{"id":580245,"date":"2023-06-26T13:00:00","date_gmt":"2023-06-26T10:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/"},"modified":"2023-06-26T13:00:00","modified_gmt":"2023-06-26T10:00:00","slug":"nine-cities-where-buying-a-home-is-still-cheaper-than-renting","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/","title":{"rendered":"#Nine cities where buying a home is still cheaper than renting"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a348b8a21a2b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a348b8a21a2b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/#Memphis_Tenn\" >Memphis, Tenn.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/#Philadelphia\" >Philadelphia\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/#Pittsburgh\" >Pittsburgh\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/#Cleveland\" >Cleveland\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/#Birmingham_Ala\" >Birmingham, Ala.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/#Houston\" >Houston\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/#St_Louis\" >St. Louis\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/#Baltimore\" >Baltimore\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/buradabiliyorum.com\/en\/nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/#Detroit\" >Detroit\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/homeapartment-split-stock_renting-vs-owning.jpg?w=900\" \/><\/p>\n<div>\n<p>Owning a home beats renting one in several important ways, common wisdom dictates, starting with the fact that homeowners pay down their own mortgage, rather than someone else\u2019s.\u00a0<\/p>\n<p>But home ownership feels out of reach to many Americans in 2023, thanks to a historic alignment of high mortgage rates and high sales prices.\u00a0\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>Surprisingly, real estate analysts can still point to a few large cities where owning a home remains cheaper than renting.\u00a0\u00a0<\/p>\n<p>We\u2019re not talking about San Francisco or New York, where home ownership comes at a hefty premium. These are cities with home prices low enough, even now, that the average monthly mortgage payment is lower than the typical monthly rent in the same city.\u00a0<\/p>\n<p>In a recent report that analyzed the 50 largest metropolitan areas, Redfin identified <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.redfin.com\/news\/rent-vs-own-2023\/\">only four where<\/a> it\u2019s still cheaper to buy than rent.\u00a0\u00a0<\/p>\n<p>Economists at Realtor.com did their own analysis and came up <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.realtor.com\/news\/trends\/rent-vs-buy-cities-where-monthly-costs-for-each-are-less\/\">with five places<\/a> where owning is cheaper than renting.\u00a0<\/p>\n<p>\u201cThe housing market is challenging,\u201d said Danielle Hale, chief economist at Realtor.com.\u00a0<\/p>\n<p>One big reason is mortgage rates. The average rate for a 30-year fixed mortgage now stands at 6.7 percent, after years of historically low rates, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\">according to federal data<\/a>; rates had hovered below 5 percent for most of the last decade.\u00a0\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>Though home prices have fallen some in response to rising rates, but they remain high. The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fred.stlouisfed.org\/series\/MSPUS\">median sales price<\/a> soared from $322,600 in early 2020 to $479,500 in late 2022 before ticking down to $436,800 this year.\u00a0<\/p>\n<p>Another reason the housing market remains tight is \u201cthat we haven\u2019t been building enough homes,\u201d Hale said. \u201cWe just haven\u2019t kept pace with the number of households that have formed.\u201d\u00a0\u00a0<\/p>\n<p>The national housing shortage \u201cmakes it challenging whether you want to rent or buy,\u201d she said.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>There aren\u2019t many bargains in the rental market. The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>n asking rent passed $2,000 for the first time in 2022. The figure now stands at $1,995, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.redfin.com\/news\/redfin-rental-report-may-2023\/\">according to Redfin<\/a>.\u00a0\u00a0<\/p>\n<p>Hale expects rents to inch down later this year. \u201cI don\u2019t want to oversell the relief for renters,\u201d she said, \u201cbut it\u2019s a step in the right direction.\u201d\u00a0<\/p>\n<p>Daryl Fairweather, chief economist at Redfin, sees some relief ahead for homebuyers, too, but maybe not until next year.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>\u201cI think mortgage rates will come back down,\u201d she said. \u201cI think inflation is what\u2019s driving the ship right now, and inflation seems to be abating.\u201d\u00a0<\/p>\n<p>Fairweather predicts interest rates will retreat to around 5 percent by the end of 2024, \u201cand that should be enough to juice the housing market.\u201d\u00a0<\/p>\n<p>The dizzying math of high interest rates and high purchase prices makes owning much costlier than renting in most large U.S. cities. One extreme example is Austin, Texas, where even a starter home will cost the buyer about $3,700 per month, according to Realtor.com. Monthly rents there average about $1,650.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>Cities with affordable starter homes in 2023 tend to be \u201csmaller metro areas,\u201d Hale said. \u201cThey tend to have higher ownership rates and a smaller rental stock.\u201d\u00a0<\/p>\n<p>They are mostly inland cities, with real estate markets that did not experience \u201cthe huge run-up in prices that you tend to see in a lot of coastal markets that can put homebuying out of reach,\u201d she said.\u00a0\u00a0<\/p>\n<p>Here are nine cities where owning remains cheaper than renting, tagged by analysts at Realtor.com or Redfin. Oddly enough, no city <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears on both lists. The reason seems to lie in different methodologies, which are probably a bit too esoteric to detail here.\u00a0\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<h2><span class=\"ez-toc-section\" id=\"Memphis_Tenn\"><\/span>Memphis, Tenn.\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Homebuyers in Memphis can save hundreds of dollars per month over renters, even with sale prices surging, according to Realtor.com. The median monthly cost for first-time homebuyers in Memphis is only $847, compared to a median monthly rent of $1,258.\u00a0<\/p>\n<p>New apartments in Memphis \u201crent for a lot of money,\u201d said Joe Spake, a broker at InCity Realty in Memphis, speaking in the Realtor.com report. A $1,600 monthly rent for a two-bedroom apartment \u201cisn\u2019t out of the ordinary.\u201d\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Philadelphia\"><\/span>Philadelphia\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Owning a home in Philadelphia costs 7 percent less, on average, than renting one, according to Redfin. Monthly rents average about $2,000 in Philly, while monthly mortgage costs average $1,869.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr7_ab\"><\/aside>\n<h2><span class=\"ez-toc-section\" id=\"Pittsburgh\"><\/span>Pittsburgh\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Home seekers will save $350 per month by purchasing a starter home in Pittsburgh rather than renting one, according to Realtor.com. The median monthly rent is $1,445, while a mortgage costs $1,097.\u00a0<\/p>\n<p>\u201cThis anchor city of the Rust Belt saw significant out-migration after the steel industry receded in the late 20th century, leading to overall real estate stagnation,\u201d Realtor.com reports. \u201cBut unlike some other urban metro cores, it\u2019s seen a revitalization\u2014and gentrification\u2014of its downtown.\u201d\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cleveland\"><\/span>Cleveland\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Owning a home in Cleveland is 4 percent cheaper than renting one, according to Redfin. The median mortgage cost is $1,730, while the median rent is $1,800.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Birmingham_Ala\"><\/span>Birmingham, Ala.\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Alabama\u2019s capital city remains affordable for homebuyers, even in a tough market, according to Realtor.com. Monthly costs for a starter home fall just under $900; rental costs average about $1,150 per month.\u00a0\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Houston\"><\/span>Houston\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Home ownership is cheaper than renting in America\u2019s fourth-largest city, according to Redfin, by a margin of 1 percent. Median rents and mortgage costs both fall in the $2,300-$2,400 range.\u00a0\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"St_Louis\"><\/span>St. Louis\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A starter home costs 34 percent more in St. Louis now than just one year ago, according to Realtor.com. Nonetheless, \u201cmortgage payments are still a hair cheaper than renting.\u201d Monthly rents average $1,211 in St. Louis, compared to $1,128 in monthly costs for buyers.\u00a0\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Baltimore\"><\/span>Baltimore\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Baltimore, too, is cheaper for buyers than renters by only a hair. \u201cIt pencils out to a monthly median savings of about $65,\u201d Realtor.com reports.\u00a0\u00a0<\/p>\n<p>With interest rates rising, \u201cI\u2019ve had a lot of potential buyers leave the market,\u201d said Jason Lerner, vice president at George Mason Mortgage in Baltimore, speaking in the report. Yet, as demand slackens, sellers are more willing to negotiate on price.\u00a0\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Detroit\"><\/span>Detroit\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Motor City offers the nation\u2019s best relative value for people seeking to own rather than rent, according to Redfin. Buying in Detroit is 24 percent cheaper than renting: Monthly mortgage costs average around $1,300, while monthly rents run about $1,700.\u00a0\u00a0<\/p>\n<p>For anyone deciding whether to rent or buy, a lot depends on how long the house-hunter plans to remain in the dwelling. Yes, homeownership builds home equity, but a buyer who sells after a year or two won\u2019t build much of it.\u00a0\u00a0<\/p>\n<p>A homebuyer should plan to stay put for at least five years, as a rule of thumb, Fairweather said. \u201cI would say five years is long enough to make sure, if you do have to sell, your equity is going to cover your real estate fees.\u201d\u00a0<\/p>\n<p>Hale agrees, and she urges prospective buyers to check out Realtor.com\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.realtor.com\/mortgage\/tools\/rent-or-buy-calculator\/\">rent-or-buy calculator<\/a>.\u00a0<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/business\/housing\/4065173-nine-cities-where-buying-a-home-is-still-cheaper-than-renting\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Owning a home beats renting one in several important ways, common wisdom dictates, starting with the fact that homeowners pay down their own mortgage, rather than someone else\u2019s.\u00a0 But home ownership feels out of reach to many Americans in 2023, thanks to a historic alignment of high mortgage rates and high sales prices.\u00a0\u00a0 Surprisingly, real&#8230;<\/p>\n","protected":false},"author":1,"featured_media":580246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/homeapartment-split-stock_renting-vs-owning.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134344,134747,134343,134661,12156,67208,70289,134345],"class_list":["post-580245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-administration","tag-arts-culture","tag-campaign","tag-energy-environment","tag-housing","tag-poverty","tag-senate","tag-state-watch"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/580245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=580245"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/580245\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/580246"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=580245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=580245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=580245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}