buying can be profitable.
  • A financial advisor can help you achieve your housing goals. SmartAsset’s free tool connects you with up to three financial advisors who serve your area, and you can interview your matching advisors for free to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, start now.

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Copyright 2022 The Associated Press.

Bernard P. Love