Jul 2, 2025
Consider this scenario: A 25-year-old woman with epilepsy currently relies on friends, family and Uber lifts not only to get to work but around more generally, in a city where transit is limited and unreliable.
To gain independence, she wants to move to a rental apartment within walking distance of her work. The catch? The rent is $1,600 per month — almost 50% of her $50,000 salary.
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On the upside, her transportation costs would be lower if she moves closer to work, and she’s willing to make sacrifices to her discretionary spending to do it.
So is moving into this expensive apartment worth it for the greater independence she will gain?
The cost of living for young people with disabilities
Unfortunately, she’s not alone in grappling with this dilemma. Many Americans with disabilities pay more to enjoy the same standard of living as peers without disabilities.
According to the National Disability Institute, 20 million working-age Americans live with some form of disability and must spend 28% more on average to achieve the same standard of living as their counterparts without disabilities.
Compounding the cost-of-living challenge for Gen Zers is a lack of affordable housing. Younger Americans are spending more on housing than previous generations.
The New York Times reports that, as of 2022, 5.2 million Gen Zers were spending 40% of their income on rent.
On the upside, if the character in our scenario moves, she would save on transportation costs, and she’s already ahead because she doesn’t have to worry about the cost of buying a car and ongoing maintenance and insurance costs.
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Newsweek reports that two in every five Americans spend 20% of their monthly income on their vehicles, a figure that may rise as tariffs take hold.
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Stress-testing your budget
The first step toward determining whether a new apartment is affordable is to write out a budget.
The classic 50/30/20 budget breakdown is a good starting point. Here’s what that looks like:
- 50% of your income on essentials, including a maximum 30% of your pre-tax income on housing
- 30% of your income on discretionary spending, including travel, hobbies and dining out
- 20% of your income towards savings, or savings and debt payments.
Then examine how you’re actually spending your money — now, not in the future. This will help you set a new budget that’s realistic.
To do this, gather up your bank and credit card statements from the last year and work out what you’re currently spending on essentials, discretionary spending and savings. You can even run a stress test in which you live on your new budget for a month to see if it’s doable.
Put away the extra money that would go towards “rent” into an emergency fund.
If you find it’s possible to get through the month on your proposed budget without too much stress or a feeling that you’re missing out on having fun, then the costly apartment may be worth it.
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Make sure your new budget allows you to continue saving towards an emergency fund and that it doesn’t require you to use credit cards to cover expenses. Pay down debts so unexpected expenses don’t leave you scrambling to cover your bills at the end of the month.
Finally, if you’re going to spend more on your home, try to get as much enjoyment out of it as possible.
Since you’ll likely be trimming your budget for entertainment and dining out, make a point of moving into a place where you can entertain at home.
If you like to host dinner parties or board-game nights, invest in a good dining table that your friends can gather around. If you like to watch sports or play video games, try to get a comfortable couch and chairs, and a large, sturdy coffee table.
If outdoor space is important, prioritize a place with a balcony, access to a backyard, or one situated near a park.
Whatever your idea of fun is, be sure the sacrifice in your disposable income is worth it and doesn’t eat into your quality of life in ways you didn’t expect.
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
