Investors, Please note that the Legacy Platform of Patch of Land Inc, completed an asset sale on July 27th of 2021. All remaining crowd assets, loans and investments are being actively managed in an effort to wind down the platform, with an expected cessation of business activities by the end of the year 2022. Due to limited remaining resources, property updates may not be available and are being made upon request. For information regarding any remaining portfolio or for any questions or concerns, please contact [email protected]

The Patch of Land Blog

Learn about all the latest happenings.

The Top 5 Cities to Buy Versus Rent Might Surprise You!

Trulia analyzed data in 100 metropolitan cities and discovered that in some cities there was a major disparity between the median cost of paying a mortgage versus renting. In fact, the top 5 cities to buy versus rent showed such a large difference in savings that you might consider moving out of your apartment after reading this!

For this analysis, Trulia estimated sale prices and rents for similar homes in similar neighborhoods. In addition, the calculation took into account the initial monthly costs of insurance and taxes, maintenance, inflation, and price/rent appreciation. One-time transactional costs such as down payments, sales proceeds and security deposits were also taken into account. Furthermore, Trulia based their figures on a 30-year fixed mortgage at a 4.5% rate, with a 20% down payment, and the assumption that the homeowner will reside in their home for a minimum of seven years.

The results showed homebuyers saved an average of 38% over renting nationwide. While coastal cities like Los Angeles and New York had a much smaller disparity, other major US cities posted huge differentials.

Top 5 Cities to Buy Versus Rent


Top 5 Cities to Buy Versus Rent

  • Median home price = $190,000
  • Median rent = $1,650
  • Savings of buying vs. renting = 41%

Dallas was an area that wasn’t fazed too much by the housing crisis. In fact home prices fell only 11% and have recovered since. Although the city has seen an increase in the price of homes lately, the numbers show that you can still get a better deal buying over renting. Plus prices are expected to appreciate for the foreseeable future, so the investment is worth it.


Top 5 Cities to Buy Versus Rent

  • Median home price = $200,000
  • Median rent = $1,800
  • Savings of buying vs. renting = 45%

Houston we have a problem... if you’re renting. Houston is similar to Dallas in respect to the fact that the area has lots of land, which helps keep the median home price down. Plus with an abundance of energy service and big oil companies in the city, Dallas is a great location for homebuyers to settle in for more than a few years.


Top 5 Cities to Buy Versus Rent

  • Median home price = $175,000
  • Median rent = $1,600
  • Savings of buying vs. renting = 46%

The city of brotherly love definitely shows more appreciation towards homebuyers than renters. Philadelphia’s housing market has remained fairly solid over the past years. The city posts an above average median household income of $67,000, which has helped keep prices steady. In Philly buying looks to be worth it, especially with mortgage rates below 4.5% for 30-year fixed loans.


Top 5 Cities to Buy Versus Rent

  • Median home price = $170,000
  • Median rent = $1,700
  • Savings of buying vs. renting = 47%

Buying a home in the Windy City blows renting out of the water. In January median home prices fell $10,000 below the national median to $170,000. Simultaneously rents rose approximately 7% in the last year. The combination results in a huge savings for those looking for a home in this buyer’s market.


Top 5 Cities to Buy Versus Rent

  • Median home price = $130,000
  • Median rent = $1,350
  • Savings of buying vs. renting = 52%

The ATL is making a name for itself in the housing market. According to Trulia, the median home price is $130,000. On top of that, rents are around 10% cheaper than the national median. Even with low prices across the board, the Atlanta metro area still poses a better deal for buyers than renters, as many bargain hunters have found great deals in the city's suburban areas.

So there are the top 5 cities to buy versus rent.  Were you surprised by any of the locations? Would you pack up and go live in any of these cities? How long do you think these buyer’s markets will remain stable? Leave us a comment and let us know what you think!

Related Article: The Rent is Too Damned High!

If you want to learn more, take a look at some of the most commonly asked questions we receive about real estate crowdfunding on a daily basis and find out why so many people are crowdfunding real estate projects across the country with Patch of Land.
New Call-to-action
If you still want to know how Patch of Land works for professional real estate developers and accredited investors, please visit Patch of Land’s FAQ section and learn more today.

Comments (Please allow 24hours for approval)