Buying over renting
Though home prices are rising in much of the country, there are still places renters can save serious cash by buying a house. The city that boasts the most savings? According to new data, that’d be Clayton, Georgia.
Don’t rent in these cities
According to the latest Rent vs. Buy Report from Realtor.com, Clayton offers local homeowners the biggest savings when compared to renting.
Residents in the area spend 18 percent of their income every month on homes they own. Renting, however, costs nearly double that, at 32 percent of their income.
Other places where the discrepancy between renting and owning is wide included Delaware, Indiana (12 percent to own, 23 percent to rent); Vigo, Indiana (14 percent vs. 24 percent); Wayne, Michigan (17 percent vs. 27 percent); and Baltimore City, Maryland (27 percent vs. 36 percent).
Overall, the monthly costs of owning a home are cheaper than those of renting in 36 percent of U.S. counties.
Where renting is more affordable
If you’re thinking of buying in New York City, you might want to re-think that. According to the same study, renting in NYC is significantly more affordable than buying. It takes the average resident 147 percent of their income to buy a home, versus 30 percent of their income to rent.
Renting is also more affordable in Monterey, California, where owning a home takes 86 percent of a resident’s monthly income versus 30 percent for renting.
Most of the cities where renting is more affordable than owning are located in the Northeast and along the West Coast, where home prices are highest.
Get today’s mortgage rates
The costs of buying a house are often more affordable than renting. Want to get in and start saving? Then shop around and see what mortgage rates you qualify for today.