The cost of living may be rising, but American spending habits aren’t slowing down. Household debt reached record-high levels in the third quarter of 2025, with outstanding credit card balances rising 5.75% from last year. Meanwhile, total holiday shopping is expected to top $1 trillion this season.
Beyond gifts and retail, some consumers are channeling their spending toward experiences, and as winter weather sweeps in, many are turning to travel as a way to escape. A recent survey by global eSIM company Nomad found that 54% of Americans plan to take a trip this winter despite economic uncertainty.
With domestic trips averaging $3,904, according to travel insurance company Squaremouth, a holiday away may stretch budgets more than people realize. In fact, a Zoocasa survey found that 29.3% of renters have delayed traveling because of high housing costs.
To better put travel spending into perspective, Zoocasa compared the $3,904 vacation budget to monthly rent prices across America.
A Domestic Trip Equals Two Months Rent in Most Cities
Although the national median rent of $1,381 decreased by 0.8% in October, some major metros saw significant price gains. According to Apartment List, rent prices increased by more than 3% in Providence, San Francisco, Chicago, Minneapolis, and Pittsburgh. On the other side of the spectrum, Austin, Denver, Phoenix, and Las Vegas are seeing price relief.
Though rent demand may fluctuate, travel demand isn’t—particularly for young people. Nomad’s data shows that 54% of Millennials and 44% of Gen Z are planning a domestic trip this winter, and 22% and 19%, respectively, are planning an international trip. These rates significantly outpace older generations (Generation X, Baby Boomers, and Silent Generation), highlighting a willingness to prioritize travel despite lower median incomes.
But depending on where you live, your travel budget may be twice the cost of your monthly rent, something young renters may need to take into consideration before swiping their credit cards.
With an average rent of just $1,097, Oklahoma City boasts one of the lowest rents nationwide. However, this low rent accounts for only 28% of the $3,904 travel budget, meaning renters need to save the equivalent of 3.6 months of rent to go on vacation. The median income for nonfamily households (as defined by the U.S. Census as a householder living alone or sharing a home with people to whom they are not related) in Oklahoma City is low at just $44,796, further challenging travel affordability.
A Zoocasa survey published earlier this year revealed that the majority of renters want to become homeowners, but turning that dream into a reality requires smart financial planning. A vacation that costs as much as two months’ rent, if taken before you’ve established an emergency fund or down payment savings, could delay your entry into the housing market by several years.
Renters in Chicago, Phoenix, Tampa, and Sacramento will need to spend the equivalent of two months’ rent to afford their domestic vacation. In Detroit, San Antonio, Austin, and Cincinnati, a vacation will cost more than three months’ rent.
Can You Afford Your Rent and a Winter Getaway?
How much income is left over after paying for annual rent and one domestic vacation? In most cities, the answer is: not enough.
Renter budgets are most constrained in New York City, where the cost of rent and vacation eats up 51% of the median income of $60,822. That leaves $29,546 remaining to cover food, transportation, healthcare, and leisure expenses. That might sound like a lot, but allocating 51% of your budget to rent and vacation expenses significantly exceeds the typical financial advice, which suggests dedicating no more than 30% of income to housing.
In both Miami and Los Angeles, renters face similar financial pressure, with a substantial portion of their income—51% and 47%, respectively— allocated to rent and vacation expenses.
Austin is the only city where renters can pay their annual rent and splurge on a vacation while still falling below recommended spending guidelines. The cost of annual rent and a $3,904 vacation requires just 29% of the median income, leaving Austin renters with considerable financial flexibility.
A winter vacation is also affordable for Denver and Raleigh renters, with just 33% and 34% of their respective incomes spent on housing and vacation costs. In Denver, this is largely possible thanks to its high median income of $72,547, which ranks as the sixth-highest among the 50 cities analyzed.
Why Your Income vs. Rent Defines Your Financial Future
When it comes to financial stability, the cost of living plays a huge role. You can earn a six-figure salary and still have debt if your rent requires 40% of your income. Alternatively, a low salary doesn’t mean you can’t build wealth. Someone with a low income and correspondingly low housing costs can be significantly better off financially than those living in areas with a high cost of living.
San Jose is an excellent example of this. The median non-family household income in San Jose is $100,056; however, with rent at $3,079, renters need to allocate 37% of their income to cover housing costs. Overspending on housing can have a ripple effect, negatively impacting other areas of your finances. This situation could force you into a cycle of credit card debt or require you to use your entire salary to cover essential daily expenses, such as food and transportation. Consequently, this eliminates any opportunity to build a retirement fund or savings.
This is why living in low-cost-of-living cities like Cincinnati or Pittsburgh can help accelerate your homeownership goals while still allowing you to splurge on travel. A Cincinnati renter, despite earning just $49,849, spends only 28.8% of their income on rent, leaving sufficient funds for travel, food, and other necessities.
Smart Budgeting Can Finance Your Future Trips and Goals
At the end of the day, everyone deserves a chance to rest and recharge. But a vacation shouldn’t come at the expense of your long-term financial goals. Swapping your weeklong tropical retreat for a three-day road trip may mean the difference between funding your future and overspending on credit cards.
Before planning your next getaway, take a look at your current budget to determine if there’s room for discretionary spending, such as travel. Consider your long-term goals, whether it’s buying a house or seeing all eight wonders of the world, and align your budget accordingly.
If you dream of owning a home one day, then cutting back on weekly lattes likely won’t get you anywhere. But skipping your annual or even biannual thousand-dollar vacation? That just might tip the scale.
Thinking of making the jump from renting to owning? Start your search today! You might just find the home you’ve been dreaming of.
