When we think about buying a home versus renting one, common logic dictates that buying will cost more than renting. On average, that is true — according to Redfin, across the U.S., the average home costs 25% more to buy than to rent. However, in four metropolitan areas, the reverse is true — most likely due to stagnating home prices.
According to a Redfin analysis of U.S. single-family homes, condos/co-ops and townhouses in the 50 most populous U.S. metros, estimating a 6.5% mortgage interest rate, a 5% down payment and homeowner’s insurance equal to 0.5% of the purchase price, here are the four cities where it’s cheaper to buy than rent.
Also see 10 cities where renting is at least $1,000 cheaper than buying.
