Oops, mortgage rates did it again. After playing with your heart in September — briefly flirting below 6% — they’ve gone up five weeks in a row.
The 30-year fixed-rate mortgage averaged 6.6% in the week ending Oct. 24, an increase of 14 basis points over the previous week. A basis point is one one-hundredth of a percentage point.
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A long climb
Rates have climbed unceasingly in the five weeks since Sept. 19, when the 30-year mortgage averaged 5.89%. Have mortgage rates lost all their senses? No, they’ve been so typically themselves, falling when it looks as if the economy is slowing, and rising when the economy seems to be revving up:
Mortgage rates fell in September because investors knew that the Federal Reserve was about to cut short-term interest rates. There were “concerns about potentially weakening in the labor market,” said Lisa Sturtevant, chief economist for Bright MLS, a multiple listing service in the mid-Atlantic region.
But mortgage rates turned upward and then got lost in the game in early October, rising nonstop after the September employment report was released. That report showed better-than-expected job creation. There’s a risk that strong job growth could push wages higher as employers compete for workers, which in turn could stall progress on taming inflation. That possibility is pushing rates higher.
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Lower than a year ago
Housing economists are quick to remind prospective borrowers that mortgage rates have made a lot of progress. A year ago this week, the 30-year mortgage averaged 7.95%. It has fallen 1.35 percentage points since then.
“Even though rates have been on a recent upswing, they are over a full percentage point lower than a year ago, which has kept some home buyers in the market,” said Joel Kan, the Mortgage Bankers Association’s deputy chief economist, in a statement.
But the housing market is not that innocent: Lower mortgage rates are undermined by higher prices, taking some would-be buyers out of the market. The median sales price of an existing home was $404,500 in September, according to the National Association of Realtors. That’s 3% higher than a year earlier, when the median house cost less than $400,000.
First-time home buyers in September accounted for 26% of sales, which is on the low side, says Lawrence Yun, chief economist for NAR. “First-time buyers continue to struggle in the current environment.”
Yun holds out hope that September’s rate dip will end up lifting sales. “We know that the homebuying process is not a snap decision,” he says. “It’s a long process of searching for homes, signing the contract and going to the closing table. So it takes several months.”
Much ink has been spilled on the 4% rule, including here on The Best Interest.
The short and sweet definition? The 4% rule is a retirement strategy that suggests withdrawing 4% of your portfolio’s value annually, adjusted for inflation, to ensure your savings last for a 30-year retirement.
If you’d like to dive deeper on some nuance of the rule, read this: Updated Trinity Study and the 4% Rule.
And if you’d like to avoid the common mistakes of using the 4% rule, read this: You’re Probably Using the 4% Rule All Wrong
Today, though, I want to show you some compelling data about the optimism and conservatism built into the 4% rule.
Ultimately, you’ll see that the 4% rule comes with major risks.
All Models Are Wrong
All models are wrong?
No, not that kind of model. I’m talking about numerical models. The idea that you can use numbers and figured to represent or simulate reality. Your numbers will never, ever be a perfect representation of reality – you can’t predict the future. All models are wrong!
…but some are useful. Models are used all over modern society. One hopes that their models can “bound” reality, providing bookend scenarios to how reality might shape up (good vs. bad, optimistic vs. conservative, etc). We can use models to explain how particular variables will or won’t affect reality.
Weather forecasting is a terrific example. Meteorologists use numerical models to simulate the atmosphere by solving complex mathematical equations based on physical laws, such as the conservation of mass, energy, and momentum. These models take in data from satellites and weather stations, then simulate how the atmosphere will evolve over time.
They’re never perfect. In that way, they’re always wrong. But they’re certainly useful.
Further reading: The Madness of Forecasting
Retirement Forecasting
It’s a fool’s errand to predict the future performance of investing markets. But the 4% rule provides a numerical “bookend,” giving direction to retirees.
The hardest pill to swallow about the 4% rule is that we know it’s wrong. We just don’t know which direction it’s wrong in.
Most likely, as you’ll see below, it’s too conservative. It’s important for retirees to internalize that truth!
But there’s a possibility the 4% rule is too aggressive. And that’s a scary possibility. It means you might run out of money in retirement. Yikes.
Visualizing the 4% Rule
I used the terrific 4% rule visualizer from Engaging Data to create the charts you’ll see below. I recommend playing around with that tool yourself.
As with any modeling, the input assumptions are vitally important. I assumed:
We’re investing in a diversified 60% stock, 40% bond portfolio.Yes, this varies slightly from the 4% rule’s original assumption of a 50/50 portfolio. But 60/40 is more in line with retirement best practice.
I assumed a 30 year retirement timeline. To make the math easy, I assumed a $1 million starting portfolio. Thus, a 4% withdrawal in Year 1 is $40,000, and each future withdrawal is adjusted up for inflation.
I assumed that taxes and investment fees are included in annual spending. This is a key assumption, but one that’s often overlooked. In other words:
Are you withdrawing 4%, and then paying taxes on those withdrawals (perhaps another 0.4%), and then paying investment fees on those assets (perhaps another 0.2 – 1.5%)? That’s actually more like a ~4.5+% annual withdrawal.
Or, are you withdrawing 4%, which includes the requisite taxes and fees. Perhaps you’re only “netting” ~3.5% to spend on your lifestyle, and the other 0.5% pays taxes and fees.
I’m using the second scenario, not the first.
While the Engaging Data website does look at market history back to 1871, I don’t care too much about anything before World War 2. The American and global economic systems were far different then. I can’t cut that data out of my results, but I recommend focusing on 1950 onward.
Caveats Apply…
I’m beating a dead horse here in the world of retirement planning. There’s an asterisk on everything. But, to pre-empt any guff, let’s be clear:
The 4% rule is way more rigid than how any normal human would spend in retirement. Lifestyle variations, taxes, inflation rates, healthcare costs, and the potential for longer retirement periods make any withdrawal rule an imperfect one-size-fits-all strategy.
The 4% rule doesn’t account for Social Security, which I think is a huge mistake.
The 4% rule uses past market results to make future retirement decisions – it’s a numerical model! We know the risks involved there.
Results – How Does the 4% Rule Hold Up?
In short, the 4% rule is like playing rec league basketball with Lebron James on your team. You’ll win, and it will be overkill.
Out of the 123 unique 30-year periods we can observe, only one of them leads to “failure.” It ran out of money in Year 28 (barely a failure, at that).
The median result not only supported our retiree’s lifestyle, but also left them with $2.8 million at death. Again – that’s the median result. 30 years worth of withdrawals, and still another $2.8 million leftover. That’s overkill!
We’ve made a trade-off using the 4.0% rule. That trade-off is: in order to avoid a ~1% chance of retirement failure, are you willing to accept the 50% chance that you underspend in retirement so severely that you end up with 3x the assets at death as when you retired?”
That’s what we’re talking about here. Severe underspending. Severely not enjoying the fruits of your labor. It’s worth thinking about that trade-off. Personally, I don’t think it’s worth it. I don’t mind increasing my “failure odds” above 1% if it means I get to spend a bit more.
Another crazy stat: let’s compare the 90th percentile result against the 10th percentile result. These two scenarios are equally likely, one being on the good side of fortune and the other on the bad side:
90th percentile: our retiree dies with $6M after 30 years.
10th percentile: our retiree dies $800K after 30 years
The 10th percentile result is pretty close to, “I died with as much money as I started retirement with.”
The 90th percentile result is, “I died with 6x more money than I started retirement with.”
And they’re equally likely to happen. Wild!
While it’s important to acknowledge the one failure of the 4% rule (albeit after 28 years of withdrawals), it’s hard to walk away thinking anything other than, “The 4% rule is overkill.”
Adjust the Rate, Adjust the Timeline
So let’s play around with the numbers a bit.
Let’s extend the timeline beyond 30 years.
And let’s toggle the withdrawal rate higher.
But we should first ask – what’s an appropriate “failure” metric? The answer, by nature, will be completely arbitrary. After all, we’re using a numerical model that we know cannot be correct. Nevertheless, I vote for the following:
If more than 20% of test retirements fail, then I think our scenario is too aggressive, too risky.
If the median result spends down more than half of our retirement nest egg (e.g. dies with less than $500K after starting with $1M), then I think our scenario is too risky. Why? Because retirement research clearly shows that retirement failure is a slippery-slope/accelerating problem. If our median result is down 50% after 30 years, then many of those individual scenarios would accelerate toward near-term failure.
Timeline Failure
If we keep our withdrawal rule at 4%, but extend the timeline out to 53years (!!), then we reach ~20% of our test retirements failing.
The median scenario ends with $5.5M. The best timelines here finish with upward of $65 million.
We’re saying that a 40-year old can retire on the 4% rule and reasonably (~80% odds) expect to still have assets at age 90.
That leads me to a similar takeaway as before: the 4% rule has historically skewed toward overkill!
Withdrawal Rate Failure
Let’s go back to a 30-year timeline, but let’s now dial up the withdrawal rate above 4.0%. When do we reach one of failure criteria?
At 4.85%…
Using a 4.85% withdrawal rate, we see that:
20% of our test cases fail before 30 years, the earliest of which being after Year 20.
Our median case still has $1.7M after 30 years – more than we started with!
As a reminder, 4.85% equates to 21% more spending every year than the 4% rule. That’s a big difference in lifestyle.
Let’s Get the Median Below $1M
I want to press our luck and push the limits. What withdrawal rate does it take so that our median result has a retiree with less than $1M at death? In other words, I want to see more than half of our simulations outspending their investment growth.
The answer: a withdrawal rate of 5.2%
In this case, about 28% of our scenarios outright fail, and another 22% finish between $0 and $1M.
Let’s Get Failure to 50%
One more experiment: at what withdrawal rate do 50% of scenarios outright fail? Clearly this is too much risk to bear. But it’s helpful to use numerical models to “define your limits,” and this is just that.
The answer: a withdrawal rate of 6.25%
You’d never want to start retirement knowing that you have a 50% chance of go broke prior to death. But it’s worth understanding where the limits of withdrawal rates lie.
“But I’ve Read About 3.5%, 3%, and Lower Rules…”
Yes, some conservative retirement commentators combine multiple factors that result in low withdrawal rates like 3.5%, 3.0%, and less.
Quite simply, I think 3.5%, 3.0%, or lower withdrawal rates are simply beyond the pale. Those commentators are suffering from the crushing costs of conservative retirement planning.
Simply look at the 3.5% withdrawal rate chart below:
3.5% is a recommendation that someone chronically underspends their potential, knowing that anyone who would have done so in the past would have at worst died with the same $1M they started with (for 3.5% withdrawal rate) or at worst died with $1.6M (for 3.0% withdrawal rate).
It’s like driving at 40 miles per hour on the Interstate. “But I want to be safe!”, they clamor as normal traffic wizzes around them. Their obsession with safety causes more harm than good.
What’s Jesse’s Answer?!
My big takeaway from this fun experiment: I plan on starting higher than 4.0%, and adjusting as I go.
On one hand, I would hate to start at 4.75%, then live through an “unlucky future” and ultimately run out of money.
But I would equally hate to start at 4.0%, then live through a “normal” (or better) future, and ultimately end up with many multiples of my original nest egg at death.
The “adjust as I go” takes this into account. If I need to be more conservative for a few years, I will be. If I can press on the gas for a few years, I’ll do that too.
Quite simply, the biggest risk of the 4% rule is underspending your retirement potential. And it’s biggest flaw is its rigidity.
It’s a numerical model. And a helpful one at that. But it’s not real life.
Thank you for reading! If you enjoyed this article, join 8500+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week. You can read past newsletters before signing up.
-Jesse
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While TPO purchase volume has dipped in recent years amid a wider mortgage market cooldown, a similar drop on the retail side means neither has seen a sizable fall in market share. “What we see is between 2018 and [around] 2021, the volume of TPO purchase originations had been relatively stable,” Ige said, “but then … [Read more…]
Many landlords will only consider prospective tenants with decent credit scores. However, some private landlords who are eager to fill empty rentals quickly may advertise “no-credit-check” apartments. In other cases, smaller family-owned buildings just don’t have the same documentation requirements as bigger complexes handled by property managers or brokers. Even if the building you’re interested in does require a credit check, there may be ways to get around it.
If you have bad credit or no credit, we’ll explain all the ways you can still rent an apartment.
• Renting with bad credit or no credit is possible through no-credit-check apartments, which are often managed by private landlords who prioritize consistent rent over credit checks.
• Strategies include finding a cosigner, paying a higher security deposit, or providing proof of financial stability.
• Subletting or sharing an apartment can bypass credit checks, as these arrangements often require less documentation.
• Building credit history by becoming an authorized user on a credit card or paying bills on time could improve rental prospects.
• Being honest about credit issues and providing references from previous landlords may help secure a rental agreement.
Are There No-Credit-Check Apartments?
A handful of landlords will rent an apartment without a credit check. However, apartment hunters should approach advertised “no-credit-check apartments” with caution. The term can sometimes be code for “these units are problematic,” or “this landlord is difficult,” or even “this is a scam.”
Sometimes, however, private landlords in smaller buildings just don’t see the need for credit checks. They don’t advertise this, but “for rent by owner” (or FRBO) listings can offer a clue.
Instead of pulling a credit report themselves, some landlords will accept a credit reference with the rental application. Credit reference documentation can be a recent credit report that the tenant provides (saving them from paying a fee), or pay stubs and W-2s, or letters from previous landlords or lenders — basically, anything that shows your ability to pay the rent.
Recommended: Trying to Rent in a Tight Housing Market? 4 Steps To Win the Lease
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Why Landlords Perform Credit Checks
Landlords perform credit checks for apartment rentals for the same basic reason that employers run credit checks for employment: to help determine whether a prospect is financially responsible.
Landlords want tenants who pay their rent on time. By checking an applicant’s credit report, a landlord can see how reliably the person pays their bills and manages their credit. If someone has a history of late payments or outstanding debts, a landlord may think twice before renting to them.
When landlords run a credit check, it will be a soft credit inquiry, which won’t affect your credit score.
How the Process of No-Credit-Check Apartments Works
Depending on the landlord, the application process for a no-credit-check apartment can be pretty standard or very casual. Landlords generally ask for the following as part of your application:
• Proof of identity
• Proof of employment, income, or financial stability
• Vehicle information, if parking is provided
• Personal references
• Application fee
Typically, it takes one to three business days to process an application. Afterward, you’ll be given a lease to sign. At this time, you can negotiate the security deposit, move-in date, and any details such as minor repairs to be made. When you receive the keys, the place is yours.
Should I Sell My House Now or Wait?
Be Honest
No one likes an unhappy surprise. If you haven’t established credit yet, say so. If you have credit problems, say so. Have a conversation with the landlord before you apply to gauge their flexibility and warn them of red flags in your credit history. Then include a cover letter with your application repeating your explanations. Glowing reference letters also help offset a poor credit score.
Recommended: What Is a Tri-Merge Credit Report?
Get a Roommate
Finding a roommate with good credit can help make the deal go through. A landlord may accept using their name alone on the lease (assuming the roommate is OK with taking full responsibility for rental payments). Or you may be able to put both of your names on the lease.
Look for Sublets and Shares
Sometimes, a leaseholder will “sublet” their apartment while they pursue opportunities elsewhere. This allows them to return to their former home in the event they want to move back. Rather than paying rent to the landlord, the subletter will often pay the leaseholder, so financial documentation may not be required. This is a common arrangement in big cities, especially among leaseholders of rent-stabilized apartments.
In share situations, roommates who are on the lease may sublet an extra room without requiring much, if any, documentation. As long as you make a good impression, they may give you a chance.
Find a Cosigner
A cosigner is someone who promises the landlord to cover your rent if you cannot pay — usually a good friend or family member with great credit. Cosigners may or may not live in the apartment.
Pay a Higher Security Deposit
If you’re brainstorming how to rent an apartment with bad credit and no cosigner, consider laying some cash on the line. Whether you dip into savings or build up your reserves with an online budget planner, putting down several months’ rent as a security deposit can reassure the landlord.
Show Financial Proof
Perhaps you make a decent income that will make it easy to pay your rent. Or you saved up some money as a cushion. Share proof with the landlord in the form of pay stubs and bank statements.
Use Previous Landlords as References
If you’ve rented from other landlords and made those payments on time, bring a reference letter or two to prove it. Ideally, the reference should be on letterhead or at least look neat and professional. That might mean creating the letter yourself and having your previous landlord sign it.
Promote Yourself
Have superior presentation skills? You can use them to persuade your landlord what a great tenant you’ll make. Turn on the charm. Bring homemade baked goods. It works.
Build Your Credit History
If there’s somewhere you can stay for now — with a friend or family member — spend that time building your credit history. To build up poor credit, focus on paying bills on time and paying down credit card balances. During this time, it may help to sign up for free credit monitoring. What qualifies as credit monitoring varies by service, but look for one that offers alerts whenever your score changes.
When you have no credit, you can start to establish your history by becoming an authorized user on a credit card or putting a utility in your name. Just be aware that it may take six months or more for the system to generate your credit score. You may be able to check your credit score for free through your bank, credit card company, or credit counselor.
The credit score needed to rent an apartment varies by location and landlord. But according to FICO®, a credit score of at least 670 is usually enough to rent an apartment.
The Takeaway
If you haven’t yet established credit or have a problematic credit history, no-credit-check apartments are one option. However, there are many other ways to secure a rental, from finding a sublet or share situation to paying a higher security deposit. Beware of shady no-credit-check apartments: There’s no reason to settle for an unsafe or unhygienic environment just because of your credit score.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
What happens if you don’t have credit but want to rent an apartment?
Let the landlord know up front and ask what you need to do to rent the apartment. Their suggestions may include getting a roommate or cosigner with good credit, or putting down a larger security deposit. If you’ve rented in the past and made payments on time, ask your previous landlords for reference letters and build a case about why you’ll make a great tenant.
Can I rent an apartment with collections?
If you’re planning to rent a no-credit-check apartment, then the landlord won’t consider issues on your credit report. If your credit will be checked, talk to the landlord up front to see if renting with collections on your report is somehow possible.
What’s the minimum score to rent an apartment?
It’s up to the individual landlord. If a landlord requires a “good” credit score, FICO considers that to be in the range of 670-739.
I’m wondering how to pay rent with a credit card, no fee. What can I do?
If you’re renting right now, ask your landlord. If you’ll be seeking an apartment to rent, ask prospective landlords if this is possible. Each landlord has their own policy about credit cards.
Photo credit: iStock/StefaNikolic
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
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Once you’ve found the place you’d like to rent, you need to go through the entire rental process from filling out the application, providing proof of income, background and credit checks, and more before you can sign the lease. All of these tasks can be daunting, but it’s all part of the leasing process. You may also need to provide personal references, which can cause additional stress. You’re eager to get the apartment and want your reference to reflect you in the best light. So, who do you choose as your personal references? Whether you’re hoping to move into an apartment in Dallas, TX or eyeing a Raleigh, NC rental, we’ll walk through who to include (or exclude) when it comes to choosing a personal reference for your apartment.
Who to choose as your personal reference for an apartment application
Most landlords or property managers will request a list of personal references as part of the application process. This is another way for them to verify who you are, get to know your character, and gauge if you’ll be a reliable tenant. Likewise, you may want to check out who your future landlord is.
Because personal references can influence a landlord’s decision to rent to you or not, you want to choose your references wisely. Here are some people who make for good references on a rental application.
1. Past landlords
The best choice for a personal reference is a past property manager, assuming you left on good terms. Previous landlords will know how you were as a tenant, how you left the apartment when you vacated it, and your ability to pay rent on time. If you can include your previous landlord as a personal reference, their words will carry a lot of weight.
2. Managers or coworkers
While you may be friends with your manager or coworker, they’re your professional colleagues first and foremost. This relationship allows them to speak to your professionalism and conduct, which is what a landlord is looking to better understand. Your manager will be able to speak to your reliability and work ethic.
3. Coaches or mentors
Coaches and mentors are also good options when it comes to choosing a personal reference. They’ll likely know your goals, values, and strengths, and will be able to speak to your landlord about those things.
4. Professors or teachers
If you’re a student or recent graduate, academic professors or teachers can be good personal references because they’ll also know your work ethic and drive. If a student is dedicated to their work, it’s a good indicator they’re dedicated and motivated in other areas of their lives, like maintaining an apartment.
Who not to choose as a personal reference
Keep in mind, a landlord is using your personal reference as a way to understand if you’re reliable and will make a good future tenant. Landlords are looking for red flags so they don’t sign a lease with someone who will end up causing stress and problems in the future. While the people listed above are all good options of who to choose as your personal reference, there are people you’ll want to exclude as well.
1. Partner or spouse
Your significant other may know you the best, but they’re likely biased, and the future landlord will know that. Avoid listing a partner or spouse as your rental reference because a landlord will likely take their opinion with a grain of salt.
2. Close family members
For similar reasons, family members are not your best choice as a personal reference. Obviously, your family members want the best for you, so they may not give the landlord an honest opinion on your rental eligibility. If the landlord can’t get an unbiased opinion from a reference, they’ll likely disregard what they have to say.
3. Close friends
Just like family members or romantic partners, a close friend is not the optimal choice as a personal reference. Property owners are looking for references who can vouch for your ability to pay your bills on time or your reliability as a potential tenant.
Why do landlords ask for personal references?
Landlords assume a degree of risk whenever they lease an apartment to a tenant. The last thing they want to do is approve a renter who doesn’t pay their rent on time (or at all) or causes problems for themselves or other tenants. References give the landlord a window into the character and reliability of a potential tenant.
Information they might want to learn includes potential tenant’s income and ability to pay rent, reliability, ability to take care of the property. If a tenant has any potential red flags such as a low credit score or prior evictions, references can provide additional context or assure the property manager that steps are being taken to resolve these issues.
Best practices for choosing references for an apartment
Now that you have a list of who to choose as a personal reference, here are a few best practices to keep in mind.
1. Always notify your references beforehand
If you’re going to use a previous landlord or professor as a reference, it’s common courtesy to ask if they’re willing to be a reference and let them know you’ll be giving out their contact information. It can look unprofessional if a landlord were to call a reference and they had no idea what was going on.
2. Provide multiple options in case someone isn’t available
It’s smart to provide a list of at least two personal references in case the first person is unavailable. Landlords want to speak to personal references, and if they can’t get a hold of anyone, they may pass on your application.
3. Clearly identify your references
To make things easier for the landlord, clearly annotate your references’ relationship to you in the apartment application. This helps the property manager understand who they’ll be calling and what to expect on the call.
FNBO Amtrak Amtrak Guest Rewards Preferred card is offering a signup bonus of 35,000 points when you spend $2,000 within the first three billing cycles.
The no-fee card also bumped the bonus to 12,000.
Card Details
Annual fee of $99 is not waived
Complimentary Companion Coupon, One-Class Upgrade and a single-day
ClubAcela pass for access to ClubAcela, Amtrak Metropolitan Lounge or First class
Card earns at the following rates:
3 points per $1 spent with Amtrak
2 points per $1 spent on all other qualifying travel and dining purchases
1 point per $1 spent on all other purchases No foreign transaction fees
5% Amtrak Guest Rewards point rebate when you book your Amtrak redemption
Our Verdict
Not as good as the 40,000 point bonus that has been offered twice. Hopefully we see an increased offer with a dummy booking, but that hasn’t happened with this FNBO card yet.
When people think of Cincinnati, they often picture its vibrant downtown, but the true essence of living in Cincinnati extends beyond the urban core. The suburbs of Cincinnati are diverse residential areas that offer a quieter, more relaxed lifestyle while still providing easy access to the city’s bustling amenities. These Cincinnati suburbs are spread across various parts of the metropolitan area, each with its own unique character and appeal.
In this ApartmentGuide article, we’ll explore some of the most notable Cincinnati suburbs—from historic neighborhoods to more modern developments—highlighting key aspects such as population, average rent, and what makes each area stand out. Whether you’re searching for the perfect apartment in Cincinnati or curious about the different Cincinnati neighborhoods, let’s discover the best parts of Cincinnati to call home.
Cost of living in Cincinnati
Before we dive into the top Cincinnati suburbs, let’s cover how much it costs to live in Cincinnati. The overall cost of living in Cincinnati is about 14% lower than the national average, making it a relatively affordable place to live. Housing is a key factor, with the median sale price for a home in Cincinnati at $260,722, which is significantly lower than the national average of $432,657. Rent follows a different trend, with the average rent for a one-bedroom apartment in Cincinnati at $1,638, slightly higher than the national average of $1,514.
While some suburbs around Cincinnati offer more affordable options, others can be more expensive, offering luxury and high-end amenities. Here, we’ll explore a range of top suburbs, providing different lifestyle and housing opportunities depending on your budget and preferences.
If you’re looking for more specific rental insights, check out our guide on the 12 Most Expensive Neighborhoods in Cincinnati, OH to Rent in 2024.
1. Hyde Park
Known for: Historic charm, vibrant square, and upscale amenities.
Hyde Park is one of Cincinnati’s most prestigious neighborhoods, offering a blend of historic charm and modern living. The heart of the community is Hyde Park Square, where residents enjoy a variety of shops, restaurants, and cafes. With tree-lined streets, beautifully preserved historic homes, and plenty of green space, Hyde Park provides an upscale suburban feel while still being just a short drive from downtown Cincinnati. The neighborhood also hosts events like the Hyde Park Farmers’ Market, adding to its community-centered atmosphere.
Population: 13,000 Median home sale price: $498,250 Hyde Park transportation scores: Walk Score 59, Bike Score 46, Transit Score 42
Apartments for rent in Hyde Park, OH | Houses for rent in Hyde Park, OH | Homes for sale in Hyde Park, OH
2. Oakley
Known for: Trendy vibe, growing business district, and walkable streets.
Oakley is a rapidly growing suburb known for its lively business district and trendy atmosphere. The area is home to a mix of independent boutiques, local restaurants, and popular retail chains, making it a shopping destination for Cincinnati residents. Oakley’s walkability and proximity to downtown make it a popular choice for professionals. Housing options include both charming older homes and new developments, providing a range of styles and price points.
Population: 10,000 Median home sale price: $385,000 Oakley transportation scores: Walk Score 62, Bike Score 44, Transit Score 43
Apartments for rent in Oakley, OH | Houses for rent in Oakley, OH | Homes for sale in Oakley, OH
3. Indian Hill
Known for: Luxury estates, scenic beauty, and exclusivity.
Indian Hill is one of Cincinnati’s most exclusive suburbs, offering expansive estates and sprawling properties set in a serene, rural atmosphere. With a focus on privacy and luxury, Indian Hill is known for its large homes and beautifully landscaped grounds. The area boasts equestrian facilities, golf courses, and plenty of green space, making it ideal for those seeking a high-end, nature-focused lifestyle.
Population: 5,800 Median home sale price: $2,200,000 Indian Hill transportation scores: Walk Score 11, Bike Score 26
Apartments for rent in Indian Hill, OH | Houses for rent in Indian Hill, OH | Homes for sale in Indian Hill, OH
4. Anderson Township
Known for: Local amenities, parks, and strong community vibe.
Located east of Cincinnati, Anderson Township offers a suburban feel with access to an array of parks, recreational facilities, and top-rated schools. The community is home to the Anderson Towne Center, which provides shopping, dining, and entertainment options. Housing in Anderson Township ranges from affordable starter homes to larger, more upscale properties, making it popular among a wide range of residents.
Population: 44,000 Median home sale price: $356,500 Anderson Township transportation scores: Walk Score 6, Bike Score 13
Homes for sale in Anderson Township, OH
5. Blue Ash
Known for: Corporate hub, golf courses, and upscale living.
Blue Ash is a northern suburb of Cincinnati known for its thriving business district and quality of life. Home to numerous corporate offices and a bustling commercial center, Blue Ash attracts professionals looking for easy access to work while enjoying suburban tranquility. The area also offers plenty of recreational options, including the Blue Ash Golf Course and parks like Summit Park, where residents can enjoy concerts, festivals, and outdoor activities.
Population: 12,000 Average rent for a one-bedroom apartment: $1,949 Median home sale price: $288,500 Blue Ash transportation scores: Walk Score 63, Bike Score 50
Apartments for rent in Blue Ash, OH | Houses for rent in Blue Ash, OH | Homes for sale in Blue Ash, OH
6. Montgomery
Known for: Small-town charm, historic landmarks, and upscale dining.
Montgomery is a quaint suburb northeast of Cincinnati that maintains its small-town charm with historic landmarks, boutique shopping, and highly-rated restaurants. Montgomery’s main street is dotted with local businesses, giving the area a distinct and welcoming feel. Known for its peaceful, tree-lined streets, Montgomery offers a variety of housing options from beautifully restored older homes to newer, custom-built residences. The area is also popular for its excellent schools and easy access to I-71, making it convenient for commuting into the city.
Population: 10,500 Average rent for a one-bedroom apartment: $1,649 Median home sale price: $905,000 Montgomery transportation scores: Walk Score 71, Bike Score 40
Apartments for rent in Montgomery, OH | Houses for rent in Montgomery, OH | Homes for sale in Montgomery, OH
7. Mason
Known for: Amenities, Kings Island, and top-rated schools.
Mason is one of the fastest-growing suburbs in the Cincinnati area, known for its extensive recreational opportunities and friendly environment. The suburb is home to Kings Island amusement park and the Great Wolf Lodge, making it a destination for entertainment. Mason also boasts excellent schools and ample green spaces, including Pine Hill Lakes Park and the Mason Community Center. The housing market in Mason features a mix of single-family homes, townhouses, and newer developments, catering to a range of preferences.
Population: 34,000 Average rent for a one-bedroom apartment: $1,642 Median home sale price: $403,250 Mason transportation scores: Walk Score 18, Bike Score 42
Apartments for rent in Mason, OH | Houses for rent in Mason, OH | Homes for sale in Mason, OH
Methodology: The suburbs included in this list were selected based on their overall popularity, determined by search trends and housing demand in the Cincinnati area. Average rent and home sale price data were sourced from Redfin and Rent.com as of October 2024. Transportation data, including Walk Scores, Bike Scores, and Transit Scores, was sourced from Walk Score.
Home decor is an extension of your personality, and astrology can offer intriguing insights into your design preferences. Whether you’re gravitating toward the simplicity of minimalism for your Raleigh, NC home, an artistic statement in your Chicago, IL apartment, or layered aesthetics of maximalism for your Charlotte, NC rental, your zodiac sign might be influencing your choices. Here’s what the stars say about your style in the ongoing debate of minimalist vs maximalist decor.
Minimalism vs maximalism explained
Minimalist vs Maximalist decor represents two contrasting design philosophies. Minimalism is all about simplicity, clean lines, and a clutter-free space. Focusing on function and intentionality. It uses neutral tones, sleek furniture, and emphasizes open, airy environments. On the other hand, maximalist design embraces boldness-vibrant colors, eclectic patterns, and layered textures. It’s about filling a space with personality and creating a visually stimulating environment. While minimalist thrives on “less is more”, maximalist decor celebrates “more is more” allowing for creative freedom and expressive design choices.
1. Aries (March 21 – April 19): Bold maximalism
Aries, known for their boldness and high energy, are naturally drawn to maximalist decor that reflects their dynamic personality. Julia from wellness lifestyle brand, The Mantra Collective in Laguna Hills, CA notes, “Aries, with their bold and energetic nature, may lean toward maximalism, embracing vibrant colors and dynamic statement pieces.”
Similarly, Brindha Dhanabalan, CEO of All Cotton and Linen highlights that “Aries love decor that makes a statement. Items like red-and-white checkered tablecloths are a perfect fit for their bold home.” Daniel Shuttleworth of Life StyleBrew & Tattoo Build adds that, “Aries may lean toward a vibrant gallery wall featuring an eclectic mix of art pieces, mirrors, and personal mementos, creating a lively focal point that matches their bold energy.”
2. Taurus (April 20 – May 20): Cozy, nature-inspired maximalism
Taurus prefers a grounded, nature-inspired environment with a focus on comfort. Julia from The Mantra says, “Tauruses value comfort and luxury, making them ideal candidates for a maximalist approach. Think cozy textiles like plush throws and velvet cushions that add warmth and a touch of indulgence to their home. Katja Rottinger of vintage furniture store, Vintarama, adds that, “Taurus prefer robust wooden furnishings with rustic elements, perfectly aligned with a maximalist approach. Their decor often includes natural materials like wool, fur, and driftwood, creating a warm, down-to-earth atmosphere.”
3. Gemini (May 21 – June 20): Playful maximalism
Geminis are known for their playful and curious nature, making eclectic maximalism a great match for them. Julia from The Mantra explains, “Geminis enjoy variety and playfulness, which translates well into a maximalist home featuring mix-and-match patterns and colors.” A gallery wall filled with diverse art pieces is an ideal reflection of Gemini’s ever-changing interests. Meisy Tunay of home decor brand, Fenlo Shop, also mentions, “A Gemini might enjoy a playful, eclectic decor style, bringing in elements that mirror their big-eyed personality.”
4. Cancer (June 21 – July 22): Cozy minimalism
Cancers, ruled by the Moon, seek comfort and security in their surroundings, making them a natural minimalist in the minimalist vs maximalist decor debate. Lisa Marinkovich, blogger of Gal Pal Lifestyle, points out that Cancers prefer a cozy, minimalist approach. “Cancers should focus on soft furnishings and meaningful decor to create a nurturing environment,” shares Marinkovich. A light sofa paired with a cozy throw blanket can create a serene atmosphere, perfectly suited to Cancer’s nurturing spirit. Julia from The Mantra also emphasizes, “Minimalism allows Cancer to foster the peaceful, secure space they crave.”
5. Leo (July 23 – August 22): The maximalist showstopper
Leos are known for their love of drama and self-expression, making them the natural maximalists of the zodiac. Bradley Hebdon, founder of Vintage Shopper in Crowley, TX explains, “Maximalist decor, with its bold layering of vibrant colors, patterns, and textures, perfectly matches the energy of a Leo.” They gravitate toward spaces filled with oversized plants, vintage furniture, and luxurious accents like golden mirrors and velvet chairs. Hebdon adds, “Adding patterned rugs, mismatched throw pillows, and unique lighting fixtures enhances the dramatic, curated feel of the room.”
6. Virgo (August 23 – September 22): Functional minimalism
Virgos are known for their practicality and organization, making them naturally drawn to minimalist decor. Dennis from Star-Naming highlights, “Virgos prefer uncluttered shelves and calming, earth-toned accents that reflect their organized nature.” Meisy Tunay of Fenlo Shop agrees, stating that, “A Virgo might appreciate minimalist design and decor that emphasizes clean lines and organization. Every detail serves a purpose, and their space is always designed for functionality.”
Photo courtesy of Katja Rottinger of vintage furniture store, Vintarama
7. Libra (September 23 – October 22): Balanced minimalism
Charming and sociable, Libras seek beauty and balance in every aspect of their lives, including their home decor. Peter Stockinger from Stars and Stones points out, “Libras love to experiment, often blending contemporary sophistication with minimalist aesthetics.” Twinkle from artisan home decor brand, Mianzi, also weighs in. “An Opium Pendant Lamp or something similar that has a refined design is perfect for a Libra’s harmonious and sophisticated taste reflecting their love for balance in decor,” says Twinkle.
Scorpios are drawn to moody, transformative spaces, often incorporating rich, mysterious textures like deep velvets and dark colors. Michelle Saya, a writer and blogger, says, “Scorpios create spaces that are intimate and transformative where every piece tells a story.” While they might prefer minimalist layouts, Scorpios often infuse their spaces with egocentric statement pieces that reflect their deep, passionate nature. “Scorpios are drawn to the industrial look with darker colors and egocentric statement pieces,” emphasizes Katja Rottinger of vintage furniture store, Vintarama.
Sagittarius expresses their adventurous spirit with a curated maximalist style. Meisy Tunay from Fenlo Shop explains, “Sagittarius gravitates toward spaces filled with carefully selected, eclectic pieces that reflect their love for travel and exploration.” Peter Stockinger of Stars and Stones adds, “Sagittarians favor decor that highlights ‘collected treasures,’ making maximalism an ideal way to capture their bold, well-traveled nature.”
Capricorns are disciplined and ambitious, favoring sleek, minimalist spaces that prioritize functionality. “They’re drawn to modern Scandinavian trends with chic, functional, and cozy elements,” explains Katja Rottinger of Vintarama. Elisa Szymanski of ESY Arts in Poughkeepsie, NY, providing wall art and clothing to express your individuality, echoes this, stating, “Capricorns favor well-crafted, timeless pieces —like a minimalist walnut bookshelf which suits their pragmatic nature. Capricorns value organization and simplicity, favoring fewer items focused on utility.”
Aquarians are known for their individuality and often embrace an eclectic yet minimalist decor style. Peter Stockinger of Stars and Stones describes, “Aquarians as free spirits who are inclined to do the unexpected in their home decor. They appreciate smooth surfaces and clear lines but also love incorporating unique, standout pieces.” Brindha Dhanabalan adds, “Aquarians enjoy unique and eco-friendly decor, making sustainable minimalism and underconsumption an ideal choice for their creative homes.”
12. Pisces (Feb. 19 – Mar. 20): Dreamy maximalism
Pisces are known for their dreamy and sentimental nature, making them natural maximalists who prefer soft, whimsical decor. Julia from The Mantra suggests, “Pisceans should invest in Bohemian-style designs to reflect their adaptive and imaginative spirit.” Brindha Dhanabalan of All Cotton and Linen adds, “Pisces love soft, dreamy decor with items like light blue napkins or luxury towels adding a magical, tranquil touch to their home.”
Jyotisha and the home
In addition to Western astrology, the Hindu system of astrology, known as Jyotisha, offers a unique perspective on home decor. As Devala Rees of the Hindu American Foundation explains, “We primarily look at which astrological bodies occupy which of the twelve houses in a person’s birth chart, most especially the fourth house, which corresponds to the home.” Rees also shares, “Individuals with the Sun in their fourth house may gravitate toward sunny, open spaces, while those with Saturn might prefer darker, somber rooms.” These subtle intricacies in Jyotisha show how astrological influences can deeply shape an individual’s home environment, offering a more personalized approach to decor.
Minimalist vs Maximalist decor: Which is right for you?
Your zodiac sign can offer fascinating insights into your home decorating style, whether you favor the simplicity of minimalism or the rich layers of maximalism. From Leo’s love of bold, dramatic spaces to Virgo’s clean, functional designs, astrology shows how our star signs influence our design choices. So, where do you fall in the minimalist vs maximalist decor debate? Let your zodiac sign guide your next decor decision.
Regulators today ordered Apple and investment banking giant Goldman Sachs to pay almost $90 million in penalties and customer redress over what it termed “Apple Card failures.”
The Consumer Financial Protection Bureau (CFPB) cited “customer service breakdowns and misrepresentations” that affected hundreds of thousands of Apple Card customers. Chief among the issues cited: the failure of Apple to send “tens of thousands” of disputed transactions to Goldman Sachs for resolution. When Apple did send disputes, the CFPB says, Goldman Sachs failed to follow federal rules for investigating the disputes.
The Apple Card was introduced in August 2019, with Goldman Sachs aboard to extend credit and handle account servicing. Both companies had limited experience in the consumer credit market prior to launching the card. There were 12 million Apple Card holders as of January this year, according to Apple.
How the CFPB penalties break down
Apple was ordered to pay a $25 million civil penalty.
Goldman Sachs was ordered to pay a $45 million civil penalty and $19.8 million in customer redress.
Goldman Sachs was also banned from launching any new credit card “unless it can provide a credible plan that the product will actually comply with the law.”
What the CFPB found in its investigation
The handling of disputed transactions was central. The CFPB charges that the card was launched despite third-party warnings that there were technological issues with the card’s disputes system. According to the CFPB, this led to long waits for customers looking to resolve disputed charges and, for some, “incorrect negative information” added to their credit reports.
The CFPB also found that the companies “misled consumers about interest-free payment plans for Apple devices,” and that Goldman Sachs “misled customers about the application of some refunds.”
What’s next for affected consumers
Many consumers who are eligible for redress have already received payment, according to an email statement from the CFPB. Any remaining eligible consumers will be contacted by Goldman Sachs.
Company reaction
Goldman Sachs first revealed in a 2022 SEC filing that it was cooperating with the CFPB in its yearslong investigation. In statements to the media, both companies defended the Apple Card, saying the issues under investigation had been resolved.
“Upon learning about these inadvertent issues years ago, Apple worked closely with Goldman Sachs to quickly address them and help impacted customers,” Apple said in a statement, according to CNN.
Goldman Sachs started a foray into consumer banking in 2016 with the introduction of its Marcus brand. It has been rolling back or reshuffling some of those efforts to focus on its core business; earlier this year, it stopped issuing new personal loans.
Co-branded credit cards — issued in partnership between a major brand and a bank — have a spotty track record in recent years, often due to a mismatch between the partners.
These factors could range from proximity to family and schools to convenience for work or cultural ties, making it critical to understand not only the financial but the personal factors driving decisions. When evaluating areas of high inventory, Farzad pointed out that it’s not just about jumping on the bandwagon of lower prices. He noted … [Read more…]