Rental prices continue to be a mixed bag for most of America. After a steep rise in prices last year, rental units in many U.S. cities have begun to normalize a bit. With so much volatility, you may be considering buying a home, but that isn’t as affordable as it used to be either.
According to real estate site Home Bay, there are some major cities where it’s better to rent than buy a home.
Home Bay figured its data by compiling a ranking of cities based on their price-to-rent ratios, calculated by dividing the median home price by the median annual rent.
These Are the Best U.S. Cities To Rent In
The city with the highest price-to-rent ratio is San Jose, California (38), while the lowest is Pittsburgh (12), according to the report. Let’s look at the top 10 cities.
The 10 best cities to buy a home based on the price-to-rent ratio are:
- Pittsburgh, PA (price-to-rent ratio of 12)
- New Orleans, LA (12)
- Chicago, IL (12)
- Cleveland, OH (12)
- Memphis, TN (13)
- Miami, FL (13)
- Detroit, MI (14)
- Oklahoma City, OK (14)
- St. Louis, MO (14)
- Tampa, FL (14)
Why Have Rent Prices Dropped?
One big reason rent prices in the U.S. have dipped is that the construction industry has increased multi-family dwellings, according to real estate experts.
With the trend for multi-family construction trending upward, this will help the vacancy rate of rental properties, which could benefit renters if things continue as they are.
Final Word
Since 2019, the average rent has increased by more than $300, which is not good for your wallet. Wondering how much rent you can afford in New Orleans?
Use this Rent Affordability Calculator that allows you to enter some information to help you see where you stand.
