On average, homeowners spend $3,468 more annually, or $289 more monthly, than renters
nationwide.
ST.
LOUIS, Aug. 27, 2024 /PRNewswire/ -- On a pure
dollar basis, monthly rent costs are cheaper than monthly housing
payments in 48 of the 50 most populous U.S. cities, according to a
new study from Clever Real Estate, a St. Louis-based real estate company.
The analysis, which considers principal, interest, taxes, and
homeowners insurance, shows that monthly home payments are more
affordable than rent in only Cleveland and Pittsburgh.
The price-to-rent ratio, calculated by dividing the median home
price by the median annual rent, indicates that a ratio of 15 or
less strongly favors buying, while a ratio of 21 or more strongly
favors renting. Based solely on this ratio and not additional
monthly costs, it's better to buy in 18 of the 50 most populous
U.S. metros.
Cleveland is the best metro for
homebuyers, with the lowest price-to-rent ratio (11) and home
prices ($187,413) of the 50
most-populous U.S. metros. Nationally, the price-to-rent ratio sits
at 14.3 — up from 13 in 2019.
The typical monthly home payment in Cleveland is $1,331, compared to $1,426 for rent, saving homeowners $95 monthly, or $1,140 yearly.
In the most expensive metro, San
Jose, renters save an impressive $5,598 monthly, $5,309 more than the national average of
$289 monthly.
It would take over 14 years' worth of rent to afford a home
outright in the typical metro area and a whopping 38 years for a
home in San Jose.
The most affordable cities for home buyers based on
price-to-rent ratios are:
- Cleveland (11)
- Pittsburgh (11.9)
- Chicago (12.1)
- New Orleans (12.8)
- Memphis (12.9)
- Birmingham (13.2)
- Detroit (13.6)
- St. Louis (13.6)
- Cincinnati (13.8)
- Indianapolis (13.9)
The worst cities for home buyers, with price-to-rent
ratios over 21 are:
- San Jose (37.6)
- San Francisco (30.7)
- Los Angeles (26.4)
- Seattle (25.9)
- Salt Lake City (25.6)
- San Diego (24.1)
- Portland (24.1)
- Denver (23.2)
- Austin (21)
Although 57% of Americans believe renting is a waste of money,
the average home price nationwide has risen 39% more than the
average rent over the past five years and 72% faster in the past
year.
Read the full report at:
https://listwithclever.com/research/price-to-rent-ratio-2024/
About Clever Real Estate
Clever Real Estate is a technology company that produces
educational real estate content reaching over 10 million readers
annually, and its nationwide agent matching service has a 5.0-star
Trustpilot rating across 2,300+ customer reviews. Since launching
in 2017, Clever has reached $8.5
billion in real estate sold, matched 100,000+ customers with
realtors, and saved consumers over $160
million on commission fees. Clever's network spans 19,000
agents across all 50 states.
Please contact Nicole Lehman at
382369@email4pr.com with any questions or to arrange an
interview.
CONTACT:
Nicole Lehman
Clever Real Estate
382369@email4pr.com
724-719-0406
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SOURCE Clever Real Estate