11 US Cities Where Renting Beats Buying by Up To $8K a Month
Buying a home has long been considered a cornerstone of financial success. But in some U.S. cities, today's high home prices, mortgage rates and ownership costs have made renting the cheaper option by a surprisingly wide margin.
To identify where renting delivers the biggest financial advantage, Zumper analyzed the 83 largest cities in the U.S. using home values, rents, price-to-rent ratios and monthly ownership premiums. In some markets, homeowners spend more than $8,500 per month than renters do.
Here are the 11 cities where renters have the largest cost advantages in the country, ranked by home price-to-rent ratio.
1. San Jose, California
Median home price: $2,030,000
Median rent: $3,073
Price-to-rent ratio: 55
Ownership premium: $8,593 per month
2. Anaheim, California
Median home price: $1,442,900
Median rent: $2,514
Price-to-rent ratio: 47.8
Ownership premium: $5,702 per month
3. Salt Lake City
Median home price: $576,500
Median rent: $1,378
Price-to-rent ratio: 34.9
Ownership premium: $1,928 per month
4. Seattle
Median home price: $772,600
Median rent: $1,972
Price-to-rent ratio: 32.6
Ownership premium: $2,575 per month
5. Portland, Oregon
Median home price: $585,800
Median rent: $1,506
Price-to-rent ratio: 32.4
Ownership premium: $2,077 per month
6. San Diego
Median home price: $1,050,000
Median rent: $2,818
Price-to-rent ratio: 31.1
Ownership premium: $3,208 per month
7. Reno, Nevada
Median home price: $602,900
Median rent: $1,735
Price-to-rent ratio: 29
Ownership premium: $1,662 per month
8. San Francisco
Median home price: $1,350,000
Median rent: $3,926
Price-to-rent ratio: 28.7
Ownership premium: $3,832 per month
9. Boise, Idaho
Median home price: $484,000
Median rent: $1,450
Price-to-rent ratio: 27.8
Ownership premium: $1,418 per month
10. Los Angeles
Median home price: $858,500
Median rent: $2,670
Price-to-rent ratio: 26.8
Ownership premium: $2,325 per month
11. Milwaukee
Median home price: $417,900
Median rent: $1,299
Price-to-rent ratio: 26.8
Ownership premium: $1,687 per month
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.