Home prices may be rising by double-digit percentages annually, but buying a home still may be more affordable than renting in a number of the nation’s largest cities, according to a new study from realtor.com®. Record-low mortgage rates are helping to tilt more markets in favor of buying over the past year.
Researchers analyzed the monthly cost of buying a median-priced home to the median price of renting a two- to four-bedroom unit in the 50 largest markets this January. They found that buying a home cost the same or was cheaper in 15 of the 50 largest metros, up from 13 a year ago.
Nine more metros were within 5% of leaning in favor of homebuying: Atlanta; Orlando, Fla.; Birmingham, Ala.; Phoenix; Buffalo, N.Y.; Memphis, Tenn.; Washington, D.C.; Las Vegas; and Milwaukee.