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Minnesota, known as the “Land of 10,000 Lakes,” blends natural beauty and city life. If you’re considering a move to this northern state, it’s essential to weigh the pros and cons of living in Minnesota. So, is Minnesota a good place to live? Let’s explore what makes it appealing and some challenges residents face.

Is Minnesota a good place to live?

Life in Minnesota is characterized by its stunning landscapes, friendly communities, and a strong emphasis on outdoor activities. The largest cities, Minneapolis and St. Paul, also known as the Twin Cities, boast a thriving arts scene, diverse culinary options, and numerous cultural festivals throughout the year. Major employers include Target, U.S. Bancorp, and the Mayo Clinic, contributing to diverse job market. 

For opportunities to explore the outdoors, Minnesota offers a wealth of activities year-round. In the summer, residents can explore the state’s 10,000 lakes, with opportunities for kayaking, fishing, and swimming. The extensive trail system in parks like the Boundary Waters and the Superior Hiking Trail attract hikers and campers from all over. Whether you’re drawn to the thriving job market, the rich arts scene, or the endless outdoor adventures, Minnesota has something for everyone.

Minnesota state overview

Population 5,706,494
Biggest cities in Minnesota Minneapolis, Saint Paul, Rochester
Average rent in Minneapolis $1,649
Average rent in Saint Paul $1,311
Average rent in Rochester $1,464

1. Pro: Abundant outdoor activities

Minnesota is a great place to explore. With its 10,000 lakes and numerous parks, you can enjoy various activities year-round. In the summer, fishing, swimming, and boating on lakes like Lake Minnetonka or Lake of the Isles are popular pastimes. As the seasons change, the state’s natural beauty transforms, offering excellent opportunities for hiking in the lush forests, biking on scenic trails, and enjoying the vibrant fall colors. When winter arrives, residents can embrace snowshoeing, ice fishing, and skiing in places like Afton Alps.

Travel tip: Don’t miss the Boundary Waters Canoe Area Wilderness. This stunning location has pristine lakes and incredible opportunities for canoeing, fishing, and camping, making it perfect for a weekend getaway.

2. Con: The winters can be harsh

While the snow-covered landscape can be beautiful, winters in Minnesota can be brutal, with temperatures often plunging below freezing and snow accumulating frequently. This extreme weather can impact daily life, making commuting a challenge and limiting outdoor activities for some. The subzero temperatures can lead to icy roads and increased heating costs, forcing residents to bundle up and invest in winter gear. 

3. Pro: Minnesotans are friendly

Minnesotans are known for their friendliness and community spirit, which is evident in the many local events and gatherings throughout the year. Neighborhoods often come together for community events, farmers’ markets, and festivals that celebrate local culture and history. Volunteering is a common practice, and many residents engage in initiatives that support local charities and businesses. 

Insider scoop: Attend the Minnesota State Fair in late August to early September, where you can sample iconic local foods, enjoy live music, and experience the best of Minnesota culture. 

4. Con: There are plenty of potholes to avoid

One of the more frustrating aspects of living in Minnesota is the prevalence of potholes, particularly during the spring months. The state’s harsh winter weather, with its constant freeze-thaw cycles, takes a serious toll on the roads, leading to an abundance of potholes. These road hazards can make driving less enjoyable and potentially cause damage to vehicles, such as flat tires or misaligned suspensions. In some areas, it can feel like you’re constantly dodging potholes on your daily commute, which can be a significant inconvenience for residents. 

5. Pro: Rich cultural scene

The Twin Cities are home to a variety of museums, theaters, and galleries, including the Walker Art Center and the Minneapolis Institute of Art. These institutions host a wide range of exhibits and performances, showcasing local and international artists. Additionally, events like the Minnesota State Fair and the Twin Cities Jazz Festival highlight the state’s rich arts and music scene, offering opportunities for residents to explore and enjoy diverse cultural experiences. 

Insider scoop: Take advantage of the Minneapolis Institute of Art, which offers free admission to its extensive collection of art from around the world. This gem not only showcases local artists but also hosts rotating exhibitions.

6. Con: High income taxes

Minnesota has one of the higher tax burdens in the country, which can be a drawback for some residents. State income tax rates can reach as high as 9.85% for those in higher income brackets, and property taxes can also be notable, impacting overall affordability. While these taxes fund essential services like education, healthcare, and infrastructure, they can strain budgets.

7. Pro: Commitment to sustainability

Minnesota is known for its commitment to sustainability and environmental protection. Many cities, including Minneapolis and St. Paul, promote green living initiatives, encouraging residents to adopt eco-friendly practices such as recycling, composting, and using public transportation. The state has also invested in renewable energy sources, making significant strides toward reducing its carbon footprint. Residents often engage in community efforts to protect local ecosystems and support sustainable agriculture. 

Insider scoop: If you’re looking to get involved locally, check out Minnesota’s Zero Waste Challenge or volunteer with organizations like Minnesota Water Stewards, where you can actively contribute to keeping the state’s water sources clean and promote conservation efforts in your community.

8. Con: Limited public transportation

While the Twin Cities have a light rail system and bus services, public transportation options in other areas can be limited. Many suburban and rural communities lack comprehensive transit systems, which can make owning a car necessary for getting around. This limitation may be challenging for those who rely on public transport or prefer a car-free lifestyle. As a result, residents may need to budget for a vehicle and associated costs, such as insurance and maintenance.

9. Pro: Relatively lower cost of living in the state

One of the appealing aspects of living in Minnesota is its relatively lower cost of living compared to many other states, particularly in the Midwest. While cities like Minneapolis and St. Paul have seen rising housing costs, they are still more affordable than other major metropolitan areas in the U.S. The average rental rate for a one-bedroom apartment in Minneapolis hovers around $1,400 per month, while in smaller cities like St. Cloud, it’s significantly lower, averaging around $875. This lower cost of living makes Minnesota a good place to live for those looking to stretch their budget.

10. Con: Beware of the ticks

Ticks are a common nuisance in Minnesota, especially during the warmer months from late spring through early fall. These small, parasitic insects thrive in the state’s wooded areas, grassy fields, and even along hiking trails. The risk of tick bites can be a concern, as some ticks carry diseases such as Lyme disease and anaplasmosis. While enjoying Minnesota’s beautiful landscapes, residents must remain vigilant about tick prevention, including wearing long sleeves, using insect repellent, and conducting thorough tick checks.

Pros and cons of living in Minnesota: Overview

Pros Cons
Abundant outdoor activities The winters can be harsh
Minnesotans are friendly Plenty of potholes
Rich cultural scene High income tax
Commitment to sustainability Limited public transportation
Relatively lower cost of living in the state Ticks are a common nuisance

Source: rent.com

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A typical home needs about 17 to 30 solar panels, according EnergySage, a solar and home energy product comparison marketplace

. This wide range reflects the many variables involved, such as energy use and amount of sunshine. For an average system size of 8.1kW in sunny California, you’ll need about 20 panels.

How to calculate how many solar panels you need for your house

To calculate how many panels you need, you can use this formula:

Number of panels = annual electricity use ÷ solar panel production ratio ÷ solar panel output

The following steps guide you through the formula.

1. Find your home’s annual electricity usage

Your electricity use is measured in kilowatt-hours (kWh). To determine how much electricity your home uses, look at your electric bill history, usually available online at your utility’s website. If your gas bill is combined with your electric bill, look at the portion of your bill that’s for electricity. You’ll need to add up 12 months of electric bill data; if your utility is one of a growing number that provides Green Button data from the U.S. Department of Energy, you can use that to download a spreadsheet of your bill history and quickly calculate the total kWh for a year

U.S. Department of Energy. Green Button. Accessed Oct 17, 2024.

.

2. Find the production ratio for your location

Solar production ratio is the ratio of a solar panel’s estimated energy output over time to its size. The production ratio depends on your location, because some regions get more sun per day than others, increasing a solar panel’s energy output

. You can look up your state’s solar production ratio on this map created by EnergySage.

3. Determine the output of your solar panels

Your solar panel output is measured in watts. Once you have quotes from installers, they will specify the output of the proposed panels. To calculate how many panels you’ll need before you get quotes, you can use 400W, the typical output for today’s residential solar panels.

4. Calculate how many panels you need

Let’s say your home uses 10,791 kWh annually, the average in the U.S. If your production ratio is 1.5, like it is for my home in California, you’ll need 18 panels to cover all of your home’s energy usage:

10,791 ÷ 1.5 ÷ 400 = 17.99 panels

Using this formula gives you a rough, high-level estimate. Your solar installer can refine your system sizing, taking into account the factors detailed below.

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Factors that affect how many solar panels you need

The exact number of solar panels you’ll need depends on these factors:

Your current electricity use

The key factor in determining the number of panels you need is how much electricity you use. If you have enough space on your roof, you’ll likely want enough solar panels to cover all of your electricity use.

Your future electricity use

Do you expect your family to grow? Are you planning to switch to an electric car or a heat pump? Will you be adding a refrigerator, pool, or air conditioning? It’s more cost-effective to install enough solar now to cover expected future use; that can also protect your investment if solar programs in your area, such as net metering, are phased out later.

The amount of sun you get

The more sun you get, the more electricity your solar panels can generate and the fewer panels you’ll need to cover your electricity use. You can get an idea of the solar resource in your area from the National Renewable Energy Laboratory (NREL) solar irradiance map.

Courtesy National Renewable Energy Laboratory.

Panel wattage and efficiency

Today’s typical residential solar installations use 400W panels, with an average range from 350W to 450W. Panels today have an average efficiency of 21% (with some up to 23% efficient), meaning that they convert 21% to 23% of the sunlight that hits them into electricity

. Higher-watt and higher-efficiency panels produce more energy but tend to cost more than their lower-watt and lower-efficiency counterparts. If your roof space is limited, you may be limited in how many panels you can have installed. In that case, you may want to consider higher-efficiency, higher-watt panels.

Your roof

How many panels you can have installed depends in part on the size of your roof, but there’s more to it than that. You’ll also need to consider the shape of the roof, whether it has obstructions such as vents and skylights, and whether it’s subject to shading from trees or buildings.

Your roof’s orientation also affects the number of panels you need; panels will generate the most energy on a south-facing roof, followed by east- and west-facing roofs

. Of course, your roof must be in good condition to be able to support the weight of the panels. After providing an initial quote using online tools, your installer will conduct a site visit to assess the condition of your roof and determine how many panels you can fit on it. If you can’t fit enough panels on your roof to cover all your electricity needs, it may still be worth covering a portion of your electricity.

Frequently asked questions

Source: nerdwallet.com

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A trade credit is a business-to-business (B2B) transaction where one business is able to procure goods or services from the other without immediately paying for them. It’s called a trade credit because when a seller allows a buyer to pay for goods or services at a later date, they are extending credit to the buyer.

Trade credit can be a great tool for a small business that can free up cash flow and grow a company’s assets. However, there are some drawbacks, including a short financing window and potentially high interest if you need to extend that window.

Here’s what every small business needs to know about trade credit.

Key Points

•  Trade credit is a short-term financing arrangement where a supplier allows a business to purchase goods or services and pay at a later date, typically within 30 to 120 days.

•  It helps businesses maintain cash flow by deferring payments, allowing them to use available funds for other operational needs.

•  Trade credit generally does not carry interest if paid within the agreed-upon terms, making it a cost-effective financing option.

•  Strong trade credit terms can enhance relationships with suppliers, encouraging future collaborations.

•  Delayed payments may result in penalties or strained relationships with suppliers.

How Does Trade Credit Work?

Trade credit is a formal name for a common agreement between two companies where one company is able to purchase goods from the other without paying any cash until an agreed upon date. You can think of trade credit the same way as 0% financing, but with shorter terms. Sometimes trade credit is also referred to as vendor financing.

Sellers that grant their customers trade credit generally give them anywhere between 30 and 120 days to pay for the goods or services they received on credit. The range, however, can be higher or lower depending on the industry and individual seller.

Often, the seller will offer the buyer a discount if they settle their account earlier than the balance due date. If they do offer a discount, the terms of the trade credit sale are usually written in specific format. For example, if the seller offers a 5% discount if the invoice is paid within 20 days, but is willing to give the buyer a maximum of 45 days to pay the invoice, that agreement would be written as:

5/20, net 45.

If the buyer is unable to pay their invoice within the set time period (which is 45 days in the above example), the vendor will typically charge interest. If that happens, trade credit is no longer an interest-free form of financing.

Recommended: 15 Types of Business Loans to Consider

Common Terms

Common terms used in trade credit include:

•  Net terms: This specifies the number of days the buyer has to pay the invoice, such as “Net 30” or “Net 60,” meaning payment is due within 30 or 60 days.

•  Discount terms: Offers a discount for early payment, like “2/10, Net 30,” meaning a 2% discount is available if paid within 10 days.

•  Credit limit: The maximum amount a supplier allows a buyer to purchase on credit at one time.

•  Invoice: A detailed bill issued by the supplier outlining goods or services provided and the payment due.

•  Grace period: The extra time allowed beyond the due date to settle the account without incurring penalties.

Types of Trade Credit

The three main types of trade credit include:

1.   Open Account: The most common form, where the supplier delivers goods or services and the buyer agrees to pay by a specified date, usually 30 to 120 days later.

2.   Promissory Note: A formal written agreement where the buyer promises to pay the supplier by a certain date, often used when open accounts are not available.

3.   Trade Acceptance: The buyer signs a formal agreement accepting the supplier’s terms and acknowledging their obligation to pay at a future date. Trade acceptance is sometimes used for larger or international transactions.

Who Uses Trade Credit?

Business trade credit is very common in the B2B ecosystem. Businesses that use trade credit include:

•  Accountants/bookkeepers

•  Advertising/marketing agencies

•  Construction/landscaping companies

•  Food suppliers

•  Restaurants

•  Manufacturers

•  Wholesalers

•  Retailers

•  Cleaning services

Pros and Cons of Trade Credit

Pros and Cons of Trade Credit for Buyers

Pros of trade credit for buyers include:

•  Frees up cash: Because payment is not due until later, trade credits improve the cash flow of businesses, enabling them to sell goods they acquired without having to pay for those goods until a future date. It can be a good option for companies expanding into a new market or that have seasonal peaks and dips.

•  Possible discount: Depending on the trade credit agreement, if the buyer pays the invoice within a certain amount of time, they may receive a discount on the goods or services they purchase.

•  0% interest: The cost of capital can be a burden on some small businesses. If the buyer can settle the invoice within the agreed upon time frame, there is no interest charged on this type of financing.

Cons of buyers using trade credit include:

•  Short payment period: The length of the trade credit payment term varies, but they are often 120 days or less, which is shorter than most types of small business loans. For a growing small business, this may not be enough time. Companies that need a longer repayment period may want to look into other types of debt instruments.

•  It’s easy to over-commit: With discounts and wholesale prices, it can be tempting to buy too much of a particular good. Not only does this create excess inventory, but it also creates a bigger debt obligation.

•  Possible penalties for late payments: Depending on the trade credit agreement, there may be negative consequences for late payments, such as interest or a fine. In addition, the company might report your late payment to the credit bureaus, which could damage your business’s credit score.

Recommended: Getting a Cash Flow Loan for Your Small Business

Pros and Cons of Trade Credit for Sellers

Pros of using trade credit for sellers include:

•  Beat out competitors: Companies offering trade credit may be able to gain an advantage over industry peers that don’t offer trade credit. Because it can be difficult for some small businesses to get a bank loan, they may seek out suppliers offering trade credit.

•  Develop a strong relationship with clients: Offering trade credit increases customer satisfaction, which can lead to customer loyalty and repeat business.

•  Increase sales: Trade credits are still sales even if payment is delayed. Trade credit can also encourage customers to purchase in higher volumes, since there is no cost to the financing. Therefore, a trade credit can provide the opportunity for growth and expansion.

Cons of trade credit for sellers include:

•  Delayed revenue: If your business has plenty of cash, this may not be an issue. However, if budgets are tight, delayed revenue could make it difficult to cover your operating costs.

•  Risk of buyer default: Sometimes customers are unable to pay their debts. Depending on the trade credit agreement, there may be little to nothing the seller can do other than sell the debt to a collection agency at a fraction of the cost of the goods provided.

•  Less profit with early payment discounts: If the seller offers a discount for early payment, they will earn less on the sale than they otherwise would.

Recommended: Understanding Business Liabilities

Trade Credit Accounting

Trade credit needs to be accounted for by both buyers and sellers. The process, however, will vary depending on the company’s accounting method — specifically, whether they use accrual vs cash accounting.

With accrual accounting (which is used by all public companies), revenue and expenses are recorded at the moment of transaction, not when money actually changes hands. With cash accounting, on the other hand, a business records transactions at the time of making payments.

A seller who offers trade credits and uses accrual accounting can face some complexities if the buyer ends up paying early and getting a discount or defaulting (and never paying). In this case, the amount received doesn’t match their account receivables and the difference becomes an account receivable write-off, or liability that must get expensed.

Trade Credit Instruments

Typically, the only formal document used for trade credit agreements is the invoice, which is sent with the goods, and that the customer signs as evidence that the goods have been received. If the seller doubts the buyer’s ability to pay in the allotted time, there are credit instruments they can use to guarantee payment.

Promissory Note

A promissory note, or IOU, is a legal document where the borrower agrees to pay the lender a certain amount by a set date. While it’s usually used for repaying borrowed money, it can also be used to pay for goods or services.

Commercial Draft

One hitch with a promissory note is that it is typically signed after delivery of the goods. If a seller wants to get a credit commitment from a buyer before the goods are delivered, they may want to use a commercial draft.

A commercial draft typically specifies what amount needs to be paid by what date. It is then sent to the buyer’s bank along with the shipping invoices. The bank then asks the buyer to sign the draft before turning over the invoices. After that, the goods are shipped to the buyer.

Banker’s Acceptance

In some cases, a seller might go even further than a commercial draft and require that the bank pay for the goods and then collect the money from the customer. If the bank agrees to do this, they must put it in writing — which is called a banker’s acceptance. It means that the banker accepts responsibility for payment.

Trade Credit Trends

Trade credit is widely used worldwide. In fact, the World Trade Organization estimates that 80% to 90% of all world trade relies on trade credit in some capacity. It’s so widespread that it’s given rise to a type of financing called accounts receivable financing (also known as invoice financing).

With invoice financing, a company that offers trade credit can get a loan based on their outstanding invoices, effectively enabling them to get paid early. When they receive payments from their customers, they give that money (plus a fee) to the financing company.

Recommended: Understanding Business Liabilities

The Takeaway

Trade credit in business is very common and occurs when one company purchases goods or services from another company but doesn’t pay until a later date.

Essentially an interest-free loan, trade credit can be particularly rewarding for young businesses or seasonal businesses that may find themselves occasionally strapped for cash. A key drawback of trade credit, however, is that the buyer is generally expected to pay the invoice relatively quickly, sometimes within a month or two. For many small businesses, that may not be enough time, and they might be better served by getting a small business loan.

If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.

With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.

FAQ

What is an example of trade credit?

Let’s say a restaurant offers kobe beef on its menu and gets its beef from a food supplier in Japan. The supplier offers them a 5/30, net 60 trade. This means that the restaurant has 60 days to pay for a shipment of beef. If they pay the invoice within 30 days, however, they will receive a 5% discount on the purchase price.

Are there any benefits to trade credit?

Yes, benefits of trade credit include interest-free financing for buyers, improves cash flow for buyers, increases sales volumes for sellers, and it builds strong relationships and customer loyalty for sellers.

When do businesses typically use trade credit?

Businesses use trade credit either when they do not have the capital on hand to make a purchase or they need to temporarily free up cash for other expenses. Trade credit is also a good option for young businesses that may not qualify for other forms of business financing.

Photo credit: iStock/Hiraman

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Source: sofi.com

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Michigan, the Great Lakes State, is full of beautiful seasons, craft beer and of course beautiful lakes. All these aspects make Michigan a good place to live. With its diverse landscapes, ranging from scenic coastlines to bustling centers, the state provides plenty of living experiences for newcomers. However, like any place, there are pros and cons to living in Michigan that potential residents should consider.

Is Michigan a good place to live?

If you’re moving to Michigan, you’ll be surrounded by natural and urban beauty. Large cities like Detroit and Grand Rapids provide city lifestyles with thriving arts scenes, while Ann Arbor is home to one of the country’s top universities, the University of Michigan. Michigan’s economy is powered by automotive manufacturing, healthcare, and education. Outside of the cities, Michigan is known for its stunning natural beauty, with four of the Great Lakes bordering the state and countless inland lakes and forests, making it a haven for exploration.

In Michigan, you’ll find an affordable cost of living compared to coastal states, but that comes with the challenges of long, harsh winters. The state’s culture is one of innovation, with residents taking pride in their automotive history, music scene, and love for the great outdoors. Whether you’re looking to live in a dynamic city or a quiet lakeside town, Michigan is a great place to call home.

Michigan state overview

Population 10,077,331
Biggest cities in Michigan Detroit, Grand Rapids, Warren
Average rent in Detroit $1,680
Average rent in Grand Rapids $1,707
Average rent in Warren $980

1. Pro: Michigan is an affordable state to live

Michigan’s cost of living is particularly affordable when it comes to renting, making it an attractive place to live. In cities like Grand Rapids, the average rent for a one-bedroom apartment is around $1,707, which is notably lower than many metropolitan areas across the U.S. Even more affordable options can be found in smaller towns and suburban areas, where rent prices can drop significantly below $1,000. For example, cities like Kalamazoo offer budget-friendly rental markets while still providing access to urban amenities. You’ll find that a one-bedroom apartment averages about $1,088 a month. Along with affordable rent, everyday living expenses such as groceries, utilities, and healthcare are generally lower in Michigan than in high-cost regions like the East or West coasts. 

2. Con: Michigan winters are intense

Michigan winters can be extremely challenging, especially in the Upper Peninsula and northern parts of the state. Heavy snowfall, icy roads, and frigid temperatures can last from November to March, making daily commuting and outdoor activities difficult. Cities like Grand Rapids and Detroit receive an average of 60-70 inches of snow each year, while areas closer to the Great Lakes experience even more due to lake-effect snow. For those not accustomed to dealing with extreme winter weather, the long, cold months can be a major drawback. 

Insider scoop: Make sure your vehicle is equipped with snow tires, and consider an apartment complex that has a snow removal service to avoid being snowed in during a storm.

3. Pro: Access to the Great Lakes

One of Michigan’s biggest perks is its proximity to the Great Lakes. With over 3,200 miles of coastline, there is plenty to do and see. Residents can enjoy boating, fishing, swimming, and beachcombing during the warmer months, particularly on Lake Michigan’s western shores or the quieter beaches of Lake Huron. Towns like Traverse City and Holland attract both locals and tourists for summer getaways, while other coastal towns offer peaceful living year-round. For those who appreciate lakefront living, Michigan provides unparalleled access to some of the largest freshwater lakes in the world.

4. Con: Infrastructure is poor

While Michigan’s natural beauty is a major draw, its infrastructure is often in need of repair. Many roads and highways, particularly in urban areas like Detroit, are filled with potholes, leading to frustrating commutes and costly vehicle repairs. Though the state has invested in some improvements, there’s still much to be done in terms of road maintenance.

5. Pro: The craft beer scene is amazing

Michigan has earned a reputation as a craft beer lover’s heaven, with a thriving brewery scene that ranks among the best in the country. Home to over 400 breweries, the state offers a wide variety of locally crafted beers, from rich stouts and hoppy IPAs to innovative sours and seasonal brews. Cities like Grand Rapids, dubbed “Beer City USA,” lead the charge with renowned breweries such as Founders Brewing Co. and Brewery Vivant, while other cities like Kalamazoo and Ann Arbor are also major players in the craft beer world.

Insider scoop: For a truly unique experience, visit Bell’s Brewery in Kalamazoo, one of the oldest and most famous breweries in the state.

6. Con: High auto insurance rates

One downside to living in Michigan is the state’s notoriously high auto insurance rates. Michigan has historically had some of the highest premiums in the country, due in part to its unique no-fault insurance system. This adds an extra financial burden for drivers, particularly when combined with the state’s harsh winters and deteriorating roads, which can lead to more frequent car repairs and accidents. 

7. Pro: Four beautiful seasons

Michigan offers a true taste of all four seasons, each with its own unique beauty. Spring brings blooming tulip fields in Holland, where the annual Tulip Time Festival draws visitors to see over six million tulips in bloom. Summer is filled with long, sunny days perfect for enjoying the state’s many lakes and beaches, especially along the shores of Lake Michigan in towns like South Haven and Grand Haven. Fall is arguably the most stunning, with vibrant foliage blanketing the state. Areas like the Upper Peninsula, especially Tahquamenon Falls State Park and Porcupine Mountains, are prime spots for leaf peeping. Winters are cold but perfect for snow sports, with ski resorts in places like Boyne Mountain and Crystal Mountain.

8. Con: Public transportation is sparse

Michigan’s public transportation system is limited, especially outside of its larger cities. While Detroit has the QLine streetcar and a bus network, the options are far from robust compared to major cities like Chicago. Ann Arbor, home to the University of Michigan, offers a more developed bus system (TheRide) within city limits, but for those in suburban or rural areas, reliable public transport is hard to come by. 

9. Pro: Great higher education opportunities

Michigan is home to some of the best higher education institutions in the country. The University of Michigan in Ann Arbor is a top-ranked public university, known for its prestigious programs in law, medicine, and engineering. Michigan State University in East Lansing is renowned for its agriculture, business, and veterinary programs, as well as its vibrant campus life and Big Ten athletics. Additionally, Michigan offers a wide variety of smaller liberal arts colleges, like Kalamazoo College and Hope College, which provide excellent academic opportunities with a more intimate campus experience. 

10. Con: Pesky mosquitos and bugs in the summer

Michigan’s natural beauty comes with a downside: pesky mosquitoes and other bugs. The state’s many lakes, wetlands, and forests create ideal breeding grounds for mosquitoes, especially in the summer months. Areas like the Upper Peninsula, known for its dense forests and outdoor recreation, can become especially bug-ridden during peak summer, making outdoor activities like camping or hiking less enjoyable without proper insect repellent. 

Insider scoop: To beat the bugs, many locals swear by repellant devices, which create a protective zone against mosquitoes without the need for sprays.

Pros and cons of living in Michigan: Overview

Pros Cons
Michigan is an affordable state to live in The winters here are intense
Access to the Great Lakes The infrastructure can use imporvements
The craft beer scene is amazing Very high auto insurance rates
Four beautiful seasons Public transportation is sparse
Great higher education opportunities Pesky mosquitos and bugs in the summer

Source: rent.com

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Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:

Explore how the 2024 presidential candidates’ tax plans could impact your finances and what to know before voting.

What tax proposals are the 2024 presidential candidates making, and how might these policies affect your finances? What should you know before voting on tax issues? Hosts Sean Pyles and Anna Helhoski discuss the key differences in the candidates’ tax plans and how to make informed decisions to protect your financial future. They begin with a discussion of the importance of tax policy, with tips and tricks on understanding credits and deductions, how taxes fund government services, and the long-term effects of tax laws on your paycheck.

Then, Anna talks to Amy Hanaeur, the executive director of the left-leaning Institute on Taxation and Economic Policy, to discuss the candidates’ specific tax proposals. They discuss proposals to cut corporate taxes, extend expiring tax cuts, provide child tax credits, and eliminate taxes on Social Security benefits.

Check out this episode on your favorite podcast platform, including:

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Episode transcript

This transcript was generated from podcast audio by an AI tool.

Sean Pyles:

Taxes. Nobody likes them, but it’s how we pay for government, from local police and fire departments to the folks at the national level who make our currency and on and on. So what’s a fair and effective tax structure? That’s an argument democracies have been having since the Greeks came up with the system of government, and it’s an argument that we’re still having in earnest in the 2024 presidential campaign.

Amy Hanaeur:

Two-thirds of the cost of making those individual tax cuts permanent would go to the richest fifth of Americans. So to the richest 20% of Americans. So just for a sense of what that would cost, in 2026 alone, that would cost more than $280 billion.

Sean Pyles:

Welcome to NerdWallet’s Smart Money podcast. I’m Sean Pyles.

Anna Helhoski:

And I’m Anna Helhoski.

Sean Pyles:

This is episode three of our Nerdy deep dive into presidential policy and personal finance. And today, Anna, it’s so exciting. We’re going to talk tax policy.

Anna Helhoski:

Wait, wait, don’t everybody leave yet. This is really important stuff. It has a huge effect on your bottom line, so you should know what the two presidential candidates are proposing to do with your tax dollars and then vote accordingly.

Sean Pyles:

Sometimes it’s hard to figure out exactly what this or that tax policy will do to your paycheck. There are proposals for credits and deductions and write-offs, and it can pretty quickly induce your brain to go on zombie status. But even just the broad strokes are important to understand, so we’re going to go through some of that today.

Anna Helhoski:

And remember, Sean alluded to this at the top of the show. Taxes pay for just about every government service you use. Every time you drive on a highway, every time you call 911. Every time you jangle cash in your pocket. Every time you pay for college with a federal student loan.

Sean Pyles:

Every time you get a letter delivered by the USPS. Every time you go to a national park. Every time your grandparents get a Social Security check. Every time you find yourself in a court of law. And every time you realize that national security is pretty important. All of that is the government at work and it’s funded by the money that comes out of your paycheck.

Anna Helhoski:

Is some government spending ridiculous? Yup. Some of my own spending is ridiculous, by the way, but I digress. You can argue over the size of government. A famous Republican anti-tax lobbyist named Grover Norquist once said his goal was to “reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.” But it’s hard to imagine how anything would get paid for if there weren’t taxes, including all those other campaign promises that candidates are making.

Sean Pyles:

Right. How would anything get done if it weren’t for, you know… government? But as we’ve been saying throughout this series, the most important part of all of this is that you are an educated voter. That you understand how the presidential candidates’ tax policies could affect you.

Anna Helhoski:

And then take that knowledge to the ballot box and vote your conscience. Or for a lot of us, take that knowledge to the mailbox after you’ve filled in your ballot at home.

Sean Pyles:

I’ve got to say I really love voting from the comfort of my couch, usually in my pajamas. As we’ve noted previously, we want to say at the outset that we are not here to take sides or fan the flames of an already contentious political season. Our goal here is the same goal that we always have at NerdWallet: to help you, our listeners, make smart informed decisions about the stuff that impacts your finances. Sometimes that means choosing the right credit card for your needs. Other times, that means voting for the candidate who you believe will help you achieve your life and financial goals. All right. Well, we want to hear what you think too, listeners. To share your thoughts around the election and your personal finances, leave us a voicemail or text the Nerd hotline at 901-730-6373. That’s 901-730-N-E-R-D, or email a voice memo to [email protected]. So, Anna, who is helping us sort through tax policy today?

Anna Helhoski:

Today, we’re speaking with Amy Hanaeur. She’s the executive director of the left-leaning Institute on Taxation and Economic Policy. Amy Hanaeur, thank you so much for joining us.

Amy Hanaeur:

Thanks for having me.

Anna Helhoski:

Unsurprisingly, Kamala Harris and Donald Trump have introduced some pretty different tax plans. So to kick off our discussion, I’m hoping you can give an overview of what stands out most to you in these plans.

Amy Hanaeur:

I would say there’s a pretty dramatic difference between Vice President Harris’s tax proposals and former President Trump’s tax proposals. It’s one of the biggest policy differences between these candidates.

Vice President Harris has plans to raise revenue from wealthy people and corporations. She’s also a little more concrete about her plans for the child tax credit, which helps middle-class families with children and other families with children. Trump has kind of a history of slashing taxes in ways that largely redound to wealthy people and corporations. He has also put forth some middle-class tax cuts. Those also will go to the wealthiest as well as to middle-class families. So I think his proposals all in all are more expensive and can make it a little harder to pay for the things that are spending priorities for either party.

Anna Helhoski:

Harris has come out with a number of tax breaks, including up to $50,000 for new small businesses, a $25,000 housing tax credit for first-time home buyers, and an increased child tax credit that includes $6,000 for new parents. Would these be effective policies and walk us through their feasibility?

Amy Hanaeur:

I would say that the $6,000 newborn child tax credit along with her proposal to restore the expanded child tax credits for older children that took place during the pandemic are very proven, very effective policies. And we know that the expanded child tax credit cut poverty almost in half. We know that it helped lots and lots of middle-class families. And we know that even at a time when unemployment was sky high, those child tax credits kept the economy moving and kept a lot of families solvent. And the new expanded $6,000 that she’s proposing for newborns is really important because that first year is so important developmentally for children, and so for families to have a little bit more resources in that first year, I think, makes a lot of sense.

The other two things that you asked about I think are a little more marginal in their effect and maybe not the very best approaches. The tax break, the $50,000 for new businesses is a little complicated because a lot of new businesses don’t actually earn enough to pay taxes. And so they would probably stretch that until when they are profitable, and then they would reduce their taxes once they are profitable further down the road. We just don’t think that that makes as much sense as some other approaches. The tax credit for new home buyers is an interesting idea. I think the Vice President is pairing that with some activities on the supply side to make sure that there’s more housing. But I think that those supply-side activities are a crucial part of that because if you just give a tax credit to new home buyers, it could end up driving up the cost of housing. I don’t think it’s the most important or the strongest part of her tax proposals.

Anna Helhoski:

And we need to have more housing supply in order to have more first-time home buyers.

Amy Hanaeur:

Anna Helhoski:

I want to shift over to Trump. He certainly wants to extend the 2017 tax cuts made under his administration, and he said he plans to lower the corporate tax rate even further. Can you remind us what was in the 2017 Tax Cuts and Jobs Act and what is set to expire next year? I know it was a complex law, but if you could give us the highlights.

Amy Hanaeur:

The 2017 tax law really cut the corporate rate from 35% to 21%, and the result of that was that corporate tax payments plummeted, and a lot of huge profitable corporations continued to pay far below the statutory rate. So the rate was 21%, but actually, lots and lots of corporations pay much, much less than that. Our research shows, and the research of a lot of other scholars shows that these kinds of cuts increase income and racial inequality. They also… This is kind of important. They send a massive windfall like 40 cents of every dollar to foreign investors because foreign investors own 40% of corporate stocks. That is just not a very well-targeted proposal, and it would really cost us a lot in revenue, which could reduce the ability of either party to execute on their spending priorities.

Anna Helhoski:

Has the former president said he wants all of those tax cuts renewed? Are there any proposed changes or is it just an extension?

Amy Hanaeur:

The corporate tax rate that I was just talking about is actually permanent, the cut that they already made. But as you said, he’s proposing further cuts to that corporate rate. So that’s a new proposal. That’s not an extension. The part that they made temporary were the individual components of the 2017 tax law, and they did that because it cost too much and it wasn’t possible to pass it with the policy mechanism that they were trying to use at the time because they were trying to do it with only one party’s support. In order to get it below the overall cost limit that is imposed on Congress, they made the individual tax cuts temporary. Former President Trump has said that he wants to extend all of the individual tax cuts that were in that 2017 law.

Anna Helhoski:

What has Harris said about that tax legislation?

Amy Hanaeur:

Well, she has said that with all of her tax cuts, there would not be a situation in which somebody earning less than $400,000 pays more. She has said that for the individual tax cuts, she wants to extend them for those earning less than $400,000 but phase them out over $400,000. I can say a little more about what the 2017 law did distributionally.

Anna Helhoski:

Amy Hanaeur:

If that’s helpful.

Anna Helhoski:

Absolutely.

Amy Hanaeur:

That law as a whole did deliver really large tax cuts to those in the top 1%, and that’s kind of a narrow sliver. I’m talking there about people with income over $800,000 a year. These cuts are the part that expire in 2025, but the Trump campaign wants to make them permanent. Two-thirds of the cost of making those individual tax cuts permanent would go to the richest fifth of Americans, so to the richest 20% of Americans. So just for a sense of what that would cost, in 2026 alone, that will cost more than $280 billion. It really does start to cut into revenue.

Anna Helhoski:

Have you seen any shifts in where Trump’s tax policy proposals are now versus when he was president?

Amy Hanaeur:

I would say that he’s kind of looking to just intensify his previous approach. Now, he’s floated some other things and his vice-presidential candidate has floated some other things, but in terms of concrete things on paper, it’s a little bit more of the same. He talked about, for example, repealing the tax on Social Security benefits. It would lower taxes for US households, I think, by an average of about $550 per household. But it would come with a big price because it would reduce Social Security and Medicare revenues by about $1.5 trillion over the next decade.

Anna Helhoski:

I want to talk specifically about Trump’s tariff proposal. He wants to do a 10% to 20% across-the-board tariff on all imports and up to 60% for goods from China. He has also suggested replacing personal income taxes with these new tariffs. Amy, how do tariffs on foreign countries and taxes for Americans intertwine?

Amy Hanaeur:

This is a sort of surprising proposal because it’s a real departure from the traditional way that Republicans have approached this issue. And frankly, a departure from how Democrats have approached this issue in recent years as well. Most economists absolutely agree that tariffs fall on consumers, but there can be reasons why advocates for particular industries, sometimes the owners, sometimes the workers, may want them at different times for particular economic development reasons or retaliatory reasons if they think that another country has appropriated a technology or industry that we had previously dominated in. I think what’s really challenging about the Trump proposal is that it is so across-the-board, and also that he hasn’t been very clear about exactly what he would do. So at some times, he has talked about 10% across-the-board tariffs. At other times, he has talked about 20% across-the-board tariffs. That’s a pretty big difference. And then he’s talked about, as you said, the additional 60% on China. An economist named Kim Clausing estimated 20% across-the-board tariffs would cost the typical household $2,600 a year. It’s a substantial hit to families and it manifests itself much in the way that inflation does. It would just be basically every product that every household buys would end up costing more.

Anna Helhoski:

Now, the Biden administration has largely kept the tariffs that Trump imposed during his previous term. What has Harris said about that and her view in general on tariffs?

Amy Hanaeur:

I’m not sure that she has said that much. I think that this is a part of the Biden administration policy that they are perhaps somewhat quiet about. I think it’s challenging to repeal those tariffs for political reasons. But I think from a policy perspective, it’s just important to note that they do fall on households. They’re not as large as those 20% across the board and 60% on China tariffs that the former president is putting forth. So they don’t have the same kind of impact, but it is kind of universally accepted that those kinds of tariffs do fall on consumers in terms of increasing prices.

Anna Helhoski:

More of our interview in a moment. Stay with us. Amy, real quick, I just want to turn back to Social Security for a second. Trump had said that he wants to get rid of the tax on Social Security. What would be the impact of that on the average American? What would that mean for their paychecks right now and for the prospect of them having Social Security when they reach retirement age?

Amy Hanaeur:

The Tax Policy Center did an analysis of this proposal and found that it would lower taxes for US households by an average of $550 a year. But at a big, big cost because it would end up reducing revenues in Social Security and Medicare by about $1.5 trillion with a T over the next decade. This would end up driving both programs into insolvency much faster, and so it would end up resulting in sharply reduced benefits for tens of millions of recipients. And the Tax Policy Center has not yet estimated, I don’t believe, the exact nature of those benefit reductions, but we know that Social Security is just one of our most important social programs, pulls a huge number of people out of poverty. The elderly used to be the poorest population age group in the United States, and after Social Security was put in place, they became the least likely to be poor among American households. So it’s really a huge part of our social safety net and just a huge part of our society.

Anna Helhoski:

Now, Trump and Harris don’t agree on very much, but one place where there is overlap is that both candidates have proposed to lift the tax on tips. Can you explain that for us and what it would mean for the average American, both those who receive tips and those who pay them?

Amy Hanaeur:

Getting rid of taxes on tips is probably more about politics than about creating a great public policy. First of all, a very small share of the workforce receives all of its income from tips. And so it would be kind of flawed because do we really think that a waitress who earns a very modest salary and a teacher’s aide or a teacher or a nurse’s aide who earns a really modest salary, do we really think that the waitress should pay a lower tax rate than a teacher or teacher’s aide or nurse’s aide who earns the same amount? And that would be the effect of this policy. It would also really encourage shifting some compensation to tips. So high-paid professionals could ask that their fees instead be structured as tips.

Now, Vice President Harris does have a check in place for her proposal that kind of gets at that because she has suggested ways that it could be targeted toward those earning under $75,000 a year. That certainly makes a big difference in terms of the possibility for gamesmanship by very wealthy earners. But fundamentally, we just think there are better ways at getting at helping low-wage workers who receive tips. Namely, we could get rid of the tipped wage. We could say that every worker deserves a minimum wage. The sub-wage for tipped workers is $2.13 an hour at the federal level. So we’re talking about a ridiculously low wage in 2024.

Anna Helhoski:

It seems like either candidate will struggle to bring forth most of these proposals if there’s not enough support in Congress. Either Harris’s or Trump’s proposals, what do you see there being congressional support for? And is there anything that Harris or Trump could do unilaterally?

Amy Hanaeur:

Obviously, a lot depends on the composition of Congress. So if either side gets a trifecta, if we have Republicans taking both Houses and the presidency, I would expect that former President Trump would be able to again cut taxes on billionaires and again cut taxes on corporations. I don’t think his Social Security proposals would go through under any party because Social Security is sort of famously the third rail of American politics, and it really does disrupt our social structures to think about reducing the funding available to pay for Social Security.

For Vice President Harris, if she were to get a trifecta, I think she would probably succeed in getting some of those revenue raisers. I could see her getting through the extensions of the individual tax cuts for those earning less than $400,000 but getting rid of them for those earning more. And in the perhaps most likely situation where we have divided government, I think a lot of this would be up for debate, and I think we’d end up seeing some mishmash of these two approaches.

Anna Helhoski:

Amy, what have we not seen Kamala Harris or Donald Trump weigh in on that you think is an oversight?

Amy Hanaeur:

There are pieces that are in Kamala Harris’s written proposals that don’t get a lot of attention. And one of the big ones is something very obscure called stepped-up basis. Sometimes people call it buy, borrow, and die. That basically says that for very wealthy people, if they acquire stocks or other assets that really grow in value over the time that they own those assets, that if they pass those on to heirs without selling them first, nobody ever pays taxes on the difference in value. So that’s always something that I think should get more attention. But it’s complicated to explain. As you can see with my efforts to explain it, it’s just complicated. And it’s easier to say, “We’re going to raise the corporate tax rate or we’re going to lower the corporate tax rate.” I think that’s something that could get more attention.

Anna Helhoski:

Is there anything else you want to call out about Harris or Trump’s tax plans?

Amy Hanaeur:

I would just say the big picture is: The Harris approach raises more revenue. It raises it primarily from the wealthiest and corporations. The Trump approach puts us deeper in debt and gives a lot more away to wealthy people and corporations. And both of them, I think, have some proposals that would help middle-class families on the tax side.

Anna Helhoski:

All right. Amy Hanaeur, thank you again for talking with me today.

Amy Hanaeur:

Yeah, thank you so much.

Anna Helhoski:

Sean, I want to emphasize one thing before we wrap up, and that’s how much authority the Executive Branch has to change taxes. The president does technically have the power to tax, but they generally don’t exercise that. What they do is press Congress to pass policies that they want. What we don’t know right now is what campaign promises will have bipartisan appeal once we have both a new administration and a new congressional makeup.

Sean Pyles:

You know, Anna, tax is a funny thing, where you make one change in one area and it can have drastic, sometimes unintended ripple effects in other areas. Two examples that come to mind are how Harris providing a tax credit for first-time home buyers could drive up home prices, and how Trump’s tax cuts exacerbated racial and wealth inequality. And these examples underscore how complicated and confusing tax policy can be. But it’s really, really important for all of us to engage with this since a number of components of the Tax Cuts and Jobs Act of 2017 will sunset in 2025. So we have a unique opportunity right now to reshape taxes and our votes will have a hand in that.

Anna Helhoski:

And one thing that Amy Hanaeur didn’t delve too deeply into is the no tax on tips policy that both Trump and Harris are endorsing. But fortunately, listeners, we did go into no tax on tips in a previous episode. So have a listen to our August 21st episode on that topic, which we’ll also link to in today’s show notes.

Sean Pyles:

Anna, tell us what’s coming up in the fourth and final episode of the series.

Anna Helhoski:

Sean, we’re going to talk about two specific areas of policy that affect a large swath of voters: student loans and healthcare.

Eliza Haverstock:

The fate of the repayment plan is now largely in the hands of the courts. However, the president can influence the situation by directing the Justice Department how to proceed with appeals. Harris would likely continue to vigorously defend the SAVE plan in court. Meanwhile, Trump is not likely to defend SAVE.

Anna Helhoski:

For now, that’s all we have for this episode. Do you have a money question of your own? Turn to the Nerds and call or text us your questions at (901) 730-6373. That’s (901) 730-N-E-R-D. You can also email us at [email protected]. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.

Sean Pyles:

This episode was produced by Tess Vigeland and Anna. I helped with editing. Rick VanderKnyff and Amanda Derengowski helped with fact-checking. Megan Maurer mixed our audio. And a big thank you to NerdWallet’s editors for all their help.

Anna Helhoski:

And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.

Sean Pyles:

And with that said, until next time, turn to the Nerds.

Source: nerdwallet.com

Apache is functioning normally

When people think of Oakland, they often picture its vibrant, urban atmosphere, but the true essence of living in Oakland extends beyond the city itself. The suburbs of Oakland are diverse residential areas that offer a quieter, more relaxed lifestyle while still providing easy access to the city’s cultural and recreational amenities. These Oakland suburbs are spread across the East Bay region, each with its own unique character and appeal.

In this ApartmentGuide article, we’ll explore some of the most notable Oakland suburbs—from the hillside retreats to waterfront communities—highlighting key aspects such as population, average rent, and what makes each area stand out. Whether you’re searching for the perfect apartment in Oakland or curious about the surrounding Oakland neighborhoods, let’s discover the best parts of Oakland to call home.

Cost of living in Oakland

Before we dive into the top Oakland suburbs, let’s cover how much it costs to live in Oakland. The overall cost of living in Oakland is 40% higher than the national average. Housing is a major factor, with the median sale price for a home in Oakland at around $812,500, which is over 88% higher than the national average of $432,657. Rent follows a similar trend, with the average rent for a one-bedroom apartment in Oakland at $2,629, about 74% more than the national average of $1,514.

While some suburbs around Oakland offer more affordable housing options, others can be equally expensive, depending on location and amenities. Here, we’ll explore a range of top suburbs, providing different lifestyle and housing opportunities based on your budget and preferences.

1. Piedmont

Known for: Tree-lined streets, quiet residential feel, historic homes

Piedmont is a small, affluent enclave entirely surrounded by Oakland. This serene, residential neighborhood is known for its beautiful, historic homes and peaceful, tree-lined streets. Many homes in Piedmont are elegant, early 20th-century properties with well-maintained gardens. While it’s just a few minutes away from the bustling city, Piedmont offers a distinctly suburban vibe and a tight-knit community. Residents enjoy nearby parks, including Dracena Quarry Park and the scenic Piedmont Park.

Population: 11,400
Median home sale price: $1,940,000
Piedmont transportation scores: Walk Score 45, Bike Score 47, Transit Score 42

Apartments for rent in Piedmont, CA | Houses for rent in Piedmont, CA | Homes for sale in Piedmont, CA

2. Alameda

Known for: Island living, Victorian homes, beach access

Alameda, located just west of Oakland, offers island living with a laid-back, coastal atmosphere. With its proximity to the Bay and stunning views of San Francisco, Alameda is known for its charming Victorian homes, diverse neighborhoods, and beautiful beaches. Crown Memorial State Beach is a popular spot for windsurfing, picnicking, and enjoying sunsets. The area’s pedestrian-friendly streets and waterfront parks make it a perfect place for those seeking a peaceful escape from city life.

Population: 78,000
Average rent for a one-bedroom apartment: $3,125
Median home sale price: $1,037,500
Alameda transportation scores: Walk Score 68, Bike Score 77, Transit Score 42

Apartments for rent in Alameda, CA | Houses for rent in Alameda, CA | Homes for sale in Alameda, CA

3. Emeryville

Known for: Tech hub, vibrant downtown, proximity to San Francisco

Emeryville is a small, modern suburb nestled between Oakland and Berkeley. Known for its tech-driven economy and vibrant downtown area, Emeryville attracts professionals who work in both Oakland and San Francisco. The city boasts a mix of upscale apartment complexes, loft-style living, and waterfront parks, including the scenic Emeryville Marina. Residents enjoy easy access to shopping at the Bay Street Emeryville Mall and an array of trendy restaurants and cafes. Its central location and direct access to major highways make it an attractive option for commuters.

Population: 12,000
Average rent for a one-bedroom apartment: $3,193
Median home sale price: $510,000
Emeryville transportation scores: Walk Score 91, Bike Score 94

Apartments for rent in Emeryville, CA | Houses for rent in Emeryville, CA | Homes for sale in Emeryville, CA

4. Montclair

Known for: Hillside views, natural beauty, residential feel

Montclair is an upscale neighborhood nestled in the Oakland Hills, known for its stunning hillside views and tranquil residential atmosphere. This community features a mix of large, modern homes and mid-century properties, many with panoramic views of the Bay. Montclair Village is the neighborhood’s charming commercial hub, offering boutique shopping, cafes, and a weekly farmers’ market. With several nearby hiking trails in Redwood Regional Park and Joaquin Miller Park, Montclair is perfect for outdoor enthusiasts who want to stay connected to nature.

Population: 9,000 (approx.)
Average rent for a one-bedroom apartment: $1,503
Median home sale price: $700,000
Montclair transportation scores: Walk Score 57, Bike Score 54, Transit Score 33

Apartments for rent in Montclair, CA | Houses for rent in Montclair, CA | Homes for sale in Montclair, CA

5. Berkeley

Known for: University town, cultural hub, progressive community

Berkeley, just north of Oakland, is a vibrant, university town known for its academic and cultural prominence. Home to the University of California, Berkeley, the city has a vibrant energy with a progressive, artsy vibe. Berkeley offers a wide range of housing, from historic homes in the hills to student apartments and modern condos near downtown. The city is filled with cafes, bookstores, and a thriving arts scene. With its numerous parks, including Tilden Regional Park, residents enjoy access to both urban amenities and outdoor activities.

Population: 124,000
Average rent for a one-bedroom apartment: $2,315
Median home sale price: $1,425,000
Berkeley transportation scores: Walk Score 85, Bike Score 83, Transit Score 60

Apartments for rent in Berkeley, CA | Houses for rent in Berkeley, CA | Homes for sale in Berkeley, CA

Methodology: The suburbs included in this list were selected based on their overall popularity, determined by search trends and housing demand in the Oakland 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.

Apache is functioning normally

From bustling urban centers to serene coastlines and a rich historic heritage, Maryland offers residents a diverse range of lifestyles to enjoy. Whether you’re drawn to its proximity to Washington, D.C., or the charm of the Chesapeake Bay, it’s a place filled with both opportunities and challenges. If you’re wondering, Is Maryland a good place to live?, this article will dive into the pros and cons of living in Maryland, so you can make an informed decision.

Is Maryland a good place to live?

Moving to Maryland provides an eclectic mix of urban energy and coastal relaxation. The largest cities, including Baltimore, Germantown, and Columbia, have distinct vibes. Baltimore is known for its bustling harbor, rich maritime history, and iconic local cuisine, especially its famous crab cakes. Columbia, on the other hand, offers suburban comforts and a growing job market. Maryland’s central location between Washington, D.C., and Philadelphia makes it an ideal base for commuters seeking easy access to both major cities.

The state is home to major employers like Johns Hopkins University and Under Armour, making it a hub for healthcare and technology sectors. Education in Maryland is strong, with excellent public school systems and top-tier universities like the University of Maryland. Maryland also has a thriving cultural scene, from the world-class museums in Baltimore to Annapolis’ maritime history and lively festivals celebrating everything from seafood to arts.

Maryland state overview

Population 6,177,224
Biggest cities in Maryland Baltimore, Columbia, Germantown
Average rent in Baltimore $1,455
Average rent in Columbia $2,191
Average rent in Germantown $1,693

1. Pro: Proximity to major cities

Living in Maryland means easy access to major cities like Washington, D.C., Philadelphia, and even New York City. If you live in places like Silver Spring or Rockville, you’re just a short drive or Metro ride away from Washington, D.C. This proximity makes it ideal for those who want to work in the capital but prefer a more suburban lifestyle. Maryland’s location also makes weekend trips to Philadelphia or NYC entirely doable.

Travel tip: If you’re planning a quick trip to NYC, consider taking the Amtrak from Baltimore’s Penn Station—the Acela Express will get you there in just under three hours, avoiding the hassle of driving and parking in the city.

2. Con: High cost of living

With all that convenience comes a price, and renting in Maryland can be costly depending on where you choose to live. Cities like Bethesda and Rockville in Montgomery County see some of the highest rental rates, with the average one-bedroom apartment costing around $2,431 per month. Annapolis, known for its waterfront charm, also carries a premium, with average rents hovering around $2,231. In contrast, cities like Frederick offer more affordable options, where one-bedroom apartments average between $1,863. Overall, rental rates in Maryland are higher than the national average, and combined with rising costs in groceries, healthcare, and utilities, budgeting can be a challenge for many residents.

3. Pro: Abundant outdoor recreation

If you’re an adventurer, Maryland provides a diverse range of landscapes. From the Appalachian Mountains in the west to the Chesapeake Bay and Atlantic beaches in the east, the state has it all. You can hike the C&O Canal, kayak in the bay, or relax on the shores of Ocean City. For those who enjoy winter sports, the mountains in Western Maryland even offer skiing and snowboarding. Nature is always nearby, and you’ll never run out of places to explore.

Insider scoop: For a unique experience, head to Assateague Island, where you can camp right on the beach and wake up to wild horses grazing by the shore.

4. Con: Traffic congestion

Maryland’s proximity to major metropolitan areas comes at a cost—traffic. If you commute into Washington, D.C., Baltimore, or any of the state’s larger cities, be prepared for significant congestion, especially during rush hour. The I-495 Beltway and I-95 are notorious for backups, with commutes sometimes stretching over an hour.

5. Pro: Strong job market

Maryland has a robust job market, with opportunities in healthcare, education, technology, and government sectors. The presence of top employers like Johns Hopkins and the National Institutes of Health ensures strong growth in the medical and biotech fields. Maryland’s proximity to D.C. also means a wealth of government and contracting jobs. Plus, the tech sector is booming in hubs like Columbia, creating even more opportunities.

6. Con: Humid summers

Summers in Maryland can be oppressive, especially in July and August. The humidity makes temperatures feel hotter than they are, often climbing into the 90s. If you’re not a fan of sticky, muggy weather, the summer months can be uncomfortable. The combination of high heat and humidity can make outdoor activities less enjoyable, and air conditioning becomes essential for surviving the season.

Insider scoop: If you’re renting an apartment in Maryland, invest in a good dehumidifier to help keep the humidity in check indoors. It’ll make a big difference in your comfort level and even help prevent issues like mold and mildew, especially in older buildings with less ventilation.

7. Pro: Great education systems

Maryland’s public schools consistently rank among the best in the nation. Maryland also has prestigious universities, including Johns Hopkins University, the University of Maryland, and the U.S. Naval Academy in Annapolis. Whether you’re looking for quality K-12 education or higher education, Maryland delivers.

8. Con: Heavy tax burden

Maryland residents face some of the highest tax burdens in the country, including income, property, and sales taxes. The state income tax rates can range up to 5.75%, depending on your earnings, and local jurisdictions can add even more on top of that. Property taxes are also higher than the national average, which can put a strain on homeowners, especially in the wealthier counties.

9. Pro: Cultural and culinary diversity

Maryland’s cultural diversity is reflected in its food, arts, and festivals. From the famous crab cakes of the Chesapeake Bay to Baltimore’s growing foodie scene, Maryland is a haven for food lovers. The state celebrates its maritime heritage with annual events like the Maryland Seafood Festival and the Annapolis Sailboat Show. And if you’re into the arts, Baltimore’s museums, theaters, and galleries will keep you busy. 

Insider scoop: Don’t miss the chance to explore the Preakness Stakes at Pimlico Race Course each May, a thrilling horse race that embodies Maryland’s equestrian culture.

10. Con: Unpredictable weather

The weather in Maryland is unpredictable. While the state enjoys four distinct seasons, you can experience a wide range of weather conditions in a short period. Winters can bring snowstorms, while summers can see severe thunderstorms and occasional hurricanes, particularly along the coast. Spring and fall are usually mild, but you never know when a sudden cold front or heatwave will appear, making it tricky to plan outdoor events.

Pros and cons of living in Maryland: Overview

Pros Cons
Proximity to major cities High cost of living
Abundant outdoor recreation Heavy commute times
Strong job market Humid summers
Great education systems Heavy tax burdens
Cultural and culinary diversity Unpredictable weather

Source: rent.com