Currently Reading

Does it Make More Sense to Rent or Buy in Your Market?

Advertisement
Market Data + Trends

Does it Make More Sense to Rent or Buy in Your Market?


March 4, 2021
Chicago
Photo: Iuliia Sokolovska

Rents in urban areas have dropped as a result of the pandemic, but even so, buying makes the most sense in these 10 metros, says Realtor.com. Thanks to record low interest rates, the monthly cost of purchasing a home has changed little despite ever-increasing home prices. To identify the metros where it’s most logical to buy versus rent, the Realtor.com analyzed the monthly cost of buying a home with a 30-year fixed-rate mortgage at each city’s median listing price, including taxes and insurance. Across all 50 metros, the monthly cost to purchase a median home in January was $1,988 while the median monthly rent was $1,727.

But notoriously expensive California and other West Coast metros lead the list of the highest-priced cities where, financially, it makes more sense to rent because the monthly cost of a mortgage far exceeds the median rent. These places also tend to have incomparable natural beauty and outdoor access and are popular vacation destinations. Two had median list prices over $1 million.

These more expensive markets tend to have a higher share of well-paying (often tech) jobs occupied by a high concentration of young professionals who have plenty of cash to spend.

“Wherever there are high-paying jobs and employers supporting them, you’re beginning to see higher-end rental complexes that can start at $3,500,” says Ramesh Rao, a Coldwell Banker Global Luxury agent based in Silicon Valley. “When these people start looking at buying a median price home, their total cost toward any kind of roof over their head goes up two times.”

Read More
 

Related Stories

Market Data + Trends

Median Home Listing Price Now $370,000

Home prices posted a year-over-year median price increase of 15%, bringing the median home listing price to $370,000, according to Realtor.com’s…

Market Data + Trends

Freddie Mac Says the Market Needs 4 Million More Homes

In order to close the gap between housing demand and inventory, the market needs 4 million more homes for sale, according to a new report from…

Remodeling

Remodeling Market to Strengthen Through Next Year

Home improvement and repair spending will continue at a healthy pace through 2021 and into the following year, according to the Joint Center for…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.