Where Becoming a Homeowner Pays Off the Quickest

Purchasing a home almost always offers homeowners a financial benefit—at least in the long term. However, some metros provide a quicker financial pay off. According to a recent report from real estate marketing platform Zillow, the typical U.S. home value for single-family homes is about $368,720 and the typical rent is about $1,951 per month. With those values and considering a 20% down payment, the buy-versus-rent breakeven comes in at about 6 years.

In some metros, buying pays off even quicker than the nationwide average timeframe

Among the 50 largest metros, buying a home pays of the quickest in Columbus, Ohio, Memphis, Tenn., and Buffalo, N.Y. In these metros, the buy-versus-rent breakeven arrives within 3.5 to 4.2 years.

The pay off takes much longer in other metros

On the other hand, renting may be the smartest option for most people. For instance, in San Francisco, San Jose, Calif., and New Orleans, it takes more than 30 years for the buy-versus-rent breakeven.

Similarly, in San Diego, Seattle, Austin, Texas, Los Angeles, and Portland, it takes between 17 and 25 years for buying to pay off.