Easy Ways to Save in 2024: Housing Costs
Rents in Dallas fell 1.6% in 2023, which is a relief for many, however in 2022 rents increased 4.8%. Where rents rise and fall inconsistently, it can be difficult for many to plan for the future, let alone the next month. If you are trying to save for a home, this complicates plans even more. Homebuying is an excellent way to stabilize your annual and monthly costs and is a goal for many, but may seem out of reach. Affording a home may become a burden with increases in property taxes. We would like to offer resources from our partners and explore new ways to save.
Negotiate Rent and Lease Terms:
As a renter you have rights. If you're renewing your lease or searching for a new rental, you are well within your right to negotiate. Depending on how competitive your market, property owners may be open to discussions on rent prices or lease terms. Polite and respectful negotiations can lead to significant savings. Here are some tips and your rights as renters.
Refinance Your Mortgage
As interest rates fluctuate, it can be a good time to think about refinancing your mortgage. You may qualify for a lower interest rate that leads to long term savings, or can qualify for new terms which reduce your monthly spending. Reach out to local lenders to explore options and see if you qualify for a more favorable rate or terms.
Energy-Efficient Upgrades:
Investing in energy-efficient upgrades for your home can mean big savings on monthly bills. These do not require lots of money upfront either. Simple changes like switching to LED bulbs, installing a smart thermostat, or sealing gaps in doors and windows can make a difference in your monthly bills. We also outlined ways for homeowners to save in our latest blog here.
Dallas Homeownership Programs:
There are grants and homeownership programs specific to Dallas that may offer down payment assistance, more favorable mortgage rates, or other incentives for those who qualify. These initiatives can significantly reduce your upfront and ongoing housing costs.
Affordable Home Insurance:
Regularly reviewing your home insurance policy and being aware of rate changes is essential to managing your housing budget. Loyalty does not always translate to the best savings in this market and some insurers are offering more competitive rates. The new year is a great time to reassess your home insurance policy.
Exploring More Affordable Neighborhoods:
Dallas offers a lot of diversity and each neighborhood has unique benefits and flavor. When you are thinking about renting and potentially buying, understanding the rental and purchase landscape is important, but also the ease and cost of transport, and school districts. There are a number of neighborhoods where living is more affordable, walkable, and good for commutes that you might not be aware of. Real estate websites offer ratings systems and average rental prices to help you make informed decisions. See here, https://www.redfin.com/blog/affordable-dallas-suburbs/
Roommates, Co-Living Spaces, Multigenerational Living
Sharing living expenses or opting for co-living spaces is a practical way to split the costs of rent and utilities. This reduces your financial burden, and also can ease with expenses in food and utilities. Shared living is definitely not just for those studying or choosing to live in neighborhoods that are more expensive, 32% of college graduates are moving back in with parents.
Being proactive in your approach to housing costs through exploring available resources, making strategic decisions on where you live, and how you are financing can make a big difference in your overall housing budget. Whether you're a homeowner or renter, the key is to stay informed, negotiate when possible, and continuously seek opportunities to optimize your housing expenses. More resources on financial literacy are available below.
https://www.dallasfed.org/educate/pfl
https://occc.texas.gov/consumers/consumer-education/guide