Cities Where Buying a Home Beats Renting - Home & Texture
Homeownership Homeownership in Cities

Four Cities Where Buying a Home Is Cheaper Than Renting

By
May 26, 2023 at 9:48 PM PST
Homeownership Homeownership in Cities

Four Cities Where Buying a Home Is Cheaper Than Renting

By
May 26, 2023 at 9:48 PM PST

Have you dreamt about buying a home in the city? A recent report by Redfin addressed that there are only a handful of cities in America where the cost of renting is more than what it would cost to own a home.

Taylor Marr, who serves as a chief economist and researcher at Redfin, collaborated with a data journalist to crunch the numbers. In their findings, they concluded that across the nation, most homes cost “an estimated 25% more per month to own than rent.”

Here Are the Four Cities Where Buying a Home Is Cheaper Than Renting

Photo credit: Alex Brisbey

Black Millennials who are looking to buy a home in a city may want to consider one of these cities. Each of the affordable cities is embedded with Black culture, which is a positive for those in a market looking for a family-oriented forever home.

“Buying a home often makes more financial sense than renting if you can afford a down payment and monthly mortgage because you’re building equity. When you own your home, your home pays you; when you rent, you and your home pay your landlord,” said Marr. “But buying isn’t a feasible option for everyone. Some people move around a lot, so renting might make more sense because they won’t be in their homes long enough to build equity. Many others simply don’t have the money for a down payment—a situation that has become increasingly common due to rising mortgage rates and elevated home prices.”

But before you begin to start visiting cities to explore, take a good look at your finances. Explore your current job position, and if it’s remote, you may lucky enough to snag a home for a bargain.

“I wouldn’t encourage people to squeeze their budgets to buy a home when prices are falling and we’re teetering on a recession,” Marr said. “In the years leading up to the pandemic, it made sense for some homebuyers to break the rule that says not to spend more than 30% of your income on monthly housing costs, but these times are riskier, so it makes sense to be a little more conservative.”

Here are the cities in America where owning a home costs less than renting:

Philadelphia

The city of brotherly love isn’t cheap, but it isn’t expensive either. In Philadelphia, a home on average will run you about $250,000. With its proximity to New York City and the greater metropolitan area, that is a steal.

Detroit

 

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It feels like Detroit, Michigan, is going through a renaissance at the moment. Detroit is a Midwestern city that has made a cultural and historical impact on the Black American experience. Currently, the average home price is roughly $70,000. This could be attractive to aspiring home flippers and to those who want an urban-suburban appeal.

Cleveland

 

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If you are looking for lots of room and affordable homes while still staying in proximity to city life, you might want to consider looking for a home in Cleveland, Ohio. On average, a home in Cleveland costs approximately $101,000. You’ll get snowy windows and a strong working-class community that could also double as your neighbors.

Houston

The average home in Houston, Texas, is roughly $340,000. As an increasingly diverse city, Houston is booming with cultural attractions, job opportunities, and warmer weather. You can get the best of both worlds by living in a bustling city like Houston while enjoying the pleasures of living in Southern comfort.



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