Dallas Multifamily Goes Smaller Compared With Five Years Ago

In Dallas, a 626-square-foot apartment can be had for $1,500 this year, which is 255 square feet less than in 2014 (at 881 square feet), making it the most affordable US city for renters.

Weinberger says New York and San Francisco rents are increasing at a slower pace compared to other cities.

DALLAS—For those who are put off by mortgage payments, some are better off renting, as it can take decades to save up for a home in New York City, San Francisco, Seattle or Los Angeles. At this point, it’s fair to ask why are US cities so expensive?

The reality is that home prices are rising around the world and the cost of living is going up, both in and outside the United States. On that note, PropertyClub looked at how the biggest cities in America compared to other cities across the globe to get a better picture of the situation.

The study shows how much $1,500 could get for renters in the world’s top cities today versus five years ago. PropertyClub looked at the differences among the top 50 global cities ranked by AT Kearney’s latest index to see which cities are the priciest and which are the most affordable for renters.

For example, in Dallas, a 626-square-foot apartment can be had for $1,500 this year. That’s 255 square feet less than in 2014 (at 881 square feet), making it the most affordable US city for renters. And, based on the average rent for a one-bedroom apartment, six of the priciest 10 cities in the world are located in the US.

In San Francisco, $1,500 would get just 261 square feet in 2019, 58 square feet less than in 2014, making it the priciest global city for renters. Conversely, in Buenos Aires, $1,500 can rent 3,308 square feet in 2019, making it the most affordable city for renters.

“Rents in the US are skyrocketing with every city on the list except Houston seeing prices rise,” Andrew Weinberger, CEO and founder of PropertyClub, tells GlobeSt.com. “While New York City and San Francisco top the list in terms of prices, one saving grace for renters is that rents are increasing at a slower pace compared to cities like Dallas, Boston, Seattle, Atlanta and LA. It’s also more common to find rent concessions like a free month’s rent in cities like New York, which will inflate rent prices on paper.”