50 Cities Where It’s Cheaper To Buy a Home Than Rent
If you can get past the down payment, it's smarter to buy.
Cameron Huddleston
Life and Money Columnist
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Buying a home is often touted as a smarter financial move than renting. In the past, Americans seemed to bear this sentiment, as homeownership rates climbed year after year to reach a high of 69.2% in 2004, according to Census Bureau data. But the tide turned as the housing market started to collapse in 2007 and the U.S. economy fell into a recession. Over time, more and more people turned to renting. By 2016, the homeownership rate had fallen to 62.9%, and the percentage of renting households hit a 50-year high.
Things changed again, though, in 2017. The homeownership rate in the U.S. has been inching back up over the past two years and is now at 64.8%, according to the Census Bureau. So, if you’re renting, should you join the renewed trend toward homeownership?
To help Americans determine whether they should continue renting or take the plunge into homeownership, GOBankingRates analyzed the top 100 housing markets in the U.S. to see where you can save money in the long term by opting to buy rather than rent. The study estimated the typical monthly mortgage payment in each city by using the median list price, a 20% down payment and the current interest rate on a 30-year fixed-rate mortgage. The monthly mortgage payment was then compared to the median rent for a single-family residence, resulting in the expected savings from buying versus renting.
Note that GOBankingRates’ study doesn’t factor in the initial cost of a down payment on a home, which can take many years to save up for. The study only considers the monthly mortgage payment and rent. So, if you can get past the hurdle of a down payment, buying a home in these cities makes financial sense.
Last updated: Dec. 27, 2019
50. Pittsburgh
- Median list price for a single-family residence: $219,000
- Monthly rent: $1,398
- 20% down payment: $43,800
- Monthly mortgage payment after 20% down: $1,180
- Difference between rent and mortgage payment: $218
- Annual savings when you buy instead of rent: $2,610
49. New Orleans
- Median list price for a single-family residence: $318,000
- Monthly rent: $1,600
- 20% down payment: $63,600
- Monthly mortgage payment after 20% down: $1,380
- Difference between rent and mortgage payment: $220
- Annual savings when you buy instead of rent: $2,640
48. Tampa, Florida
- Median list price for a single-family residence: $315,000
- Monthly rent: $1,650
- 20% down payment: $63,000
- Monthly mortgage payment after 20% down: $1,425
- Difference between rent and mortgage payment: $225
- Annual savings when you buy instead of rent: $2,700
47. Arlington, Texas
- Median list price for a single-family residence: $260,000
- Monthly rent: $1,650
- 20% down payment: $52,000
- Monthly mortgage payment after 20% down: $1,423
- Difference between rent and mortgage payment: $227
- Annual savings when you buy instead of rent: $2,724
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46. Louisville, Kentucky
- Median list price for a single-family residence: $205,000
- Monthly rent: $1,150
- 20% down payment: $41,000
- Monthly mortgage payment after 20% down: $912
- Difference between rent and mortgage payment: $238
- Annual savings when you buy instead of rent: $2,856
45. St. Louis
- Median list price for a single-family residence: $159,900
- Monthly rent: $975
- 20% down payment: $31,980
- Monthly mortgage payment after 20% down: $729
- Difference between rent and mortgage payment: $246
- Annual savings when you buy instead of rent: $2,952
44. Baton Rouge, Louisiana
- Median list price for a single-family residence: $228,500
- Monthly rent: $1,200
- 20% down payment: $45,700
- Monthly mortgage payment after 20% down: $954
- Difference between rent and mortgage payment: $246
- Annual savings when you buy instead of rent: $2,952
43. Knoxville, Tennessee
- Median list price for a single-family residence: $242,995
- Monthly rent: $1,300
- 20% down payment: $48,599
- Monthly mortgage payment after 20% down: $1,030
- Difference between rent and mortgage payment: $270
- Annual savings when you buy instead of rent: $3,240
42. Tucson, Arizona
- Median list price for a single-family residence: $227,500
- Monthly rent: $1,300
- 20% down payment: $45,500
- Monthly mortgage payment after 20% down: $1,029
- Difference between rent and mortgage payment: $271
- Annual savings when you buy instead of rent: $3,252
41. Anaheim, California
- Median list price for a single-family residence: $619,000
- Monthly rent: $2,900
- 20% down payment: $123,800
- Monthly mortgage payment after 20% down: $2,624
- Difference between rent and mortgage payment: $276
- Annual savings when you buy instead of rent: $3,312
40. Greensboro, North Carolina
- Median list price for a single-family residence: $207,000
- Monthly rent: $1,225
- 20% down payment: $41,400
- Monthly mortgage payment after 20% down: $948
- Difference between rent and mortgage payment: $277
- Annual savings when you buy instead of rent: $3,324
39. Chandler, Arizona
- Median list price for a single-family residence: $349,900
- Monthly rent: $1,750
- 20% down payment: $69,980
- Monthly mortgage payment after 20% down: $1,472
- Difference between rent and mortgage payment: $278
- Annual savings when you buy instead of rent: $3,336
38. Nashville, Tennessee
- Median list price for a single-family residence: $326,000
- Monthly rent: $1,725
- 20% down payment: $65,200
- Monthly mortgage payment after 20% down: $1,445
- Difference between rent and mortgage payment: $280
- Annual savings when you buy instead of rent: $3,360
37. Colorado Springs, Colorado
- Median list price for a single-family residence: $335,000
- Monthly rent: $1,650
- 20% down payment: $67,000
- Monthly mortgage payment after 20% down: $1,367
- Difference between rent and mortgage payment: $283
- Annual savings when you buy instead of rent: $3,396
36. Anchorage, Alaska
- Median list price for a single-family residence: $317,500
- Monthly rent: $1,800
- 20% down payment: $63,500
- Monthly mortgage payment after 20% down: $1,515
- Difference between rent and mortgage payment: $285
- Annual savings when you buy instead of rent: $3,420
35. Albuquerque, New Mexico
- Median list price for a single-family residence: $230,995
- Monthly rent: $1,350
- 20% down payment: $46,199
- Monthly mortgage payment after 20% down: $1,045
- Difference between rent and mortgage payment: $305
- Annual savings when you buy instead of rent: $3,660
34. Indianapolis
- Median list price for a single-family residence: $174,900
- Monthly rent: $1,108
- 20% down payment: $34,980
- Monthly mortgage payment after 20% down: $795
- Difference between rent and mortgage payment: $313
- Annual savings when you buy instead of rent: $3,750
33. San Bernardino, California
- Median list price for a single-family residence: $305,000
- Monthly rent: $1,650
- 20% down payment: $61,000
- Monthly mortgage payment after 20% down: $1,331
- Difference between rent and mortgage payment: $319
- Annual savings when you buy instead of rent: $3,828
32. Las Vegas
- Median list price for a single-family residence: $299,999
- Monthly rent: $1,599
- 20% down payment: $60,000
- Monthly mortgage payment after 20% down: $1,279
- Difference between rent and mortgage payment: $320
- Annual savings when you buy instead of rent: $3,840
31. Miami
- Median list price for a single-family residence: $479,000
- Monthly rent: $2,500
- 20% down payment: $95,800
- Monthly mortgage payment after 20% down: $2,175
- Difference between rent and mortgage payment: $325
- Annual savings when you buy instead of rent: $3,900
30. Toledo, Ohio
- Median list price for a single-family residence: $88,250
- Monthly rent: $797
- 20% down payment: $17,650
- Monthly mortgage payment after 20% down: $470
- Difference between rent and mortgage payment: $327
- Annual savings when you buy instead of rent: $3,924
29. Los Angeles
- Median list price for a single-family residence: $850,000
- Monthly rent: $4,000
- 20% down payment: $170,000
- Monthly mortgage payment after 20% down: $3,661
- Difference between rent and mortgage payment: $339
- Annual savings when you buy instead of rent: $4,068
28. Philadelphia
- Median list price for a single-family residence: $235,000
- Monthly rent: $1,400
- 20% down payment: $47,000
- Monthly mortgage payment after 20% down: $1,055
- Difference between rent and mortgage payment: $345
- Annual savings when you buy instead of rent: $4,140
27. Columbus, Ohio
- Median list price for a single-family residence: $184,900
- Monthly rent: $1,343
- 20% down payment: $36,980
- Monthly mortgage payment after 20% down: $997
- Difference between rent and mortgage payment: $346
- Annual savings when you buy instead of rent: $4,146
26. Sacramento, California
- Median list price for a single-family residence: $343,900
- Monthly rent: $1,850
- 20% down payment: $68,780
- Monthly mortgage payment after 20% down: $1,504
- Difference between rent and mortgage payment: $346
- Annual savings when you buy instead of rent: $4,152
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25. Lawrenceville, Georgia
- Median list price for a single-family residence: $253,850
- Monthly rent: $1,550
- 20% down payment: $50,770
- Monthly mortgage payment after 20% down: $1,191
- Difference between rent and mortgage payment: $359
- Annual savings when you buy instead of rent: $4,308
24. Corpus Christi, Texas
- Median list price for a single-family residence: $216,500
- Monthly rent: $1,495
- 20% down payment: $43,300
- Monthly mortgage payment after 20% down: $1,134
- Difference between rent and mortgage payment: $361
- Annual savings when you buy instead of rent: $4,332
23. Memphis, Tennessee
- Median list price for a single-family residence: $115,000
- Monthly rent: $925
- 20% down payment: $23,000
- Monthly mortgage payment after 20% down: $563
- Difference between rent and mortgage payment: $362
- Annual savings when you buy instead of rent: $4,344
22. Phoenix
- Median list price for a single-family residence: $285,000
- Monthly rent: $1,575
- 20% down payment: $57,000
- Monthly mortgage payment after 20% down: $1,199
- Difference between rent and mortgage payment: $376
- Annual savings when you buy instead of rent: $4,512
21. Mesa, Arizona
- Median list price for a single-family residence: $285,000
- Monthly rent: $1,595
- 20% down payment: $57,000
- Monthly mortgage payment after 20% down: $1,199
- Difference between rent and mortgage payment: $396
- Annual savings when you buy instead of rent: $4,752
20. Columbia, South Carolina
- Median list price for a single-family residence: $185,000
- Monthly rent: $1,199
- 20% down payment: $37,000
- Monthly mortgage payment after 20% down: $801
- Difference between rent and mortgage payment: $398
- Annual savings when you buy instead of rent: $4,776
19. Cincinnati
- Median list price for a single-family residence: $214,900
- Monthly rent: $1,513
- 20% down payment: $42,980
- Monthly mortgage payment after 20% down: $1,114
- Difference between rent and mortgage payment: $399
- Annual savings when you buy instead of rent: $4,782
18. Minneapolis
- Median list price for a single-family residence: $299,000
- Monthly rent: $1,825
- 20% down payment: $59,800
- Monthly mortgage payment after 20% down: $1,425
- Difference between rent and mortgage payment: $400
- Annual savings when you buy instead of rent: $4,800
17. Cleveland
- Median list price for a single-family residence: $86,000
- Monthly rent: $895
- 20% down payment: $17,200
- Monthly mortgage payment after 20% down: $489
- Difference between rent and mortgage payment: $406
- Annual savings when you buy instead of rent: $4,872
16. Winston-Salem, North Carolina
- Median list price for a single-family residence: $192,990
- Monthly rent: $1,275
- 20% down payment: $38,598
- Monthly mortgage payment after 20% down: $866
- Difference between rent and mortgage payment: $409
- Annual savings when you buy instead of rent: $4,908
15. Norfolk, Virginia
- Median list price for a single-family residence: $220,000
- Monthly rent: $1,425
- 20% down payment: $44,000
- Monthly mortgage payment after 20% down: $1,008
- Difference between rent and mortgage payment: $417
- Annual savings when you buy instead of rent: $5,004
14. Orlando, Florida
- Median list price for a single-family residence: $290,000
- Monthly rent: $1,730
- 20% down payment: $58,000
- Monthly mortgage payment after 20% down: $1,309
- Difference between rent and mortgage payment: $421
- Annual savings when you buy instead of rent: $5,052
13. Jacksonville, Florida
- Median list price for a single-family residence: $215,000
- Monthly rent: $1,395
- 20% down payment: $43,000
- Monthly mortgage payment after 20% down: $964
- Difference between rent and mortgage payment: $431
- Annual savings when you buy instead of rent: $5,172
12. Denver
- Median list price for a single-family residence: $470,000
- Monthly rent: $2,400
- 20% down payment: $94,000
- Monthly mortgage payment after 20% down: $1,965
- Difference between rent and mortgage payment: $435
- Annual savings when you buy instead of rent: $5,220
11. St. Paul, Minnesota
- Median list price for a single-family residence: $229,000
- Monthly rent: $1,525
- 20% down payment: $45,800
- Monthly mortgage payment after 20% down: $1,089
- Difference between rent and mortgage payment: $436
- Annual savings when you buy instead of rent: $5,232
10. Chula Vista, California
- Median list price for a single-family residence: $534,900
- Monthly rent: $2,750
- 20% down payment: $106,980
- Monthly mortgage payment after 20% down: $2,304
- Difference between rent and mortgage payment: $446
- Annual savings when you buy instead of rent: $5,352
9. Buffalo, New York
- Median list price for a single-family residence: $109,900
- Monthly rent: $1,100
- 20% down payment: $21,980
- Monthly mortgage payment after 20% down: $645
- Difference between rent and mortgage payment: $455
- Annual savings when you buy instead of rent: $5,460
8. Santa Ana, California
- Median list price for a single-family residence: $549,900
- Monthly rent: $2,800
- 20% down payment: $109,980
- Monthly mortgage payment after 20% down: $2,331
- Difference between rent and mortgage payment: $469
- Annual savings when you buy instead of rent: $5,628
7. Madison, Wisconsin
- Median list price for a single-family residence: $300,000
- Monthly rent: $2,100
- 20% down payment: $60,000
- Monthly mortgage payment after 20% down: $1,602
- Difference between rent and mortgage payment: $498
- Annual savings when you buy instead of rent: $5,976
6. Baltimore
- Median list price for a single-family residence: $159,970
- Monthly rent: $1,325
- 20% down payment: $31,994
- Monthly mortgage payment after 20% down: $814
- Difference between rent and mortgage payment: $511
- Annual savings when you buy instead of rent: $6,132
5. Silver Spring, Maryland
- Median list price for a single-family residence: $419,000
- Monthly rent: $2,400
- 20% down payment: $83,800
- Monthly mortgage payment after 20% down: $1,864
- Difference between rent and mortgage payment: $536
- Annual savings when you buy instead of rent: $6,432
4. Aurora, Colorado
- Median list price for a single-family residence: $355,000
- Monthly rent: $2,095
- 20% down payment: $71,000
- Monthly mortgage payment after 20% down: $1,484
- Difference between rent and mortgage payment: $611
- Annual savings when you buy instead of rent: $7,332
3. Hialeah, Florida
- Median list price for a single-family residence: $324,740
- Monthly rent: $2,145
- 20% down payment: $64,948
- Monthly mortgage payment after 20% down: $1,474
- Difference between rent and mortgage payment: $671
- Annual savings when you buy instead of rent: $8,052
2. Washington
- Median list price for a single-family residence: $600,000
- Monthly rent: $3,199
- 20% down payment: $120,000
- Monthly mortgage payment after 20% down: $2,479
- Difference between rent and mortgage payment: $720
- Annual savings when you buy instead of rent: $8,640
1. Naples, Florida
- Median list price for a single-family residence: $399,000
- Monthly rent: $4,500
- 20% down payment: $79,800
- Monthly mortgage payment after 20% down: $1,702
- Difference between rent and mortgage payment: $2,798
- Annual savings when you buy instead of rent: $33,576
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Methodology: GOBankingRates analyzed the 100 cities with the biggest housing markets in the U.S. to determine the cities where you can save on housing in the long term by opting to buy rather than rent. GOBankingRates first compiled the median listing price for homes in each city, sourced from Zillow. Using the median listing price, a median monthly mortgage payment estimate was calculated via SmartAsset’s mortgage calculator, using a 20% down payment, Federal Reserve Economic Data’s current 30-year fixed mortgage rate and local annual property tax rates (also from SmartAsset). This was then compared to the median monthly rental price for single-family residences in each city, sourced from Zillow, to find the difference between a median mortgage payment and the median rent in each city. Cities were then ranked according to how much the median rent exceeded the median mortgage payment, with No. 1 being the city where the most money can be saved by buying over renting. All data used to conduct this study was compiled and verified on Dec. 5, 2019.
About the Author
Cameron Huddleston
Cameron Huddleston is an award-winning journalist with more than 18 years of experience writing about personal finance. Her work has appeared in Kiplinger’s Personal Finance, Business Insider, Chicago Tribune, Fortune, MSN, USA Today and many more print and online publications. She also is the author of Mom and Dad, We Need to Talk: How to Have Essential Conversations With Your Parents About Their Finances.
U.S. News & World Report named her one of the top personal finance experts to follow on Twitter, and AOL Daily Finance named her one of the top 20 personal finance influencers to follow on Twitter. She has appeared on CNBC, CNN, MSNBC and “Fox & Friends” and has been a guest on ABC News Radio, Wall Street Journal Radio, NPR, WTOP in Washington, D.C., KGO in San Francisco and other personal finance radio shows nationwide. She also has been interviewed and quoted as an expert in The New York Times, Chicago Tribune, Forbes, MarketWatch and more.
She has an MA in economic journalism from American University and BA in journalism and Russian studies from Washington & Lee University.
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