Ask Yourself These 3 Questions Before Moving From a Small City to a Larger One

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Ready to move to a large city? Read on to see if that’s the right choice for you. 

Living in a smaller city has its benefits. You might enjoy access to amenities like parks and cafes without having to spend a small fortune to put a roof over your head.

But there may come a point when you’re ready to move from a small city to a larger one. And it’s important to run through these key questions before taking that leap.

1. Can I afford a home there?

Housing tends to be expensive in large cities. So if you make a move, you might end up having to take on a very large mortgage loan or commit to heftier rent payments than you’re used to.

As an example, RentHop reports that the average cost for a studio apartment in New York City is a whopping $3,450 per month for a rental. And if that number shocked you, you probably don’t want to know the average cost to buy an apartment in NYC. (Castle Avenue Team says for a studio, you’re looking at an average of about $968,000. Talk about a giant mortgage.)

As a general rule, your housing costs should not exceed 30% of your take-home pay. This holds true whether you rent your home or own one. And if you go the latter route, that 30% should include all of your recurring housing expenses, like homeowners insurance and property taxes. It should also include any monthly homeowners association (HOA) or condo fees you’re on the hook for.

Of course, if you’re moving to a city where public transportation is quite robust and your transportation expenses will therefore shrink significantly, then that might give you enough wiggle room to spend a little more than 30% of your take-home pay on housing. But either way, you’ll need to look at prices and make sure you can afford that housing market.

2. Am I prepared to live in a smaller home?

Whether you’re renting a home or buying one, housing tends to be more expensive in larger cities than smaller ones. So if you move, you might have to give up some square footage. And that may be a problem if you’re used to having more space.

What’s more, if you work from home, you may have a more difficult time doing so in a smaller home, even if you happen to live alone. It’s one thing to be able to take breaks by moving from your office to your kitchen or bedroom. But if all you can afford in a larger city is a studio apartment, working from home might rapidly lose its appeal when you find yourself staring at the same walls hour after hour.

3. Can I afford to actually take advantage of the amenities and nightlife?

One of the nice things about living in a large city is having access to things like great restaurants, theater, concerts, and more. But if you’re going to be spending so much money on housing that you won’t have any left over to do those things, then a move of this nature may not be worth it.

Of course, on the flip side, moving to a larger city might put you in a position where you’re able to boost your income. That might help you better afford more expensive housing and nightlife. But make sure you’ll be able to actually enjoy the city you’re looking to reside in. It would be a shame, for example, to move to NYC only to spend your nights locked inside your studio eating ramen noodles because you can’t afford to dine out or indulge in a show on occasion.

Moving from a small city to a larger one might open the door to new career opportunities and help you enjoy a better quality of life. But consider these points carefully before making your decision official.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has positions in Citigroup. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 Read More