When house-hunting, the location is a key aspect to take into account. It can affect the cost of renting and owning a house, which can make the first option much cheaper in certain cities.
In New York City, the difference between the average monthly rent and housing costs (for homes with a mortgage) is huge. Even though last year there was a $250 difference, with renting on the cheaper end, this year the cost of the median monthly rent is almost half of what homeowners pay.
The gap between the median rent and housing payments per month (always considering homes with a mortgage) is a big one in Boston. Luckily, the housing market in this city is the second-fastest-growing one after the slump that was caused by the current pandemic.
San Diego provides a similar scenario: the home prices (for those with a mortgage) are rising. This is the main reason why renting has become much cheaper in comparison, even during the COVID-19 pandemic.
Even if the median monthly rent and housing costs (considering homes with a mortgage) aren’t as different as other cities on the list, Hartford (Connecticut) still proves to be a very good place to rent. It’s said to have many hiring opportunities and high job satisfaction levels.
Both the average renting and housing costs per month (when it comes to houses with a mortgage) are relatively low in Chicago, compared to other cities on this list. However, experts had predicted before the pandemic that its home prices and sales would be lower, which would give renting the upper hand.
The difference in the monthly payments for rent and homeowning (for homes with a mortgage) in Philadelphia is one of the lowest in this list. The average rent and home values increased during the year of 2019, but the number of available houses decreased. This is one of the reasons why renting is an interesting option in this city.