iCrowd Newswire - Aug 27, 2020
Unemployment insurance (UI) isn’t enough to pay rent in most major U.S. metros, according to a new report from Real Estate Witch, an online real estate portal.
The study found that of the 109 largest metros in the U.S., residents of just 12 can afford rent for a two-bedroom apartment on top of basic expenses:
- Springfield, MA
- Worcester, MA
- Spokane, WA
- Toledo, OH
- Dayton, OH
- Cleveland, OH
- Akron, OH
- Des Moines, IA
- Cincinnati, OH
- Columbus, OH
- Scranton, PA
- Pittsburgh, PA
Although those metros are affordable on UI, people in just two (Springfield and Worcester, MA) have more than $500 left over per month for savings, emergencies, healthcare, and other necessities.
South Least Affordable on Unemployment Insurance; Northeast Most Affordable
The South may have a comparatively lower cost of living, but it’s the most unaffordable region on UI.
Average UI payments in the Northeast are $1,738.32 per month, followed by the Midwest ($1,311.18), West ($1,249.65), and South ($870.81).
These rankings directly correlate with people’s ability to pay rent: Those in 65% of Northeastern metros can afford a studio apartment on UI, compared to 42% of Midwestern, 25% of Western, and just 15% of Southern metros.
California, Florida Metros Among Most Unaffordable on Unemployment Insurance
UI doesn’t cover food, transportation, and rent for a studio apartment in 73 of the 109 metros analyzed.
The top 10 metros where residents can’t afford a studio apartment on UI are:
- San Francisco, CA
- San Jose, CA
- Washington, DC
- Oakland, CA
- New York, NY
- Miami, FL
- Honolulu, HI
- San Diego, CA
- Fort Lauderdale, FL
- West Palm Beach, FL
Residents need an average of $1,600 in additional unemployment benefits to afford rent and other basic necessities.
About Real Estate Witch
Real Estate Witch is a web property of Clever Real Estate, the online platform that connects home buyers and sellers with top-rated agents at a discount rate.