Moving to the US is a dream come true for many people. The country has always provided incredible opportunities for immigrants, and it remains one of the best places to progress your career as a young individual. However, your experience living and working in the US can differ significantly based on the city.
Local taxes, housing availability, infrastructure, and salaries are just a few factors affecting the overall cost of living. If you were to live in one of these larger cities, you would need a salary of more than $5,000 just to cover the basics.
Housing should be the first thing on your docket if you’re planning a relocation. Although the average rent in the country is somewhere between $1,700 to $1,800, an apartment in a large tech or financial hub can easily exceed $3,000. Besides housing, you must also consider the following expenses:
- Groceries and other necessities
- Healthcare and insurance
- Transportation
- Utilities
“You’ll likely have to consider entertainment as well, as you probably won’t survive on the bare minimum for long,” according to O’Grady Peyton, an international nurse agency. “Whatever the case, you must have a better understanding of these factors before moving to the country so you don’t experience a nasty surprise.”
Housing in Larger Cities
Given that many Americans have relocated to larger urban areas, housing costs have become one of the biggest expenses they have to deal with on a monthly basis. As expected, New York is the most expensive of the lot, with a median rent of $3,600. If you wish to live in Manhattan, you’ll have to fork over $4,500 each month.
San Francisco is also notorious for its rents. A large number of tech companies have made it hard to find a cheap apartment or a room in the area, with median rents being around $3,400 a month. Even if you opt for a small studio apartment, you’ll still have to pay around $2,800 each month.
We also have to mention Boston, where the median rent goes from $2,700 to $2,800. The city is known for its education and healthcare sectors, driving prices well above the national average. Given the high cost of living in the country, many foreigners opt to cohabit or rent small studio apartments.
Housing in More Affordable Cities
The good news is that there are a few amazing cities in America that offer an excellent quality of life with significantly lower rent. Not only are these areas financially suitable for foreigners, but they also offer numerous employment opportunities in some of the world’s biggest companies.
For example, Chicago is considered a great choice for anyone who wants to experience a metropolitan way of living without the over-the-top expenses. A city is known for its healthcare, finance, and consulting sectors, with average rent being $2,200 a month. This makes it a significantly better option than New York or San Francisco.
Large cities in Texas have become increasingly popular for international workers. Austin and Dallas, in particular, offer a great lifestyle with reasonable housing and grocery costs. Both of them have experienced rapid growth in recent years, with many tech startups relocating to the southern state.
Renting in these cities will cost you:
- $2,200 average rent in Chicago
- $1,900 average rent in Austin
- $1,700 average rent in Dallas
In many Texas cities, housing expenses account for 23% of household income. This figure falls below the optimal living recommendation, as it is below the 30% threshold (as long as you’re below this, you should be fine). Furthermore, you should consider relocating to even smaller cities, as you can get more value from your paychecks.
Salary Expectations Compared to Living Expenses
Salaries in America can be significantly different depending on the city and industry you work in. So, when planning to relocate to the US, you shouldn’t be solely swayed by the promised salary. Instead, you should also consider the living expenses and long-term opportunities. For example, here are the average salaries in some of the cities mentioned above.
- $5,200 after tax is the average salary in Chicago
- $5,100 after tax is the average salary in New York
- $6,800 after tax is the average salary in San Francisco
Although the average salary in San Francisco might sound great, keep in mind that the figure is offset by the IT sector. In other words, you might have a good time if you’re working in the industry, but you’ll likely struggle if employed in some of the other sectors.
Financial experts recommend that you also calculate promised benefits, as they significantly reduce your overall expenses. You should pay attention to these benefits, in particular:
- Housing support
- Relocation allowance
- Healthcare coverage
- Transportation assistance
- Tax assistance
Each of these can significantly reduce your burden once you arrive in the country.
Practical Tips to Implement
If you want to succeed in the country, you need to be very practical with your money, especially if you’re in one of the more expensive cities. A smaller financial adjustment can go a long way in reducing the financial burden.
The best way to save money is by living with another person. This can save you 30% to 50% in rental costs. Other strategies include:
- Rent outside the city center, ideally with a colleague or a friend. Otherwise, you should choose a studio apartment.
- Use public transport for the first time, and buy a metro or bus pass. Find an apartment close to your workplace to minimize commuting.
- Look for food discounts and cook at home. Limit your entertainment expenses whenever you can.
Ideally, you should create a list based on your priorities. Cut everything that you can live without to adopt a frugal mindset.
Living in the US as a Foreigner
Many foreigners are shocked by the high cost of living in larger US cities. Nevertheless, you can still make money working in these areas as long as you limit your expenses. As long as you follow our tips, especially for housing, you should have a much easier time adapting to the country.
