These US Cities Are More Affordable For Buyers Than Renters

Have you ever wondered if it’s cheaper to buy or rent in your city? GoBankingRates conducted a study to find out just that. They factored in the median listing price, property taxes, and home insurance, then calculated the mortgage based on a 30-year fixed-rate loan with a 20% down payment. The study included that of the 85 most populated cities in America, 31 had cheaper monthly mortgages than the average rent. You may be surprised to see noteworthy cities in states like California, Texas, and even New York may be more affordable for buyers than renters.

Philadelphia, Pennsylvania Mortgage: $1,192

Jumping Rocks/Universal Images Group via Getty Images
Jumping Rocks/Universal Images Group via Getty Images

If you want that big-city feel without the big-city cost, Philadelphia may be the right spot for you. Full of historic monuments alongside modern skyscrapers, the notable city only has a median home value of $157,500.

GoBankingRates calculated the average monthly mortgage payment to be $1,192. Alternatively, the average monthly rent is $1,260, meaning you can save almost $70 a month by owning rather than renting. That could pay for your streaming subscription services, a fancy gym membership, or a date night!

Colorado Springs, Colorado Mortgage: $1,545

colorado-springs
Getty Images
Getty Images

Colorado Springs has been on the rise as a prominent city with sweeping landscapes. If you love watching the seasons change, look no further than this gorgeous town. The median home value is a moderate $296,100.

Using GoBankingRate’s estimations, that comes out to an average mortgage payment of $1,545. By comparison, the average rent is $1,551. While that’s only a $6 difference, there’s something to be said about knowing your money is going towards paying something off.

Sacramento, California Mortgage: $1,622

Carol M. Highsmith/Buyenlarge/Getty Images
Carol M. Highsmith/Buyenlarge/Getty Images

If you’re eager to get to the Golden State but are nervous about those golden prices, you may be surprised at how reasonably priced California’s capital city is. According to GoBankingRates, the city’s median home value is $327,200.

That comes out to an average monthly mortgage of $1,622, or about half of what you’d expect in other big California cities. Alternatively, the average Sacramento rent is $1,706! That’s almost $100 in savings each month to own rather than rent.

Jacksonville, Florida Mortgage: $1,137

Jeffrey Greenberg/Universal Images Group via Getty Images
Jeffrey Greenberg/Universal Images Group via Getty Images

Florida is known for being a less expensive coastal state compared to others, like California. If you can handle the thunderstorms, you’re looking at a mere $179,300 median home value in the city of Jacksonville.

That translates to an average monthly mortgage payment of $1,137. By contrast, the city’s average monthly rent is $1,259. That’s nearly $120 in savings or about 10% off! If you’re someone who gets excited over 10% off coupons, then just imagine being able to apply them to your monthly housing payment.

Phoenix, Arizona Mortgage: $1,383

DANIEL SLIM/AFP via Getty Images
DANIEL SLIM/AFP via Getty Images

Can’t take the cold? Arizona may be the state for you. Their popular city of Phoenix is surrounded by a panoramic mountain range and warm weather year-round. The median home value is $244,600, which GoBankingRates computes to be about $1,383 a month.

By comparison, the average monthly rent in Phoenix is $1,392, or about $10 more a month. While that may not seem like much, that would come out to a total of $3,600 over the course of your 30-year mortgage loan!

Arlington, Texas Mortgage: $1,545

arlington-texas
Joe Robbins/Getty Images
Joe Robbins/Getty Images

The big state of Texas has plenty of big cities, including Arlington, home of the famous Cowboys Stadium (now called the AT&T Stadium). In this town, the median home value is $211,200.

The average monthly payment comes out to $1,545, which is just below the average monthly rent of $1,555. You could take that extra $10 a month and save up for stadium tickets! Alternatively, you could buy a couple of lattes, a few gallons of gas, or a full Costco pizza.

Memphis, Tennessee Mortgage: $652

Visions of America/Education Images/Universal Images Group via Getty Images
Visions of America/Education Images/Universal Images Group via Getty Images

Famous for the legendary Sun Studio (where greats like Elvis and Johnny Cash recorded), Memphis, Tennessee, features plenty of music landmarks. The city sits on the Mississippi River in southwestern Shelby County.

The median home value in Memphis is a mere $86,900, which comes out to about $652 a month. Alternatively, the average rent is $855! That means you could save nearly 25% by owning a home rather than renting one in this Tennessee city.

Indianapolis, Indiana Mortgage: $943

Education Images/Universal Images Group via Getty Images
Education Images/Universal Images Group via Getty Images

Home of the Indy 500, Indianapolis is the place to be if you’re a racing fan. Sports lovers will also appreciate the Lucas Oil Stadium, and you can’t miss the Children’s Museum of Indianapolis, the largest in the world.

The median home value in Indianapolis is $145,800, or $943 a month. On the other hand, the average monthly rent is $1,139. With that extra $200 a month, you’d have plenty of spare cash to pay for tickets and events.

Milwaukee, Wisconsin Mortgage: $890

Joe Sohm/Visions of America/Universal Images Group via Getty Images
Joe Sohm/Visions of America/Universal Images Group via Getty Images

Located on Lake Michigan’s western shore is Milwaukee, Wisconsin. One of the highlights of this city is the Harley-Davidson Museum, which features a motorcycle owned by the late and great Elvis Presley.

The median home value in this city is $123,500. GoBankingRates estimates that the average monthly mortgage payment would be $890, compared to the average rent of $1,051. You could put that extra $160 a month towards your gas tank and forget about stressing over regular vs. premium.

Oklahoma City, Oklahoma Mortgage: $1,006

Visions of America/Universal Images Group via Getty Images
Visions of America/Universal Images Group via Getty Images

As the name implies, Oklahoma City is the capital city of Oklahoma. The city is known for its cowboy culture. The state as a whole is known for tornadoes, so be sure to keep that in mind. The median home value in this windy city is $132,500.

That comes out to $1,006 if you use the factors set forth by GoBankingRates. Alternatively, the average monthly rent is $1,084. With that extra $80, you could afford a night on the town.

Albuquerque, New Mexico Mortgage: $1,171

Elena Sannikova/Pixabay
Elena Sannikova/Pixabay

Albuquerque is the largest city in New Mexico, featuring a mix of historic adobe buildings in Old Town and a modern downtown. The median home value in this high desert city is $204,600, which comes out to $1,171 a month.

Alternatively, the average monthly rent is $1,240, or about $70 more per month. Use the extra cash to visit the city’s museums, purchase some Native American handicrafts, or attend the noteworthy Gathering of Nations Pow Wow.

Cleveland, Ohio Mortgage: $579

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Getty Images

Cleveland is the second-largest city in Ohio and features the Rock-N-Roll Hall of Fame. Other top sightings include the West Side Market, annual air show, and Lake Erie. The median home value is a mere $58,000!

That breaks down to a $579 monthly mortgage payment. The average rent is $857, which is a whopping 32% more than the average mortgage. In other words, owners can expect to pay two-thirds as much as renters on their housing bill in Cleveland.

Greensboro, North Carolina Mortgage: $1,080

Katherine Frey/The The Washington Post via Getty Images
Katherine Frey/The The Washington Post via Getty Images

Greensboro, North Carolina features the International Civil Rights Center & Museum, a hands-on museum at the Science Center, and the Bog Garden wetlands. The median home value in the city is $147,400.

That comes out to an average monthly mortgage payment of $1,080. On the other hand, the average monthly rent in Greensboro is $1,116. With that extra $36, you could pay for your gym membership, get a latte every day, or take a date to the movies.

Buffalo, New York Mortgage: $776

John Greim/LightRocket via Getty Images
John Greim/LightRocket via Getty Images

If you want the New York City feel without the cost, look no further than Buffalo. The city is the second-largest in New York and features a modest version of the Big Apple skyscrapers. The median home value is only $86,800.

That comes out to an average monthly mortgage payment of $776. Transversely, the average monthly rent is $942. That’s a difference of $166, which you could use to fill up your gas tank a few times per month!

St. Paul, Minnesota Mortgage: $1,268

KAREN BLEIER/AFP via Getty Images
KAREN BLEIER/AFP via Getty Images

The capital city of Minnesota, Saint Paul, is the other half of the “Twin Cities” that includes Minneapolis. Known as the business hub of the Upper Midwest, the city features a variety of sights, including its Science Museum and Xcel Energy Center.

The town’s median home value is $220,600, which comes out to $1,268 a month as the mortgage payment. The average rent is a whopping $1,494, meaning homeowners can save more than $200 a month compared to renters.

Anchorage, Alaska Mortgage: $1,708

David Mark/Pixabay
David Mark/Pixabay

If you love breathtaking, snow-covered land, and don’t mind the sun staying up for a few months out of the year, Anchorage may be your dream city. The Alaskan town looks like your typical metropolitan area, with the exception of a snowy backdrop.

The median home value in this city is $339,000, which GoBankingRates computes is an average monthly mortgage payment of $1,708. Transversely, the average monthly rent is $1,817. With that extra $100 a month, you could revamp your closet with winter-proof attire.

Silver Spring, Maryland Mortgage: $2,047

Jahi Chikwendiu/The Washington Post via Getty Images
Jahi Chikwendiu/The Washington Post via Getty Images

If you’re eager to be near Washington DC but not directly in it, Silver Spring, Maryland, may be a perfect alternative. The city features the American Film Institute and The Fillmore music venue. The median home value is $407,600.

That breaks down to an average monthly mortgage payment of $2,047. Contrarily, the average monthly rent is $2,236. That means that Silver Spring homeowners can expect to pay about $200 less on the house payment than renters.

Columbus, Ohio Mortgage: $1,158

Jumping Rocks/Universal Images Group via Getty Images
Jumping Rocks/Universal Images Group via Getty Images

Ohio’s capital, Columbus, features a string of parks along the Scioto River, along with trails and an interactive fountain. You can also check out their art museum and the restored brick houses of the German Village.

The city’s median home value is $157,900, which breaks down to an average monthly mortgage payment of $1,158. Alternatively, the average monthly rent is $1,204. With that extra $50 a month, you could pay for a variety of subscription services.

Virginia Beach, Virginia Mortgage: $1,538

virginia-beach
Annette Holloway/Icon Sportswire/Getty Images
Annette Holloway/Icon Sportswire/Getty Images

If you’re looking for a city that’s both historical and coastal, check out Virginia Beach. Located in southeastern Virginia, the town features a 3-mile boardwalk and a First Landing State Park where Jamestown colonists arrived in 1607.

The median home value is $269,600, which GoBankingRates estimates would translate to a $1,538 average monthly mortgage payment. By comparison, the average monthly rent in Virginia Beach is $1,582. That means renters pay an average of $44 more per month on their housing payment.

Stockton, California: $1,547

Justin Sullivan/Getty Images
Justin Sullivan/Getty Images

With all of the well-known cities at California’s Northern and Southern ends, you may not have heard of the central valley town of Stockton. The city features Oak Grove Regional Park and hands-on exhibits at their children’s museum.

The median home value in Stockton is $303,400. That breaks down to an average monthly mortgage payment of $1,547. The average monthly rent is $1,569, meaning that renters typically pay about $20 more on their housing bill than homeowners in this California city.