For many, it’s “Merry Debtmas.”
An analysis of Census, labor, and retail spending data shows that the holidays puts renters in debt for the year once living expenses, the Thanksgiving turkey dinner, and Christmas presents are added in.
The report from RENTCafe, provided to Secrets, said the average debt at the end of the year for renters is $400.
But it’s much worse in expensive cities, such as New York City where the average holiday hangover is $4,200. The total expense for November and December in NYC is $7,600, said the analysis.
In cheaper cities such as St. Louis, or those where pay is high such as Seattle, renters still have some cash in the bank, the study of data from the Census, Bureau of Labor Statistics, National Retail Federation, and Yardi Matrix found.
The highlights from the study:
- The average American renter household cannot afford the holiday season without $400 in savings.
- The average American family ends the season with a negative balance after spending about $5,800 on rent and other living expenses as well as an additional $1,100 on winter expenses such as gifts and family dinners.
- Out of the 20 largest U.S. reviewed, half are not that merry — renter families here will need savings for the winter holidays, with New York (-$4,200), San Diego (-$1,700), and Los Angeles (-$1,600) leading the way.
- On the flip side, renters in nine metro areas are actually left with some money for the piggy bank after the holiday expenses — from a considerable $1,700 in Seattle to $100 in Houston. Minneapolis metro renters are the only ones to end the year with exactly $0.
[Also read: TSA bracing for busiest Christmas, New Year’s ever: 41M expected to board flights]
