Cost of living plays a pivotal role in demand for apartments. Tenants take the cost of living as a main factor when deciding where to live and how much to pay for rent. As someone who owns multiple apartment buildings across the U.S., it’s crucial to understand where the desirable cities to live are: those with access to jobs and entertainment, but also affordable living options.
I always try to focus on the more affordable yet popular cities. I’m not saying that buying real estate in expensive cities is a bad investment strategy; but rather highlighting those markets, because rents there tend to be higher than affordable markets. This ranking is based on the disparity created between average rental rates and average monthly income.
Here are the top 10 most expensive cities in the US:
10. Seattle, WA
- Average 1 BR Rent: $2,049
- Average Household Income: $85,936
9. Washington, DC
- Average 1 BR Rent: $2,347
- Average Household Income: $82,192
8. Boston, MA
- Average 1 BR Rent: $2,150
- Average Household Income: $66,758
7. San Jose, CA
- Average 1 BR Rent: $2,693
- Average Household Income: $96,662
6. San Diego, CA
- Average 1 BR Rent: $2,236
- Average Household Income: $98,632
5. New York, NY
- Average 1 BR Rent: $2,650
- Average Household Income: $61,816
4. Miami, FL
- Average 1 BR Rent: $1,995
- Average Household Income: $35,221
3. Honolulu, HI
- Average 1 BR Rent: $1,721
- Average Household Income: $31,146
2. San Francisco, CA
- Average 1 BR Rent: $3,600
- Average Household Income: $102,300
1. Los Angeles, CA
- Average 1 BR Rent: $2,728
- Average Household Income: $58,043
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About Ellie Perlman
Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.