The Top U.S. Cities for Renting vs. Buying

Row of brownstone in Park Slope on a winter afternoon. — Artur Dancs/istockphoto

If you’re looking for a fresh start in a new city or thinking about moving somewhere more affordable, Cheapism has you covered with this list that compares the best 20 cities in the U.S. that offer the most bang for your buck whether you're looking to rent or to buy. The cost of rent increased 14.1% to $1,876 in June in the nation’s 50 largest metropolitan areas, according to a monthly report by Realtor.com.

Detail view of Boston's famous brownstone architecture — 3dan3/istockphoto

In these cities, the monthly cost of renting a home is lower than the cost of buying a starter home for two main reasons: stable annual rent growth and a high concentration of workers earning high wages, such as in tech hubs like Seattle, where home values shot up 19.4% in the past year.

Median monthly rent: $1,864

Estimated monthly mortgage: $3,685

Median monthly rent: $3,171

Estimated monthly mortgage: $5,705

Median monthly rent: $2,299

Estimated monthly mortgage: $4,100

Median monthly rent: $2,989
Estimated monthly mortgage: $5,081

An aerial and panoramic view of the historic Plaza de Cesar Chavez in San Jose, CA. — GerardoBrucker/istockphoto

Median monthly rent: $3,324

Estimated monthly mortgage: $5,499

Median monthly rent: $1,833

Estimated monthly mortgage: $2,961

Median monthly rent: $3,051

Estimated monthly mortgage: $4,897

Boston, Massachusetts, USA downtown cityscape. — SeanPavonePhoto/istockphoto

Median monthly rent: $2,966
Estimated monthly mortgage: $4,664

Median monthly rent: $1,450
Estimated monthly mortgage: $2,223

Median monthly rent: $1,781
Estimated monthly mortgage: $2,709

Three houses in a Cleveland, Ohio neighborhood. — Davel5957/istockphoto

By comparison, research shows that cities in the Midwest and South favor buying over renting due to rising wages and more affordable mortgage rates that counter the soaring cost of homebuying in other parts of the country. The majority of these areas tend to have fewer people and are more geographically sparse.