50 cities where it's better to buy than to rent
50 cities where it's better to buy than to rent
It's an oft-heard joke that millennials would rather spend money on avocado toast than buy a home, but the reality is much more complicated.
In decades past, owning a home was a cornerstone of personal achievement, but increasingly, this dream is falling out of favor. As of 2022, 77.8% of the Silent Generation and 76.8% of baby boomers owned homes, in contrast to just 51.5% of millennials. In the same year, almost 25% of millennials stated they would "always rent" and never purchase a house.
There are a variety of reasons. Millennials came into adulthood right around the time the real estate market collapsed in the late 2000s. They are also facing record-breaking student loan debt, inflated mortgage rates, and the fallout from the COVID-19 pandemic, which raised housing prices as more people shifted to work-from-home setups.
While buying a home may once have been a given, members of all generations are now seriously weighing when it is best to rent. Stacker analyzed home and rent prices from Zillow to see where it makes more sense to buy than rent. This analysis measured the 500 largest cities by population.
The price-to-rent ratio was calculated by dividing the 2023 median home price in that city by the annualized rent. The price-to-rent ratio is an industry metric used to measure whether it is cheaper to buy or rent, or whether the housing market is overvalued in that location. It does not take into account affordability.
In the 500 largest cities in the U.S., the average price-to-rent ratio was 18.58. Most of the cities on the list are in the Midwest and South, where home prices are lower than on the coasts.
Buying a home is a big financial decision with many one-time upfront closing costs, including down payments and fees. This analysis does not consider those costs, nor the monthly mortgage payment, which can vary depending on the type of loan secured, interest rates, or credit scores.
Read on to find out where it's worth it to splurge on a down payment and where you'd be better off keeping your savings intact.
#50. Plainfield, Illinois
- Price-to-rent ratio: 12.34
- Median sale price: $351,632
- Median annual rent: $28,492 ($2,374 per month)
#49. Vero Beach, Florida
- Price-to-rent ratio: 12.32
- Median sale price: $368,463
- Median annual rent: $29,903 ($2,492 per month)
#48. Rochester, New York
- Price-to-rent ratio: 12.30
- Median sale price: $206,245
- Median annual rent: $16,764 ($1,397 per month)
#47. McAllen, Texas
- Price-to-rent ratio: 12.25
- Median sale price: $212,890
- Median annual rent: $17,384 ($1,449 per month)
#46. Fayetteville, North Carolina
- Price-to-rent ratio: 12.12
- Median sale price: $195,603
- Median annual rent: $16,137 ($1,345 per month)
#45. Warren, Michigan
- Price-to-rent ratio: 12.11
- Median sale price: $187,180
- Median annual rent: $15,462 ($1,288 per month)
#44. San Angelo, Texas
- Price-to-rent ratio: 12.0
- Median sale price: $194,459
- Median annual rent: $16,206 ($1,350 per month)
#43. Trenton, New Jersey
- Price-to-rent ratio: 11.85
- Median sale price: $274,061
- Median annual rent: $23,129 ($1,927 per month)
#42. Aurora, Illinois
- Price-to-rent ratio: 11.81
- Median sale price: $269,858
- Median annual rent: $22,853 ($1,904 per month)
#41. Elgin, Illinois
- Price-to-rent ratio: 11.75
- Median sale price: $282,257
- Median annual rent: $24,031 ($2,003 per month)
#40. Kansas City, Kansas
- Price-to-rent ratio: 11.67
- Median sale price: $179,430
- Median annual rent: $15,377 ($1,281 per month)
#39. Lansing, Michigan
- Price-to-rent ratio: 11.66
- Median sale price: $142,079
- Median annual rent: $12,189 ($1,016 per month)
#38. Sunrise, Florida
- Price-to-rent ratio: 11.63
- Median sale price: $358,388
- Median annual rent: $30,815 ($2,568 per month)
#37. Tuscaloosa, Alabama
- Price-to-rent ratio: 11.61
- Median sale price: $208,246
- Median annual rent: $17,939 ($1,495 per month)
#36. Augusta, Georgia
- Price-to-rent ratio: 11.51
- Median sale price: $177,428
- Median annual rent: $15,418 ($1,285 per month)
#35. El Paso, Texas
- Price-to-rent ratio: 11.46
- Median sale price: $207,594
- Median annual rent: $18,109 ($1,509 per month)
#34. Chicago, Illinois
- Price-to-rent ratio: 11.44
- Median sale price: $284,648
- Median annual rent: $24,886 ($2,074 per month)
#33. Wichita Falls, Texas
- Price-to-rent ratio: 11.37
- Median sale price: $160,241
- Median annual rent: $14,099 ($1,175 per month)
#32. High Point, North Carolina
- Price-to-rent ratio: 11.23
- Median sale price: $224,055
- Median annual rent: $19,951 ($1,663 per month)
#31. Columbus, Georgia
- Price-to-rent ratio: 11.07
- Median sale price: $151,975
- Median annual rent: $13,729 ($1,144 per month)
#30. Amarillo, Texas
- Price-to-rent ratio: 10.95
- Median sale price: $196,598
- Median annual rent: $17,961 ($1,497 per month)
#29. New Haven, Connecticut
- Price-to-rent ratio: 10.87
- Median sale price: $278,151
- Median annual rent: $25,599 ($2,133 per month)
#28. Springfield, Illinois
- Price-to-rent ratio: 10.74
- Median sale price: $143,236
- Median annual rent: $13,341 ($1,112 per month)
#27. South Bend, Indiana
- Price-to-rent ratio: 10.68
- Median sale price: $167,834
- Median annual rent: $15,713 ($1,309 per month)
#26. Dearborn, Michigan
- Price-to-rent ratio: 10.67
- Median sale price: $217,416
- Median annual rent: $20,382 ($1,699 per month)
#25. Lehigh Acres, Florida
- Price-to-rent ratio: 10.67
- Median sale price: $264,914
- Median annual rent: $24,837 ($2,070 per month)
#24. Saginaw, Michigan
- Price-to-rent ratio: 10.66
- Median sale price: $113,316
- Median annual rent: $10,626 ($885 per month)
#23. Macon, Georgia
- Price-to-rent ratio: 10.58
- Median sale price: $152,303
- Median annual rent: $14,395 ($1,200 per month)
#22. Saint Louis, Missouri
- Price-to-rent ratio: 10.36
- Median sale price: $163,341
- Median annual rent: $15,761 ($1,313 per month)
#21. Philadelphia, Pennsylvania
- Price-to-rent ratio: 10.35
- Median sale price: $222,947
- Median annual rent: $21,535 ($1,795 per month)
#20. Syracuse, New York
- Price-to-rent ratio: 10.18
- Median sale price: $166,788
- Median annual rent: $16,378 ($1,365 per month)
#19. Delray Beach, Florida
- Price-to-rent ratio: 10.18
- Median sale price: $343,930
- Median annual rent: $33,788 ($2,816 per month)
#18. Akron, Ohio
- Price-to-rent ratio: 10.03
- Median sale price: $116,181
- Median annual rent: $11,587 ($966 per month)
#17. Brownsville, Texas
- Price-to-rent ratio: 9.94
- Median sale price: $160,700
- Median annual rent: $16,167 ($1,347 per month)
#16. Lawton, Oklahoma
- Price-to-rent ratio: 9.87
- Median sale price: $121,269
- Median annual rent: $12,284 ($1,024 per month)
#15. Beaumont, Texas
- Price-to-rent ratio: 9.47
- Median sale price: $142,484
- Median annual rent: $15,043 ($1,254 per month)
#14. Memphis, Tennessee
- Price-to-rent ratio: 9.43
- Median sale price: $150,509
- Median annual rent: $15,959 ($1,330 per month)
#13. Montgomery, Alabama
- Price-to-rent ratio: 9.34
- Median sale price: $135,527
- Median annual rent: $14,511 ($1,209 per month)
#12. Scranton, Pennsylvania
- Price-to-rent ratio: 9.33
- Median sale price: $143,237
- Median annual rent: $15,357 ($1,280 per month)
#11. Hartford, Connecticut
- Price-to-rent ratio: 9.21
- Median sale price: $160,649
- Median annual rent: $17,452 ($1,454 per month)
#10. Baltimore, Maryland
- Price-to-rent ratio: 8.95
- Median sale price: $178,338
- Median annual rent: $19,933 ($1,661 per month)
#9. Shreveport, Louisiana
- Price-to-rent ratio: 8.67
- Median sale price: $124,429
- Median annual rent: $14,354 ($1,196 per month)
#8. Toledo, Ohio
- Price-to-rent ratio: 8.65
- Median sale price: $111,810
- Median annual rent: $12,922 ($1,077 per month)
#7. Peoria, Illinois
- Price-to-rent ratio: 8.21
- Median sale price: $118,204
- Median annual rent: $14,404 ($1,200 per month)
#6. Dayton, Ohio
- Price-to-rent ratio: 7.94
- Median sale price: $111,867
- Median annual rent: $14,097 ($1,175 per month)
#5. Birmingham, Alabama
- Price-to-rent ratio: 6.68
- Median sale price: $105,727
- Median annual rent: $15,838 ($1,320 per month)
#4. Cleveland, Ohio
- Price-to-rent ratio: 6.28
- Median sale price: $103,380
- Median annual rent: $16,453 ($1,371 per month)
#3. Flint, Michigan
- Price-to-rent ratio: 5.19
- Median sale price: $48,244
- Median annual rent: $9,303 ($775 per month)
#2. Jackson, Mississippi
- Price-to-rent ratio: 5.06
- Median sale price: $68,496
- Median annual rent: $13,545 ($1,129 per month)
#1. Detroit, Michigan
- Price-to-rent ratio: 4.19
- Median sale price: $63,566
- Median annual rent: $15,168 ($1,264 per month)
Photo selection by Lacy Kerrick.
