Curve

Tired of the rent race? Here’s where buying a house is more affordable

Aly J. Yale
The Mortgage Reports contributor

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.

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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.

New study reveals Millennials spend nearly $100K in rent costs by age 30

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 rent prices have jumped the most

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.

Verify your new rate (Sep 18th, 2020)

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.
Verify your new rate (Sep 18th, 2020)