Affording to Live in Major Cities: Myths and Realities

It's often assumed that living in a major city is prohibitively expensive. However, the reality is more nuanced. While property prices are indeed higher, factors like income levels, cost of living, and access to support systems in cities offer unique advantages that should not be overlooked.

Why Do You Assume It’s More Expensive to Live in a Major City?

Property prices in major cities are certainly higher, but so too are incomes. More importantly, city life offers a range of benefits that mitigate the financial burden. For instance, transportation costs are often significantly lower in cities than in rural areas, where cars and their associated expenses can be a major financial drain.

Transportation Costs

Public transportation is a stark contrast to private transportation. In many cities, a simple bus pass can cost far less than owning and maintaining a vehicle. Apart from significantly lower costs, public transportation offers a more efficient and often stress-free mode of travel, especially during rush hours. Moreover, when it comes to mobility, public transportation often connects residents to more opportunities, whether it be job interviews, professional development, or cultural events.

Job Opportunities

The availability of job opportunities in major cities also contributes to a more comfortable living situation for those facing financial challenges. A simple yet powerful example is my neighbor who, in need of a better life, took a job as a tram driver. This job came with free training, job security, and protection from layoffs, offering him a stable and fulfilling career path that was not available in his rural home. Many cities have similar job opportunities that can dramatically improve someone's financial and social situation.

Social and Financial Support Systems

Cities also offer a wider array of social and financial support systems, making life more bearable for those on a fixed income. Soup kitchens, religious charities, public housing, and food banks are just a few of the resources that can help bridge the gap between income and expenses. Additionally, cities often provide more avenues for job training and addiction treatment, helping residents overcome personal challenges and improve their quality of life. These resources combine to support a more stable and sustainable lifestyle.

Personal Anecdote: My Brother in Atlanta

I can draw from a personal experience to illustrate the point. My older brother moved to Atlanta in 1979 and bought a home owned by the Red Cross for around $15,000. He lived in the same home for 35 years and passed away in 2014. When I sold the house in 2014, it was worth close to $1 million. If the home looked the same in 2014 as it did in 1979, it goes to show that sometimes the value of a home lies more in the stability and permanence of ownership.

Many older residents in major cities share similar stories. They purchased their homes at a time when they could afford it, became owners, and as a result, have the financial means to live comfortably in the city despite a fixed income. These individuals have been part of the long-term urban fabric, adapting and thriving within the dynamic environment of city life.

The Two Housing Markets in Major Cities

Another misconception is that the current prices of homes and rentals reflect the actual costs faced by residents. In reality, there are two distinct housing markets in major cities: one for newcomers and one for long-term residents. For example, in Toronto, if one has no steady income, they can secure a unit in the cooperative complex for about $100 per month, which covers utilities and maintenance.

Cooperative Housing

Cooperative housing offers a particularly affordable option. For instance, the cheapest units have no subsidy and cost about $850 per month. With a subsidy, some units cost around $100 per month. Given the long waiting list (typically 2-3 years), these housing options are in high demand and provide a stable living environment for those in need.

Homeownership

Homeownership in cities also offers significant advantages. My parents bought their house for $13,000 in 1956, which they sold for $940,000 in recent years. Despite the increased home value, my mother experienced financial struggles later in her life but never faced the need to move out. This illustrates how long-term home ownership can provide financial security and stability, especially as property values increase.

Conclusion

While the financial landscape of major cities may seem daunting at first glance, there are numerous advantages that can help people afford to live in these bustling areas. By looking beyond the initial cost of homes and rentals and considering income levels, transportation costs, job opportunities, and access to financial support, it becomes clear that living in major cities is often far more manageable than it appears. These factors combine to make city life a viable and sustainable option for many.