Rents in the United States
Rents in the United States are increasing at a slower rate than the previous year, but at a faster rate than before the pandemic. However, despite the fact that rents are high in most of the country’s big cities, buying a home is an even more expensive option.
Cities where it is cheaper to buy a house
According to a recent study by the real estate company Redfin, there are four metropolitan areas where it is cheaper to buy a house than to rent. Those cities are Detroit, Philadelphia, Cleveland, and Houston.
Why buying is cheaper in these cities
Redfin notes that Detroit, Philadelphia, Cleveland, and Houston didn’t see the same rise in home prices during the pandemic than other large cities in the United States. That is why they are currently more affordable for homebuyers than other places. In these cities, mortgage payments are less than a monthly rental payment.
The discounts in percentage terms
According to the study, in Detroit, the typical home is 24% cheaper to buy than to rent, the largest discount in percentage terms among the 50 largest metropolitan areas populated. By comparison, nationally, the typical home costs 25% more to buy than to rent.
On the other hand, in Philadelphia it is 7% cheaper to buy than to rent, in Cleveland it is 4% cheaper to own a home than to rent, while in Houston it is 1% cheaper to buy a house than to rent a house.
Percentage of cheaper houses to buy
According to Redfin, in Detroit, 80% of properties are cheaper to buy than to rent. In Philadelphia, 59% of houses are cheaper to buy than to rent; in Cleveland, 57% and in Houston, 52%. Nationwide, only 19% of properties are cheaper to buy than to rent.
If you’re looking to buy a house and save money, it might be worth considering one of these four cities where buying a home is cheaper than renting.
