Living the Urban Lifestyle
Affording an urban life can be pretty expensive or inexpensive depending on how you decide to live. Since I live in Austin, Texas I’ll be gearing this discussion around that city. The City of Austin has been ranked by numerous polls and reports as a best place to live and do business.1 It has a way of life that is highly attractive to many people.
If you enjoy going out on the town to clubs, bars, or music venues on regular basis this will not be cheap. Austin, Texas, commonly referred to as the Live Music Capital of the World. Cover charges to get into clubs or venues can range from $5.00 up to and over $75 depending on who is playing and the venue location. Perhaps you would prefer not to go out and catch a live band, but to simply hang out and have a drink with some friends. Well drinking at bars is costly. At most establishments in Austin alcoholic drinks easily start at around $7.00 per drink.
Of course having fun doesn’t even take into account covering living expenses. Living immediately or near vicinity of downtown in the most desirable urban settings will set you back financially as well. While it is possible to find a garage apartment or small house (think 600 square feet with curb parking) with limited amenities that run in the $600 – $800 range these deals are not typical. Typically to live in a city such as Austin downtown, I’m talking the 78701 zip code with sky scrapers, will easily run you base rent of around $1500.00 a month. Some condos do rent for around $850 – $950 a month, but be wary if you have a car and need parking. Living in urban vicinity areas immediate to downtown, such as Hyde Park, will run you around $1300.00 a month minimum (there are exceptions to that figure). This is assuming you don’t mind a small two bedroom house, around 900 square feet or less, with potentially limited parking options. Of course you could always live large and buy a condo at the Austonian, which has prices starting around $579,000 with HOA fees at $0.64 a square foot.
A Condominium Project Underway in Austin, Texas
Cutting Costs While Living Urban:
It is possible to cut costs. If you live and work downtown you may be able to walk or bike to work and give up owning a car with all of the associated costs. You really would not even need to go without a car; check out Austin CarShare. Also if you are frugal with your budget you can still afford to go out regularly and save money. There are small condos available that would permit a person to live downtown. I know of a condominium where a couple of condos are under $100,000, and are within walking distance of the Capital; now that’s city life! The great thing about condos like these is that their HOA fees include water and electric, which makes budgeting a little easier. A quick average of HOA fees for the area is around $0.42 a square foot, so a 420 square foot condo’s HOA fees will start at $180 a month and go up depending on what amenities are included. Of course at that buying price you will be sacrificing square footage given the median home price in Austin is around $182,000, but you get to live directly in a desirable urban environment walking distance to many great locations. Of course you could chose buy a house downtown but those start around $650,000 for fixer uppers and go well in to the millions. Be sure to watch out for property taxes.
You should also consider your employer when looking to be frugal. No I don’t mean go demand a raise so you can buy that $579,000 premium condo. I am talking about saving money on having a night out on the town. If you are employed by a major or even local employer you should ask local businesses if they offer discounts. Also look into coupon providers like Restaurant.com to save money when eating out. My fiancée and I have eaten at Leaf Salad and other downtown restaurants for under $20 using coupons, so it is possible.
So overall it is possible to live in a highly desirable urban environment on a budget, or spend lavishly as your funds permit. It’s really all about personal choice, what you can afford, and whether you’re willing to trade some luxuries for an urban lifestyle.
1Reports:
USNews and World Report
Outside Online
Entrepreneur
Kiplinger.com
Brookings Institute (PDF)
Forbes:
Best Cities for Singles Lifestyle
Best Cities For Working Mothers
Austin ranked Best City for Recession Recovery
