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To put it mildly, the present property market is difficult.
But in a number of important American cities, buying is actually less expensive than renting, according to new Realtor.com research.
It might be useful to know if it’s better to purchase or rent in your neighborhood if you’ve been having trouble making your monthly payments. These are the top five cities to purchase in, and then these are the top five cities to think about renting.
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Birmingham, Alabama
$1,263/month is the median cost to buy.
The monthly rent is $1,269 on average.
Birmingham is another market where purchasing makes more sense. The monthly payment after purchasing a property in the Alabama region is still less than the typical rent, despite the little difference.
Pittsburgh, Pennsylvania
Monthly median cost of purchase: $1,490
The monthly rent is $1,529 on average.
Given that the typical monthly cost of house ownership in Pittsburgh is $1,490, people may save a little money each month by choosing to own rather than rent.
Memphis, Tennessee
Monthly median cost of purchase: $1,258.
The monthly median rent is $1,328.
Memphis residents might save money each month if they purchase a home rather than rent one, according to the most current Realtor.com statistics. In actuality, house values have decreased by 15% from this time last year, according to Redfin statistics.
Pro tip: If you’re ready to move to a financially beneficial city, you could be able to keep more money in your bank account.
Austin, Texas
Monthly median cost of purchase: $3,946.
The monthly median rent is $1,670.
The costliest city to own rather than rent is located in the center of Texas, neither on the East Coast or in the Pacific Northwest.
Austin was named the second fastest-growing city in the United States in 2022, and the city’s median house prices undoubtedly reflect the city’s rising housing demand. Austin, on the other hand, had a significant decrease in rent, exactly 8% from the previous year.
Pro tip: If you merely keep an eye on the rates over time, you can avoid making the same dumb mistakes as many others who buy in this city. Costs are rising as a result of the city’s appeal among consumers.
San Francisco, California
$5,859 per month is the median purchase cost.
The monthly median rent is $2,906.
For the past many decades, purchasing a home in San Francisco has been out of reach for everyone, save the wealthiest (or those most prepared to live in poverty).
A single-family house alone may set you back about $750,000. Although San Francisco has some of the highest monthly rents on our list—approximately $3,000—buying a home is roughly twice as expensive as renting in the area.
Columbus, Ohio
Monthly median cost of purchase: $2,458.
The monthly median rent is $1,222.
In Columbus, rent has increased within the past year, but so have housing costs. If residents decide to rent rather than buy a property, they can save a substantial sum of money per month.
Sacramento, California
$3,779 per month is the median purchase cost.
The monthly median rent is $1,898.
Sacramento is another Californian city where owning a property is quite expensive. Due to the 9% increase in home prices over the past year, more people are thinking about renting.
However, this also means that the rental market is competitive, so if you spot a decent offer, you’ll probably need to move quickly.
Los Angeles, California
$5,672/month is the median cost to buy.
The average monthly rent is $2,892.
Los Angeles is undoubtedly one of the most densely inhabited cities in the country, home to about 13 million people. With the typical house price being at an all-time high of $1.16 million, housing costs are kept high for both purchasers and renters due to the huge population and strong demand for homes.
Residents who want to save a little cash could think about renting, where the average monthly rent payment is $2,892.
Bottom line: housing will nearly always require you to use extra money from side jobs or other sources, whether you own or rent; it will likely be your largest monthly cost for the foreseeable future.
But owning isn’t always the most costly choice, and renting isn’t always the cheapest. If you would rather rent than own, or vice versa, comparing the facts might help you choose where and how you genuinely want to establish a permanent home. The more affordable option mostly depends on where you reside.
