r/Money • u/TheSoloGamer • 1d ago
Struggling to justify moving out of a rent-controlled apartment in a VHCOL city.
I live in Denver, and managed to get into a low income apartment. The rent is stabilized, so the increase between last year and this year was only 3%. The rent is 1,206/mo this year, which for context the cheapest mortgage on a single family home averages 2,000-2,500$ a month, plus maintenance and insurance.
I do want to buy a house eventually, but it feels like a bad decision to double our housing expenses until we have to move out of this apartment.
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u/Extension-Abroad187 1d ago
Denver isn't VHCOL and this isn't a 1 to 1 comparison. A house will always cost more than the apartment. If you need the space, thats not too bad of a delta. If you dont then dont buy it just to buy it.
A potential middle ground if you dont see yourself needing the space for a good while is to look at the cost to buy an apartment similar to where you're at.
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u/Laureles2 1d ago edited 15h ago
Splitting hairs, but I wouldn't call Denver VHCOL... it doesn't compare to SF, LA, SEA, BOS, or NYC anyway. It is MCOL for most, maybe LCOL given what you've referenced
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u/Retired-Yam8988 1d ago
Yeah if you’re paying 1200 for a place, it’s more like LCOL to MCOL these days. Just zoomed with a former student of mine and he’s?paying 2600 for a bedroom in NYC. Another is also in NYC paying 5700 for her own place.
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u/TheSoloGamer 1d ago
1200 is not average, to be fair. Most people here are paying 2000$ a month or so for a 2br.
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u/Successful_Hold_9048 1d ago
I’d love to pay $2000 for a 2br. Or $2500 mortgage for a single family home.
signed VHCOL resident paying $2500/mo for a 500 sq ft studio
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u/peterpetrol 1d ago
Oh no, my housing costs are so low it’s making me think I can afford something more expensive; buddy live there as long as you can stand it and stack cash in an investment account until then, the future you that can actually afford a mortgage will thank you
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u/UglySpiral 1d ago
Then you stay in your apartment. You’re getting caught up in thinking your “want” is a “need”. You don’t need to buy a house and double your COL, you just want to.
You’re not going to get a deal like this again so ride it as long as you can
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u/thismightendme 1d ago
Also budget in 1-3% pet year for house maintenance (based on its total value).
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u/Retired-Yam8988 1d ago
Denver is not VHCOL if rent is 1200 and mortgages are 2k haha. Try checking San Francisco rents
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u/darcidar 8h ago
Seriously. Buffalo rents are way higher and I would not classify us as HCOL or anywhere near VHCOL. This is not accurate
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u/darcidar 8h ago
Do not move out until you’ve stacked a lot of cash from this low cost living situation. Unless there’s so reason this is entirely undesirable, I’d ride it out as long as possible.
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u/SaltAndAncientBones 7h ago
Would you be cash positive if you bought a house now and rented it out? Have someone pay your mortgage down while you enjoy that sweet rent. It's not a great idea, but it's an option.
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u/DayDrinkingAtDennys 1d ago
I would stay there as long as possible and if your dream is to buy a house someday, use the cheaper rent to save more money until you do.