12 US Cities Where It’s Cheaper To Buy A Home Than To Rent One

by Megzuson Business, Finance, LifeJanuary 25th2 comments

Here is a list of the 12 best metropolitan areas in America, where buying a home opposed to renting may actually work out much cheaper.

The latest housing report from HotPads shows that rental price for 2-bedroom units jumped 14.4 in spring 2012 from a year ago, compared to a 4 percent rise in sale prices across 45 major U.S. cities.

We looked at the average rental and sale prices of 2 bedroom units, for 12 metros with the lowest rent-buy ratio. A lower rent ratio would signal a buyer’s market. Note: All data is for two-bedroom homes in Spring 2012. If you want to add to this article, email, blogs@megzus.com

Phoenix, Arizona

Average rent 2012: $798.67
Average
sale 2012:
$81,666.67
Rent-Buy ratio:
9

More Info: Phoenix is the capital, and largest city, of the U.S. state of Arizona, as well as the sixth most populous city in the United States of America, and is also the most populous state capital in the United States

 

Sacramento, California

Average rent 2012: $908.33
Average sale 2012: $101,433.33
Rent-Buy ratio: 9

More Info: Sacramento is the capital city of the U.S. state of California and the county seat of Sacramento County. It is located at the confluence of the Sacramento River . It is the sixth-largest city in California and the 35th largest city in the U.S.

Houston, Texas

Average rent 2012: $1,059.83
Average sale 2012: $98,133.33
Rent-Buy ratio: 8

More Info: Houston is the fourth-largest city in the United States of America, and the largest city in the state of Texas. According to the2010 U.S. Census, the city had a population of 2.1 million people within an area of 656.3 square miles.

 

Las Vegas, Nevada

Average rent 2012: $808.33
Average sale 2012: $72,883.33
Rent-Buy ratio: 8

More Info: LasVegas is the most populous city in the U.S. state of Nevada and the county seat of Clark County.[4] Las Vegas is an internationally renowned majorresort city known primarily for gambling, shopping, and fine dining

 

Riverside, California

Average rent 2012: $1,073.33
Average sale 2012:$103,833.00
Rent-Buy rat
io: 8

More Info: Riverside is a city in Riverside County, California, United States, and the county seat of the eponymous county. Named for its location beside the Santa Ana River,[2] it is the largest city in the Inland Empire area of Southern California.

San Antonio, Texas

Average rent 2012: $888.00
Average sale 2012
: $89,500.00
Rent-Buy ratio: 8

More Info: San Antonio is the seventh most populous city in the United States of America and the second most populous city in the state of Texas, with a population of 1.3 million. It was the fastest growing of the top 10 largest cities in the United States from 2000-2010.

 

Tampa, Florida

Average rent 2012: $922.67
Average sale 2012: $84,333.33
Rent-Buy ratio: 8

More Info: Tampa is a city in the U.S. state of Florida. It serves as the county seat for Hillsborough County[10] and is located on the west coast of Florida, on Tampa Bay near the Gulf of Mexico. The population of Tampa in 2011 was 346,037.[

 

 

Jacksonville, Florida

Average rent 2012: $856.00
Average sale 2012: $69,766.67
Rent-Buy ratio
: 7

More Info: Jacksonville is the largest city in the U.S. state of Florida based on population, and the largest city by area in Florida and the contiguous United States.[5] It is the county seat of Duval County,[6] with which the city government consolidated in 1968.

 

Pittsburgh, Pennsylvania

Average rent 2012: $1,046.6
Average sale 2012: $82,766.67
Rent-Buy ratio: 7

More Info: Pittsburgh is the second-largest city in the U.S. Commonwealth of Pennsylvania and the county seat of Allegheny County. Regionally, it anchors the largest urban area of the Ohio River Valley. Nationally, it is the 22nd-largest metropolitan area in the United States

 

St. Petersburg, Florida

Average rent 2012: $1,021.33
Average sale 2012:
$89,333.33
Rent-Buy ratio
: 7

More Info: St. Petersburg is a city in Pinellas County, Florida, United States. It is known as a vacation destination for both American and foreign tourists. As of the 2010 census, the population was 244,769, making St. Petersburg the fourth most populous city in the state of Florida and the largest city in Florida that is not a county seat

 

Orlando, Florida

Average rent 2012: $926.33
Average sale 2012
: $60,978.33
Rent-Buy ratio
: 5
More Info:
Orlando is a city in the central region of the U.S. state of Florida. It is the county seat of Orange County, and the center of the Greater Orlando metropolitan area. According to the 2010 US Census, the city had a population of 238,300, making Orlando the 79th largest city in the United States.

 

Detroit, Michigan

Average rent 2012: $600.00
Average sale 2012
: $9,933.33
Rent-Buy ratio:
1

More Info: Detroit is the largest city in the U.S. state of Michigan, and is the seat of Wayne County. It is the major city among the primary cultural, financial, and transportation centers in the Metro Detroit area, a region of 5.2 million people, and serves as a major port on the Detroit River connecting the Great Lakes system to the Saint Lawrence Seaway

Sources:

Business Insider | 12 US Cities Where It’s Cheaper To Buy A Home Than To Rent One
Phoneix Arizona – Wikipedia Page
Sacramento, California – Wikipedia
Houston – Wikipedia
Las Vegas – Wikipedia
Riverside, California – Wikipedia
San Antonio – Wikipedia
Tampa, Florida – Wikipedia
Pittsburgh – Wikipedia
Jacksonville, Florida – Wikipedia
St. Petersburg, Florida – Wikipedia
Detroit – Wikipedia
Orlando, Florida – Wikipedia
Main image from – Update Fort Worth

Futher Reading:

Best renters marketsacross the USA
UK’s Buy to Rent Ratio comparison – by Zoopla
100 Best Things to do in Las Vegas – Jen Reviews
Visit Phoenix.com

 


Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

2 Comments

  • Ricardo Santos on January 28th, 2013 at 10:32 am

    Thanks for this list. I emailed it to a few people. Quick question. I was thinking of moving to Florida, but before I move, I may buy a property there and rent it out, until I go ahead with the move as they seem to be very cheap..

    What do you think? Is there a better place with property that cheap?

    [Reply]

    Megzus Reply:

    Hi Ricardo, many people seem to be thinking similar to you, in either wanting to move to Orlando, Florida or more commonly, buying properties there to rent out.

    From my brief research and a few phone calls, I have found out that you can get a 3 bedroom property in Orlando, with a swimming pool & garage for approx $60,000 – $90,000, probably even cheaper.

    What I would recommend, is first finding out the neighborhood in details, doing a Google Street view of it, try going there. This is because there are some bad neighborhood which you obviously don’t want to buy a place in and also so you can see how close it is to things like schools, shops, town centre, Disney, etc. In Orlando / Florida, many places can be far away from those type of places, so you generally want to try get somewhere that doesn’t require too much travelling.

    One other thing to remember is I have heard that there can be upto 5 big tornado’s a year in Orlando, Florida and other similarly located places, so look into that.

    ====

    Now regarding your other question about if I think there could be a better place for cheaper

    a) This article mentions places that are cheap to buy in America, but I would say, if you are looking at Orlando Florida, then you would want to consider places like Miami and California (as they are similar), again make sure you’re not being offered a property in a ghetto slum

    b) Out of America there are places that you can get for the same price range, but these mainly be in random European or south American places, not in capital cities, more in random cities, jungles or hills.. America is giving good value for money in some places, but healthcare and education do cost quite a lot. One place where some properties are going at better rates is Dubai. You can get 2 bed nice apartments for approx $90,000 – $120,000 , free hold

    [Reply]

Leave a comment




*

Twitter