Tightening of Affordability between Renting vs Buying
Renting Vs. Buying is getting ever more tighter and tighter in terms of affordability in the market place. According to the latest report, published in the fourth quarter of 2018 by Realtor.com, the price of buying was more affordable than renting in only 17% of U.S. counties, down from 25% in 2017. In fact. the difference in a mortgage payment and rent payment was only $311, with rent being on the cheaper end of that $300. The home buying price, for a home at median price is unfortunately at 31% of the national median income. While this is still close to the guideline of spending no more than 30% of your income on housing, Realtor.com points out that the cost of buying has risen by 13% since last year at this time.
The fact of the matter, however, is that the cost of renting has increased as well. While it is a bit less than buying it still has increased by 4%, making renting 25% of the median income. They also add, that the pace of rising rent, while it may seem less at this current time, will most likely outpace the cost of buying in most areas – making home buying a better long term decision, even in this volatile market.
11 Big Cities You Can Afford to Buy In
Additionally, according to stats, it is still more affordable to buy in 60% of larger counties. The 11 major cities in these markets include:
Chicago IL – Typical buying savings $344 per month.
Omaha, NE – Typical buying savings of $672 per month.
New Orleans, LA -Typical buying savings of $628 per month.
Philadelphia, PA – Typical buying savings of $373 per month.
Baton Rouge, LA – Typical buying savings of $566 per month.
Cincinnati, OH – Typical buying savings of $623 per month.
Columbia, SC – Typical buying savings of $742 per month.
Gary, IN – Typical buying savings of $578 per month.
Tulsa, OK – Typical buying savings of $644 per month.
Greenville, SC – Typical buying savings of $523 per month.
Little Rock, AK – Typical buying savings of $650 per month.
Eagle Connect Fund is dedicated to saving you money, which is why we are offering you a down-payment grant (with no payback expectations) to purchase your home, based on your qualifications*. For our full list of qualifications check out our Products Page.
If these cities are not what exactly what you were looking for, check out the additional list of 27 big cities where it is cheaper to buy than to rent.