By Holly Welles

Special to the Financial Independence Hub

Are you torn between the city and the suburbs? While the city may have direct access to public transport and popular restaurants, it’s clear that the suburbs allow you to enjoy more space. Both locations have their perks: but urban life costs more, right? Maybe not. Each area has its own expenses that could affect your decision.

Here’s a quick look at the financial differences between cities and suburbs:

1.) Rent and Mortgages

Whether you want to buy a house or rent an apartment, it’s smart to weigh your options. That said, it’s almost always cheaper to buy or rent farther from an urban area. It typically costs more to live within a city’s 15-minute vicinity. In Seattle, it’s hard to find a house under (US)$600,000 unless you look at places an hour away from downtown.

The same data applies to rental expenses. However, rental costs can vary across the country, so the size and location of the city is crucial. For example, these numbers may differ if you live near a smaller urban hub like Pittsburgh or Omaha.

The last piece of the housing puzzle is size. Urban apartments and homes tend to be smaller with minimal outdoor space, meaning the price per square foot will be higher. Meanwhile, suburban residences will likely be larger and offer yards for renters and homeowners to enjoy. It’s important to consider not just how much you’re willing to pay, but what you’re paying for: a prime city location or more private space.

2.) Entertainment and Groceries

Generally, extra expenses like entertainment and groceries cost more if you live near a city. However, it’s often not as straightforward as that: because cost also depends on availability and choice. Cities with large populations might have a higher variety of grocery stores, but they also might lack access to fresh food. The best way to evaluate cost is not just to look at grocery prices, but also the distance to the nearest store and the number of farmers’ markets.

We can apply the same idea to entertainment. While dining out at bars and restaurants will likely be more expensive in a metro area, there are also more food stands and takeout options for those looking to eat more cheaply. Theatres and venues will charge for tickets, but living in the suburbs means you might have to travel far to attend these events in the first place.

There’s no hard and fast rule when it comes to food and entertainment costs. If you like to see plays and musicals with friends, think about those activities specifically. Does it make sense to drive 30 minutes from the suburbs to see productions throughout the year? Your choice is all about your wants.

3.) Transportation

It costs less to travel throughout cities. Most urban locations have public transport systems that you can access with a monthly pass. You won’t have to own a car unless you need to drive to places a bus or subway doesn’t reach. This perk cuts down on vehicle-related expenses like gas, maintenance and insurance. Most cities are also generally walkable, so you won’t always need to rely on public transport. Continue Reading…