While renting a home is cheaper than buying one in most of the United States right now, there are a few exceptions. Of the 50 largest cities in the country, a new report from the real estate portal, Realtor.com, identifies five where it is actually cheaper to buy.
Here’s the list, along with a figure that indicates how much less money an average buyer paid in home costs during the month of December compared to a typical renter:
1. Memphis, Tennessee: A home buyer paid $411 less than a renter.
2. Pittsburgh, Pennsylvania: A home buyer paid $348 less than a renter.
3. Birmingham, Alabama: A home buyer paid $270 less than a renter.
4. St. Louis, Missouri: A home buyer paid $83 less than a renter.
5. Baltimore, Maryland: A home buyer paid $65 less than a renter.
In these five cities, first-time homebuyers paid an average of $235 less per month than renters.
Keep in mind that in the other 45 cities Realtor.com analyzed, renting was cheaper than buying. And, overall, the average renter paid $792 less in December housing costs than a first-time homeowner.
Realtor.com also noted that the financial advantage of buying a home in each of the five cities mentioned has shrunk over the past year amid rising home prices and rising mortgage rates.
Also, a year ago, 20 cities out of 50 were more shopper-friendly.
Realtor.com forecasts that rents will continue to rise this year, albeit at a slower pace than the 11% growth in rental prices in 2022.
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