50 Cities Where It’s Cheaper To Buy a Home Than Rent

Cameron Huddleston

October 30, 2020 at 8:00 AM·14 min read

Buying a home is often touted as a smarter financial move than renting. In the past, Americans seemed to bear this sentiment, as homeownership rates climbed year after year to reach a high of 69.2% in 2004, according to Census Bureau data. But the tide turned as the housing market started to collapse in 2007 and the U.S. economy fell into a recession. Over time, more and more people turned to renting. By 2016, the homeownership rate had fallen to 62.9%, and the percentage of renting households hit a 50-year high.

Things changed again, though, in 2017. The homeownership rate in the U.S. has been inching back up over the past two years and is now at 64.8%, according to the Census Bureau. So, if you?re renting, should you join the renewed trend toward homeownership?

To help Americans determine whether they should continue renting or take the plunge into homeownership, GOBankingRates analyzed the top 100 housing markets in the U.S. to see where you can save money in the long term by opting to buy rather than rent. The study estimated the typical monthly mortgage payment in each city by using the median list price, a 20% down payment and the current interest rate on a 30-year fixed-rate mortgage. The monthly mortgage payment was then compared to the median rent for a single-family residence, resulting in the expected savings from buying versus renting.

Note that GOBankingRates? study doesn?t factor in the initial cost of a down payment on a home, which can take many years to save up for. The study only considers the monthly mortgage payment and rent. So, if you can get past the hurdle of a down payment, buying a home in these cities makes financial sense.

Last updated: Oct. 30, 2020

Pittsburgh, USA - June 30, 2013: Residential area of Shadyside, Pittsburgh.

50. Pittsburgh

Median list price for a single-family residence: $219,000
Monthly rent: $1,398
20% down payment: $43,800
Monthly mortgage payment after 20% down: $1,180
Difference between rent and mortgage payment: $218
Annual savings when you buy instead of rent: $2,610

49. New Orleans

Median list price for a single-family residence: $318,000
Monthly rent: $1,600
20% down payment: $63,600
Monthly mortgage payment after 20% down: $1,380
Difference between rent and mortgage payment: $220
Annual savings when you buy instead of rent: $2,640

Tampa, USA - December 6, 2013: Large homes decorated during Christmas time in the Hyde Park neighborhood of Tampa, Florida, USA.

48. Tampa, Florida

Median list price for a single-family residence: $315,000
Monthly rent: $1,650
20% down payment: $63,000
Monthly mortgage payment after 20% down: $1,425
Difference between rent and mortgage payment: $225
Annual savings when you buy instead of rent: $2,700

Arlington, Texas / USA - July 27 2010: Large Pedesphere Elevated Water Tower Painted with the City Logo.

47. Arlington, Texas

Median list price for a single-family residence: $260,000
Monthly rent: $1,650
20% down payment: $52,000
Monthly mortgage payment after 20% down: $1,423
Difference between rent and mortgage payment: $227
Annual savings when you buy instead of rent: $2,724

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46. Louisville, Kentucky

Median list price for a single-family residence: $205,000
Monthly rent: $1,150
20% down payment: $41,000
Monthly mortgage payment after 20% down: $912
Difference between rent and mortgage payment: $238
Annual savings when you buy instead of rent: $2,856

45. St. Louis

Median list price for a single-family residence: $159,900
Monthly rent: $975
20% down payment: $31,980
Monthly mortgage payment after 20% down: $729
Difference between rent and mortgage payment: $246
Annual savings when you buy instead of rent: $2,952

Baton Rouge, Louisiana, USA skyline from Louisiana State Capitol.

44. Baton Rouge, Louisiana

Median list price for a single-family residence: $228,500
Monthly rent: $1,200
20% down payment: $45,700
Monthly mortgage payment after 20% down: $954
Difference between rent and mortgage payment: $246
Annual savings when you buy instead of rent: $2,952

Downtown Knoxville Tennessee Skyline Aerial.

43. Knoxville, Tennessee

Median list price for a single-family residence: $242,995
Monthly rent: $1,300
20% down payment: $48,599
Monthly mortgage payment after 20% down: $1,030
Difference between rent and mortgage payment: $270
Annual savings when you buy instead of rent: $3,240

42. Tucson, Arizona

Median list price for a single-family residence: $227,500
Monthly rent: $1,300
20% down payment: $45,500
Monthly mortgage payment after 20% down: $1,029
Difference between rent and mortgage payment: $271
Annual savings when you buy instead of rent: $3,252

41. Anaheim, California

Median list price for a single-family residence: $619,000
Monthly rent: $2,900
20% down payment: $123,800
Monthly mortgage payment after 20% down: $2,624
Difference between rent and mortgage payment: $276
Annual savings when you buy instead of rent: $3,312

Greensboro skyline with pink, orange, and yellow at sunset.

40. Greensboro, North Carolina

Median list price for a single-family residence: $207,000
Monthly rent: $1,225
20% down payment: $41,400
Monthly mortgage payment after 20% down: $948
Difference between rent and mortgage payment: $277
Annual savings when you buy instead of rent: $3,324

39. Chandler, Arizona

Median list price for a single-family residence: $349,900
Monthly rent: $1,750
20% down payment: $69,980
Monthly mortgage payment after 20% down: $1,472
Difference between rent and mortgage payment: $278
Annual savings when you buy instead of rent: $3,336

Nashville, United States - May 5, 2016: Single family residential homes are painted different colors in a Tennessee neighborhood.

38. Nashville, Tennessee

Median list price for a single-family residence: $326,000
Monthly rent: $1,725
20% down payment: $65,200
Monthly mortgage payment after 20% down: $1,445
Difference between rent and mortgage payment: $280
Annual savings when you buy instead of rent: $3,360

37. Colorado Springs, Colorado

Median list price for a single-family residence: $335,000
Monthly rent: $1,650
20% down payment: $67,000
Monthly mortgage payment after 20% down: $1,367
Difference between rent and mortgage payment: $283
Annual savings when you buy instead of rent: $3,396

ANCHORAGE, ALASKA - JUNE 8 - A scenic backyard view in a local neighborhood on June 8 2019 in Anchorage Alaska.

36. Anchorage, Alaska

Median list price for a single-family residence: $317,500
Monthly rent: $1,800
20% down payment: $63,500
Monthly mortgage payment after 20% down: $1,515
Difference between rent and mortgage payment: $285
Annual savings when you buy instead of rent: $3,420

35. Albuquerque, New Mexico

Median list price for a single-family residence: $230,995
Monthly rent: $1,350
20% down payment: $46,199
Monthly mortgage payment after 20% down: $1,045
Difference between rent and mortgage payment: $305
Annual savings when you buy instead of rent: $3,660

Downtown of Indianapolis by Indiana Central Canal.

34. Indianapolis

Median list price for a single-family residence: $174,900
Monthly rent: $1,108
20% down payment: $34,980
Monthly mortgage payment after 20% down: $795
Difference between rent and mortgage payment: $313
Annual savings when you buy instead of rent: $3,750

33. San Bernardino, California

Median list price for a single-family residence: $305,000
Monthly rent: $1,650
20% down payment: $61,000
Monthly mortgage payment after 20% down: $1,331
Difference between rent and mortgage payment: $319
Annual savings when you buy instead of rent: $3,828

32. Las Vegas

Median list price for a single-family residence: $299,999
Monthly rent: $1,599
20% down payment: $60,000
Monthly mortgage payment after 20% down: $1,279
Difference between rent and mortgage payment: $320
Annual savings when you buy instead of rent: $3,840

Downtown Miami during an amazing sunny day, it is visible the buildings and palms.

31. Miami

Median list price for a single-family residence: $479,000
Monthly rent: $2,500
20% down payment: $95,800
Monthly mortgage payment after 20% down: $2,175
Difference between rent and mortgage payment: $325
Annual savings when you buy instead of rent: $3,900

30. Toledo, Ohio

Median list price for a single-family residence: $88,250
Monthly rent: $797
20% down payment: $17,650
Monthly mortgage payment after 20% down: $470
Difference between rent and mortgage payment: $327
Annual savings when you buy instead of rent: $3,924

Los Angeles California - Beverly Hills landscape and mansions aerial view late afternoon.

29. Los Angeles

Median list price for a single-family residence: $850,000
Monthly rent: $4,000
20% down payment: $170,000
Monthly mortgage payment after 20% down: $3,661
Difference between rent and mortgage payment: $339
Annual savings when you buy instead of rent: $4,068

Philadelphia, Pennsylvania, USA dawn on the Schuylkill River at Boathouse Row.

28. Philadelphia

Median list price for a single-family residence: $235,000
Monthly rent: $1,400
20% down payment: $47,000
Monthly mortgage payment after 20% down: $1,055
Difference between rent and mortgage payment: $345
Annual savings when you buy instead of rent: $4,140

Looking south at Columbus, Ohio in the distance.

27. Columbus, Ohio

Median list price for a single-family residence: $184,900
Monthly rent: $1,343
20% down payment: $36,980
Monthly mortgage payment after 20% down: $997
Difference between rent and mortgage payment: $346
Annual savings when you buy instead of rent: $4,146

26. Sacramento, California

Median list price for a single-family residence: $343,900
Monthly rent: $1,850
20% down payment: $68,780
Monthly mortgage payment after 20% down: $1,504
Difference between rent and mortgage payment: $346
Annual savings when you buy instead of rent: $4,152

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25. Lawrenceville, Georgia

Median list price for a single-family residence: $253,850
Monthly rent: $1,550
20% down payment: $50,770
Monthly mortgage payment after 20% down: $1,191
Difference between rent and mortgage payment: $359
Annual savings when you buy instead of rent: $4,308

Corpus Christi, Texas, USA on the seawall at dawn.

24. Corpus Christi, Texas

Median list price for a single-family residence: $216,500
Monthly rent: $1,495
20% down payment: $43,300
Monthly mortgage payment after 20% down: $1,134
Difference between rent and mortgage payment: $361
Annual savings when you buy instead of rent: $4,332

High end townhouses line the streets on Mud Island, Memphis, Tennessee.

23. Memphis, Tennessee

Median list price for a single-family residence: $115,000
Monthly rent: $925
20% down payment: $23,000
Monthly mortgage payment after 20% down: $563
Difference between rent and mortgage payment: $362
Annual savings when you buy instead of rent: $4,344

A house in a residential neighborhood of Phoenix near Squaw Peak.

22. Phoenix

Median list price for a single-family residence: $285,000
Monthly rent: $1,575
20% down payment: $57,000
Monthly mortgage payment after 20% down: $1,199
Difference between rent and mortgage payment: $376
Annual savings when you buy instead of rent: $4,512

Mesa is a city in Maricopa County, in the U.

21. Mesa, Arizona

Median list price for a single-family residence: $285,000
Monthly rent: $1,595
20% down payment: $57,000
Monthly mortgage payment after 20% down: $1,199
Difference between rent and mortgage payment: $396
Annual savings when you buy instead of rent: $4,752

Buildings in downtown Columbia, South Carolina viewed from Finlay Park.

20. Columbia, South Carolina

Median list price for a single-family residence: $185,000
Monthly rent: $1,199
20% down payment: $37,000
Monthly mortgage payment after 20% down: $801
Difference between rent and mortgage payment: $398
Annual savings when you buy instead of rent: $4,776

2015: Row of houses on Chase Avenue in the Northside neighborhoo, CINCINNATI - DECEMBER 22

19. Cincinnati

Median list price for a single-family residence: $214,900
Monthly rent: $1,513
20% down payment: $42,980
Monthly mortgage payment after 20% down: $1,114
Difference between rent and mortgage payment: $399
Annual savings when you buy instead of rent: $4,782

18. Minneapolis

Median list price for a single-family residence: $299,000
Monthly rent: $1,825
20% down payment: $59,800
Monthly mortgage payment after 20% down: $1,425
Difference between rent and mortgage payment: $400
Annual savings when you buy instead of rent: $4,800

Three houses in a Cleveland, Ohio neighborhood.

17. Cleveland

Median list price for a single-family residence: $86,000
Monthly rent: $895
20% down payment: $17,200
Monthly mortgage payment after 20% down: $489
Difference between rent and mortgage payment: $406
Annual savings when you buy instead of rent: $4,872

Old brick house in the Old Salem Historic District, in Winston-Salem, North Carolina.

16. Winston-Salem, North Carolina

Median list price for a single-family residence: $192,990
Monthly rent: $1,275
20% down payment: $38,598
Monthly mortgage payment after 20% down: $866
Difference between rent and mortgage payment: $409
Annual savings when you buy instead of rent: $4,908

Rooftop view of homes in Norfolk, Virginia

15. Norfolk, Virginia

Median list price for a single-family residence: $220,000
Monthly rent: $1,425
20% down payment: $44,000
Monthly mortgage payment after 20% down: $1,008
Difference between rent and mortgage payment: $417
Annual savings when you buy instead of rent: $5,004

Picturesque luxury home with wooden verandah in traditional style overlooking quiet suburban streets under clear blue panoramic skies in this tranquil Florida community.

14. Orlando, Florida

Median list price for a single-family residence: $290,000
Monthly rent: $1,730
20% down payment: $58,000
Monthly mortgage payment after 20% down: $1,309
Difference between rent and mortgage payment: $421
Annual savings when you buy instead of rent: $5,052

The view at dusk of Little Marsh Hill houses, the suburb of Jacksonville city (Florida).

13. Jacksonville, Florida

Median list price for a single-family residence: $215,000
Monthly rent: $1,395
20% down payment: $43,000
Monthly mortgage payment after 20% down: $964
Difference between rent and mortgage payment: $431
Annual savings when you buy instead of rent: $5,172

The snow covered Longs Peak and the Rocky Mountains stand behind Downtown Denver skyscrapers, hotels, office and apartment buildings with homes and condos in the foreground.

12. Denver

Median list price for a single-family residence: $470,000
Monthly rent: $2,400
20% down payment: $94,000
Monthly mortgage payment after 20% down: $1,965
Difference between rent and mortgage payment: $435
Annual savings when you buy instead of rent: $5,220

Homes in an quiet urban neighborhood in St.

11. St. Paul, Minnesota

Median list price for a single-family residence: $229,000
Monthly rent: $1,525
20% down payment: $45,800
Monthly mortgage payment after 20% down: $1,089
Difference between rent and mortgage payment: $436
Annual savings when you buy instead of rent: $5,232

Chula Vista is the second largest city in the San Diego metropolitan area, the seventh largest city in Southern California, the fourteenth largest city in the state of California.

10. Chula Vista, California

Median list price for a single-family residence: $534,900
Monthly rent: $2,750
20% down payment: $106,980
Monthly mortgage payment after 20% down: $2,304
Difference between rent and mortgage payment: $446
Annual savings when you buy instead of rent: $5,352

9. Buffalo, New York

Median list price for a single-family residence: $109,900
Monthly rent: $1,100
20% down payment: $21,980
Monthly mortgage payment after 20% down: $645
Difference between rent and mortgage payment: $455
Annual savings when you buy instead of rent: $5,460

8. Santa Ana, California

Median list price for a single-family residence: $549,900
Monthly rent: $2,800
20% down payment: $109,980
Monthly mortgage payment after 20% down: $2,331
Difference between rent and mortgage payment: $469
Annual savings when you buy instead of rent: $5,628

Fall view of private houses neighborhood with classic american middle class homes and colorful trees along a pond reflected in a water.

7. Madison, Wisconsin

Median list price for a single-family residence: $300,000
Monthly rent: $2,100
20% down payment: $60,000
Monthly mortgage payment after 20% down: $1,602
Difference between rent and mortgage payment: $498
Annual savings when you buy instead of rent: $5,976

Little Italy district in Baltimore, Maryland, USA: May 5, 2018: Main street in Little Italy of Baltimore City.

6. Baltimore

Median list price for a single-family residence: $159,970
Monthly rent: $1,325
20% down payment: $31,994
Monthly mortgage payment after 20% down: $814
Difference between rent and mortgage payment: $511
Annual savings when you buy instead of rent: $6,132

Row of colorful, red, yellow, blue, white, green painted residential townhouses, homes, houses with brick patio gardens in summer.

5. Silver Spring, Maryland

Median list price for a single-family residence: $419,000
Monthly rent: $2,400
20% down payment: $83,800
Monthly mortgage payment after 20% down: $1,864
Difference between rent and mortgage payment: $536
Annual savings when you buy instead of rent: $6,432

Aerial view of residential neighborhood in the Autumn.

4. Aurora, Colorado

Median list price for a single-family residence: $355,000
Monthly rent: $2,095
20% down payment: $71,000
Monthly mortgage payment after 20% down: $1,484
Difference between rent and mortgage payment: $611
Annual savings when you buy instead of rent: $7,332

Hialeah, Miami, Florida, USA - November 4, 2012: Yellow House with ornaments in the front and wide driveway.

3. Hialeah, Florida

Median list price for a single-family residence: $324,740
Monthly rent: $2,145
20% down payment: $64,948
Monthly mortgage payment after 20% down: $1,474
Difference between rent and mortgage payment: $671
Annual savings when you buy instead of rent: $8,052

Houses and in the neighbourhood of Capitol Hill in Washington DC USA.

2. Washington

Median list price for a single-family residence: $600,000
Monthly rent: $3,199
20% down payment: $120,000
Monthly mortgage payment after 20% down: $2,479
Difference between rent and mortgage payment: $720
Annual savings when you buy instead of rent: $8,640

Naples, Florida, USA downtown skyline at dusk.

1. Naples, Florida

Median list price for a single-family residence: $399,000
Monthly rent: $4,500
20% down payment: $79,800
Monthly mortgage payment after 20% down: $1,702
Difference between rent and mortgage payment: $2,798
Annual savings when you buy instead of rent: $33,576

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Methodology: GOBankingRates analyzed the 100 cities with the biggest housing markets in the U.S. to determine the cities where you can save on housing in the long term by opting to buy rather than rent. GOBankingRates first compiled the median listing price for homes in each city, sourced from Zillow. Using the median listing price, a median monthly mortgage payment estimate was calculated via SmartAsset?s mortgage calculator, using a 20% down payment, Federal Reserve Economic Data?s current 30-year fixed mortgage rate and local annual property tax rates (also from SmartAsset). This was then compared to the median monthly rental price for single-family residences in each city, sourced from Zillow, to find the difference between a median mortgage payment and the median rent in each city. Cities were then ranked according to how much the median rent exceeded the median mortgage payment, with No. 1 being the city where the most money can be saved by buying over renting. All data used to conduct this study was compiled and verified on Dec. 5, 2019.

This article originally appeared on GOBankingRates.com: 50 Cities Where It’s Cheaper To Buy a Home Than Rent

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