These 2 US Cities Top Most Stable Real Estate Markets — Should You Rent or Buy There?
Written by
Emily Fowler
Edited by
Angela Corry
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The U.S. housing market has been unpredictable over the last few years, so for people looking to relocate, deciding where is safe to rent or buy can be tricky. But while many cities may have seen plenty of ups and downs, San Francisco and Seattle have stood out for their relative stability.
A study from Deluxe Holiday Homes ranked them among the top 10 most stable real estate markets in the world, measuring price consistency over a three-year period for both renting and buying. San Francisco’s housing market cooled with only a modest overall shift, while Seattle saw a sharper drop in home prices.
GOBankingRates took a closer look at the numbers — does it make more sense to rent or buy in these markets today?
San Francisco
- Typical home value: $1,241,003
- Average rent: $3,200
- Average change in rent/purchase: 0.27%
According to the study, rents grew by 8.22% between 2021 and 2023, though the latest Zillow data shows a decrease of $90 in the average rental cost compared to March 2024. Rent here is still 57% higher than the national average, however, making long-term renting costly.
Property prices fell by 7.69% between 2021 and 2023, and Redfin data shows that home prices were also down 3.8% in January compared to last year. For buyers, the price drop could offer the chance to own a home at a slight discount. However, interest rates remain high, making mortgages expensive even with lower home prices.
Seattle
- Typical home value: $842,068
- Average rent: $2,026
- Average change in rent/purchase: -0.81%
Seattle’s market tells a similar story but with an even sharper drop in home values. While rents here increased (up 9.77% between 2021 and 2023), property prices saw the steepest drop among the cities included in the study, down 11.40%.
Renting in Seattle still requires a substantial budget, and though the average rent here is 1% lower than the national average, it’s increased by $26 since March 2024, according to Zillow.
In terms of buying property in Seattle, the latest Redfin data shows home prices are up 2.6% since last year. If values continue to rise, buying sooner rather than later could yield better deals.
What’s the Smarter Choice?
The answer isn’t straightforward, for either location. Renting provides flexibility and shields against property value fluctuations, but in cities where rents keep rising, it’s far from a cheap option. Buyers, on the other hand, need to have the money for upfront a deposit along with ongoing maintenance costs, but buying is often seen as a “safer” move.
San Francisco and Seattle continue to be among the nation’s priciest housing markets, with San Francisco ranking 7th on Kiplinger’s list of the 15 most expensive housing markets in the US, yet their relative stability makes them unique in today’s unpredictable real estate landscape.
More From GOBankingRates
