3 Financial Benefits of Living in a Studio Apartment

Hard to believe, but it is actually 5 years to the day that I moved into my studio apartment. Living life on my own has been quite an experience. I have learned a lot in those years and would like to share with you 3 financial benefits of living in a studio apartment!

Purchasing a studio apartment was definitely one of the better moves that I made in my life.

For those who don’t know, I own a Co-op apartment. If you don’t know what a Co-op is, Investopedia has a good article describing this type of apartment dwelling. It is something you may want to consider for yourself.

In a Co-op type building, you pay what is called monthly “maintenance fees” (everyone in the building pays to cover the operating expenses of the building). To keep things simple, I will simply refer to this as “rent” since it pretty much acts in the same function.

Studio apartments are basically apartments where the bedroom, kitchen, and living room are contained in a single large room.

There are different designs for a studio apartment with some having separate kitchen areas. Also, included is a private bathroom area.

Here are some pictures of my own studio apartment.

My experience with a studio apartment has been very positive. Of course, you still experience the problems and headaches that comes with any type of home ownership. For example, I’ve had pipes break in my bathroom break on me two times.

Luckily, I did not have to pay for repairs since the rules of my Co-op building dictate that any problem inside the wall is the buildings responsibility to pay for. But that is more of a benefit of owning a Co-op, rather than a studio apartment in general.

3 Financial Benefits of Living in a Studio Apartment

A studio apartment may not be for everyone, depending on your lifestyle, preferences, and family needs. But there are certain benefits that come with living in a studio.

So, here are 3 financial benefits of owning a studio apartment!

1. Lower Housing Costs

Want to save loves of money on rent and/or homeownership? It is no secret that housing costs can take up a huge percentage of a person’s monthly expenses.

The great thing about studio apartments is they generally are less expensive than one-bedroom apartments.

Depending the location, square footage, and amenities (like luxury buildings have, etc.), studio apartments will usually be several hundred dollars cheaper to rent than one-bedrooms.

Bare in mind that the price will be affected by the place you live in. A studio in the mid-west United States will almost certainly be a lot cheaper to rent then in the north east United States. This will require some research on your local area.

I live in New York City, where the average price to rent a studio apartment is $3,638 while the average price to rent a one-bedroom is $4,761 as of 2022 in Manhattan.

Ridiculous right? Luckily, I pay nowhere need that.

When first searching for a home, I had a choice between renting a one-bed room (5 years ago for about $1,200 to $1,400 per month here in Queens) or buying a studio in a Co-op building with all cash (also in Queens) and paying $507 per month (in 2017).

I chose to buy the studio apartment (which I can sell whenever I decide to move – hopefully for a higher price). With that that purchase, as of 2022, I currently pay $614 in rent per month (“maintenance fee”, as described above).

Only a fraction of my income goes towards monthly rent payments.

If you are looking to keep rent or housing costs low, then a studio is a great option.

2. Less Cleaning and Maintenance Expenses

One of the obvious benefits of having less square footage is that there is much less cleaning involved.

There is much more time, money, and energy put into cleaning a house and even a one-bedroom apartment then a studio apartment.

The average American family spends roughly $40-50 per month on cleaning supplies (around $600 per year).

I don’t think I’ve ever broke spending $50 a year on cleaning supplies. I vacuum my rug each week and give my apartment a good full cleaning about every three months with a swifter and some Clorox spray and glass cleaner.

A studio apartment is very easy to maintain.

The average time the average American spends cleaning their household is roughly 6 hours per week. That is about 24 hours a month – equal to a full day of cleaning.

A full cleaning of my studio apartment takes under 30 minutes. Best of all, my apartment stays clean for months after since I am quite tidy and don’t have any clutter. Thus, freeing up precious time.

Your results may vary depending on how much stuff you have, but for a minimalist guy like me, it’s a breeze.

3. You Need Less Stuff

So, you just moved into a new house or apartment? What comes next? Unless you moved your possessions from your previous residence, it usually means new furnishings.

If you are moving to a larger residence or it’s your first time moving out on your own, you will more then likely need to buy furniture.

The average American spends about $6,000 on furniture each year.

Sofa’s, televisions, TV stands, coffee table, end tables, chairs, lighting fixtures, beds, dressers, night stand, dining table, blinds/curtains, and the list goes on for each room.

With a studio apartment you do not need hat much furniture. With limited space, you need minimal stuff. This can save you thousands of dollars on needing to furnish a home.

When I first moved 5 years ago, I bought some new furnishings. I bought two lighting fixtures, a TV stand, shower curtains, two tray tables, and a rug. I didn’t buy a sofa yet. Instead, I waited a few months to find a good deal. In the meanwhile, I just sat on a chair.

Overall, I spent about $1000 on new furnishings (including the couch). As for the bed, television, and dresser, I just brought the ones from my old residence.

Over the lest 5 years, I have upgraded my furniture over time. For example, recently I purchased a new full-sized bed. Over the years, I also bought a desk, one end table, and new curtains.

I have all the furniture I need. Studio apartments are quite easy to furnish.

Conclusion: Put Those Savings to Work!

And there are 3 financial benefits of living a studio apartment.

Honestly, those 5 years have gone by so fast. I do wish time would slow down a bit. And yet, most of the time I lived here was quite enjoyable.

Purchasing a studio apartment was one of better moves I made in my life. I am saving most of my working income each month. You can save great amounts as well!

What to do with the money you save? Why not put it to work for you?

I invest the money I save into dividend growth stocks. Over the past 5 years, I’ve built a six-figure portfolio that generates a yearly average of over $1,000 per month in dividend income!

A studio apartment allows you to keep you expenses low, save your money, and invest those savings. Build you own streams of passive income and achieve financial freedom!

It feels great to make over $1,000 per month while I sleep. I am building my dividend dynasty and so can you!

So, what are your thoughts? How expensive are studio apartments in your area? Is it something you would consider? Let me know in the comments below!

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