Knowing when to buy or rent can be a daunting task. There are many important factors to consider as buying a home is often the largest investment someone will make in their lifetime. The first big step is saving the money for a down payment. After that there is time meeting with lenders as well as shopping around to see the best fit for you needs. Another thing to consider is that it actually make more sense to rent in some cities than to own. This may seem like a step back for some people, but in many cases renting makes more sense financially then buying.
A lot of those choices depend on the city you in live in. Location is ultimately the largest factor when it comes to buying or renting a home. To help consumers have a better idea on whether or not buying or renting makes the most sense for them, the home mortgage experts at Liberty Bank of Chicago compiled new data that shows the top 50 U.S. cities and urban area for both renting and buying. They compiled this list using these main factors:
- Mortgage interest rates
- Average rent prices
- Median house prices
- Buy to rent ratio.
Using that information they broke down the top 50 cities for both renting and buying. Blow are the list for both.
The best cities in the United States for buying
- Indianapolis, IN
- Louisville, KY
- Detroit, MI
- Oklahoma City, OK
- Cleveland, OH
- Memphis, TN
- Albuquerque, NM
- Omaha, NE
- Milwaukee, WI
- El Paso, TX
- Fresno, CA
- Tucson, AZ
- Wichita, KS
- Jacksonville, FL
- Fort Worth, TX
- Arlington, TX
- Tulsa, OK
- San Francisco, CA
- San Antonio, TX
- Chicago, IL
- Los Angeles, CA
- Houston, TX
- Baltimore, MD
- New York City, NY
- Dallas, TX
- Sacramento, CA
- Nashville, TN
- Columbus, OH
- Las Vegas, NV
- Phoenix, AZ
- Philadelphia, PA
- Colorado Springs, CO
- Denver, CO
- Mesa, AZ
- Washington D.C
- Portland, OR
- Seattle, WA
- Austin, TX
- San Jose, CA
- Charlotte, NC
- Oakland, CA
- Long Beach, CA
- Boston, MA
- Minneapolis, MN
- Virginia Beach, VA
- New Orleans, LA
- Kansas City, KS
- Raleigh, NC
- Atlanta, GA
- Miami, FL
The best cities in the United States for renting
- Mesa, AZ
- Wichita, KS
- Tucson, AZ
- El Paso, TX
- Las Vegas, NV
- Phoenix, AZ
- Kansas City, KS
- Charlotte, NC
- Albuquerque, NM
- Baltimore, MD
- Jacksonville, FL
- Arlington, TX
- Raleigh, NC
- Fresno, CA
- Minneapolis, MN
- Virginia Beach, VA
- Miami, FL
- San Jose, CA
- Columbus, OH
- Oklahoma City, OK
- Memphis, TN
- Omaha, NE
- New Orleans, LA
- San Antonio, TX
- Milwaukee, WI
- Colorado Springs, CO
- Fort Worth, TX
- Sacramento, CA
- Philadelphia, PA
- Austin, TX
- Denver, CO
- Long Beach, CA
- Portland, OR
- Boston, MA
- Atlanta, GA
- Detroit, MI
- Dallas, TX
- Louisville, KY
- Seattle, WA
- Washington D.C.
- Houston, TX
- Tulsa, OK
- Nashville, TN
- Los Angeles, CA
- Chicago, IL
- Oakland, CA
- Cleveland, OH
- Indianapolis, IN
- San Francisco, CA
- New York City, NY
There are some interesting takeaways from the data they found. The one that really jumps is the affordability of homes in the Midwest. Seven out of the top 10 cities for buying are located in the Midwest. Another noteworthy thing that came out of the data is that the southwest dominates for renting, Arizona especially with 3 cities in the top 10 for renting. To see the full list check out this long infographic from liberty bank.
Where It Makes Sense To Rent vs Buy In The United States
