The path to homeownership can be daunting, especially for first-time buyers. But there is hope.
Recent data from Zoocasa sheds light on the top cities across the US where your dream of owning a home might be more attainable than you think.1
1. New York, NY
Even though owning a home in New York City saves you $781 each month compared to renting, it’s still very tough to afford a place to live, whether you’re renting or buying. Rent is super high at $4,750, and so are mortgage payments at $3,969. Plus, the typical house costs a whopping $663,100.
It might seem cheaper to own each month because interest rates are low right now, and owning a home lets you build value over time. Buying a home in New York City is expensive at the start, but it builds equity over time.
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2. Pittsburgh, PA
Pittsburgh is a great choice for people buying their first home because houses are cheaper there. The typical house costs $207,100. It’s also cheaper to own a home than rent one in Pittsburgh.
Rent for a two-bedroom place is about $1,550 each month, but the average mortgage payment is only $1,240. That means you’d save $310 every month if you owned instead of rented.
3. Chicago, IL
In Chicago, it’s actually cheaper to own a home than to rent one. The typical house costs $349,300. If you rent a two-bedroom apartment, it’ll cost you about $2,700 each month.
But if you buy a house, the average mortgage payment is only $2,091. That’s a savings of $609 every month if you own instead of rent.
4. Peoria, IL
Peoria is another city where it’s much affordable to own a home than to rent one. The typical house price is very affordable at $127,200. Rent for a two-bedroom apartment is about $1,050 each month, but the average mortgage payment is only $761.
That means you’d save $289 every month if you owned instead of rented.
5. Syracuse, NY
Syracuse is a good option for people buying their first home because the houses are less expensive there. The average house costs $198,800. It’s also cheaper to own a home than rent in Syracuse.
If you rent a two-bedroom apartment, it’ll cost you about $1,500 each month. But if you buy a house, the average mortgage payment is only $1,190. That’s a savings of $310 every month for owning a home.
6. Rochester, NY
In Rochester, it’s also cheaper to own a home than to rent one. The typical house price is $212,400. Rent for a two-bedroom apartment is about $1,500 each month, but the average mortgage payment is only $1,271.
You’ll be able to save $229 every month if you own a home instead of renting.
7. Buffalo, NY
In Buffalo, it’s also cheaper to own a home than to rent one. The typical house price is $229,700. Rent for a two-bedroom apartment is about $1,450 each month, but the average mortgage payment is only $1,375, where you’ll get to save $75 every month if you buy a home.
8. Miami, FL
In Miami, it’s less expensive to own a home than to rent one, but not by much. The typical house there costs a lot—$625,000! If you rent a two-bedroom apartment, it’ll cost you about $3,850 each month.
But if you buy a house, the average mortgage payment is $3,741. That means you’d only save $109 every month if you owned instead of rented.
9. Cleveland, OH
Cleveland is a great city for those looking to buy their first home because houses are very affordable there. In fact, it has the lowest median home price among the cities where it’s cheaper to buy than rent, at just $191,900. If you rent a two-bedroom apartment, it’ll cost you about $1,250 each month.
But if you buy a house, the average mortgage payment is only $1,149, saving you $101 every month at the very least.
10. Charleston, SC
In Charleston, it’s cheaper to own a home than to rent, but houses are still pretty pricey. The typical house costs $421,400. If you rent a two-bedroom place, it’ll cost you about $2,600 each month.
But if you buy a house, the average mortgage payment is $2,522. That means you’d save $78 every month if you owned instead of rented.
11. South Bend, IN
South Bend is another city where buying a house might be a good idea. The typical house there costs $180,000, and the mortgage payments are pretty low, around $1,077 each month.
Renting a two-bedroom place would cost you a bit more, about $1,132 per month. So, if you own instead of rent, you’d save a little bit of money each month—about $55.
12. New Orleans, LA
In New Orleans, buying a home is slightly cheaper than renting one. The typical house price there is $277,700. If you rent a two-bedroom place, it’ll cost you about $1,710 each month. But if you buy a house, the average mortgage payment is only $1,662. That means you’d save $48 in rental costs every month.
Zoocasa’s data features monthly mortgage payments excluding taxes, insurance, HOA fees, and PMI. They’re based on a 30-year, 6.78% fixed-rate mortgage using NerdWallet’s calculator. Rent data is from Zumper, and home prices are from NAR.
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Davin is a jack-of-all-trades but has professional training and experience in various home and garden subjects. He leans on other experts when needed and edits and fact-checks all articles.