Personal Finance
5 Cities Where Buying a House Is Still Cheaper Than Renting
While renting a house is cheaper than buying one in most of the United States right now, there are a few exceptions.
Of the 50 largest cities in the country, a new report from Realtor.com identifies five where it’s actually cheaper to buy. Here’s the list, along with how much less a typical buyer paid in housing costs for the month of December compared to a typical renter:
-
Memphis, Tennessee: -$411
-
Pittsburgh, Pennsylvania: -$348
-
Birmingham, Alabama: -$270
-
St. Louis, Missouri: -$83
-
Baltimore, Maryland: -65
In these five cities, people buying starter homes paid an average of $235 less than renters on a monthly basis.
Keep in mind
These cities are the exception, not the rule. In the other 45 cities Realtor.com analyzed, renting was more affordable than buying. Across the board, the typical renter paid $792 less in housing costs in December than a starter homeowner.
Realtor.com also noted that the financial advantage of buying a house in each of five cities above has shrunk over the past year amid rising home prices and rising mortgage rates. A year ago, 20 cities out of 50 were more favorable to buyers.
What’s next for the housing market
Realtor.com forecasts that rents will continue to rise this year, though at a slower rate than the 11% growth in rent prices in 2022. At the same, experts say the market could heat up for buyers in the coming months as mortgage rates continue to fall.
More from Money:
Are Bidding Wars Back in Your Town? Housing Market Shows Signs of Recovery
The Median Home Sale Closed at a Record-High $386,000 Last Year
Best Mortgage Lenders of January 2023
© Copyright 2023 Money Group, LLC. All Rights Reserved.
This article originally appeared on Money.com and may contain affiliate links for which Money receives compensation. Opinions expressed in this article are the author’s alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. For more information, read Money’s full disclaimer.
Read the full article here
-
Make Money7 days ago
The 15 Fastest-Growing Jobs in America for the Coming Decade
-
Passive Income6 days ago
This Minimalist Lamp Lets You Pick From 16 Million+ Lighting Colors for Maximum Productivity
-
Side Hustles6 days ago
Protect Your Business With AdGuard VPN’s Powerful Security Features
-
Side Hustles7 days ago
Meta Tests Custom AI Images on Facebook, Instagram Feeds
-
Make Money5 days ago
15 Jobs That Will Shrink the Fastest Over the Next Decade
-
Passive Income7 days ago
Tired of Getting Work Calls After Hours? Try This.
-
Side Hustles7 days ago
Proto Hologram Boxes Project 3D Images, Like ‘The Jetsons’
-
Side Hustles4 days ago
3 Steps You Can’t Miss When Growing Your Business