3 Major Cities Where Renting Makes More Sense Than Buying
August 3, 2016
Perhaps you've been hearing lately that it's a buyer's market, but depending on where you live, that may not necessarily be true. Sometimes renting is just as cost-effective as buying—maybe even more so. Here are three cities where you should definitely be looking to rent, not buy.
- New York. Most people move to New York in pursuit of a dream or adventure, not necessarily to put down permanent roots. If you find yourself in this category, you may want to look into renting rather than buying. Although rental rates in NYC are notoriously high, mortgage rates are even more daunting. On average, it takes homeowners at least five years to put enough money into their home that they could break even upon selling it.
- Seattle. The cost of homes in Seattle continues to climb, and it's no wonder why. The city is perched right on the water, a metropolis in the midst of wilderness. With Pike Place Market and a thriving arts district only minutes away from views of Mount Rainier, it's the perfect place for an outdoorsy young adult or family to set up shop. But, unless you plan on staying for more than four years, you should really shell out the $1,000 to $1,500 per month in rent rather than dropping $500,000 on a house.
- San Francisco. Another colorful, vibrant city on the water, it should come as no surprise that the cost of living in San Francisco is on the pricey side. It's not impossible to live here on a budget, though; you just have to be smart about where your money goes. You'll have more money to spend on nights out at popular local restaurants and trips to the beach if you rent instead of buying. Buyers typically spend about four years pouring money into their homes before they're in a position to get anything upon resale.
10 cities where it's better to rent than to buy [NBC News]
10 U.S. Cities Where It's Better to Rent Than Buy a Home [Money Crashers]