Report: Detroit Among 6 Toughest Cities to Save Money
DETROIT — How hard is it to save? That depends on many things and where you live is one of them. According to a new study that analyzed 50 large cities around the United States, Detroit is one of only six where homeowners cannot afford to save.
PropertyShark teamed up with RENTCafé for a joint study, looking at the top 50 largest cities (but note that Manhattan, Brooklyn and Queens have been considered individually) where homeowners and renters can save the most money after paying their living expenses.
It turns out that U.S. homeowners in 44 out of the 50 cities we analyzed can put some money aside at the end of the month. Detroit is not among the 44 cities where homeowners can save money at the end of the month though. After covering housing and living costs each month, homeowners in Detroit are left with a $905 hole in their pockets, the study found.
Here are some of the key takeaways:
- Only homeowners in Miami have a more difficult time saving money than those in Detroit since at the end of the month they might be left with $1,219 in debt, if they don't cut down on expenses
- Renters in Detroit fare worse than homeowners – after rent payment and covering living costs they're left with $1,321 in debt
- You can save more than 4.5k/month in Manhattan, $3.5k in San Jose and $2.6k in San Francisco if you're a homeowner.
- Renters in Virginia Beach can save the most money ($883), while renters in Brooklyn and Boston have the hardest time out of the batch, with a $2k+ debt/month
Homeownership and saving
In Miami, Detroit, Cleveland, and Philly, homeowners struggle to save. Memphis and New Orleans also fall in this category, although spending below the median costs helps you achieve a sustainable living, the study said.
Miami sits at the bottom of the list, with very low median household income ($4,241) compared to similar cities and living costs exceeding $4,274. Adding housing costs to the mix ($1,186), monthly expenditures leave the average Miami homeowner with a debt of $1,219 each month. With living costs already higher than the median income, you'd have to drastically cut your expenses to afford living in the city.
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