If you’re renting the property you live in, you’ve probably heard the following from well-meaning friends and relatives: You should definitely buy a house! ”
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But should you? It depends on a variety of factors, including where you live.
A study by Today’s Homeowner looked at the costs of buying and renting in 97 major cities and found that in 46 of them, renting is cheaper than buying, and the savings you make by renting can be significant. got it.
For this study, Today’s Homeowner looked at the complete picture of home ownership costs, including: Average sales price of homes in July 2022 using data from Redfin. Property taxes, based on figures from the U.S. Census Bureau’s American Community Survey. Average maintenance costs estimated by Angi. Interest rates, provided by Freddie Mac. Homeowners insurance premium prices by numbers from Quadrant Information Services.
Considering all 97 cities, homeowners will spend an average of $1.3 million over 30 years, and renters will pay an average of $1.26 million.
Nowhere is the comparison of costs for homeowners and renters more surprising than in California. In 7 out of 10 cities, it’s much more expensive to buy than to rent.
Cities where it’s much more expensive to own a home than rent
So, which are the 10 cities where investing in real estate is considered a waste of money? Here you go.
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Austin, Texas
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Cost of ownership: $1,626,126
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Rent (30 years): $1,247,485
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The difference between paying rent and owning for 30 years: Negative – $378,642
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Anaheim, California
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Cost of ownership: $2,122,069
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Rent (30 years): $1,720,907
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The difference between paying rent and owning for 30 years: Negative – $401,162
Madison, Wisconsin
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Cost of ownership: $1,188,399
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Rent (30 years): $768,155
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The difference between paying rent and owning for 30 years: Minus – $420,184
arlington, virginia
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Cost of ownership: $1,968,567
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Rent (30 years): $1,388,185
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The difference between paying rent and owning for 30 years: Minus – $580,382
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long beach california
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Cost of ownership: $2,029,029
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Rent (30 years): $1,416,371
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The difference between paying rent and owning for 30 years: Minus – $612,657
Los Angeles, California
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Cost of ownership: $2,523,447
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Rent (30 years): $1,848,268
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The difference between paying rent and owning for 30 years: Minus – $675,179
San Francisco, California
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Cost of ownership: $3,317,345
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Rent (30 years): $2,414,923
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The difference between paying rent and owning for 30 years: Minus – $902,422
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San Jose, California
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Cost of ownership: $3,420,113
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Rent (30 years): $2,229,374
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The difference between paying rent and owning for 30 years: Minus – $1,190,738
Fremont, California
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Cost of ownership: $3,413,814
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Rent (30 years): $2,213,767
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The difference between paying rent and owning for 30 years: Minus -$1,200,047
Irvine, California
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Cost of ownership: $3,380,897
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Rent (30 years): $2,059,319
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The difference between paying rent and owning for 30 years: Minus – $1,321,578
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Cities where it’s much cheaper to own a home than rent
But where do you turn if you want to own your own home for less than renting?Today’s Homeowner research identified these 10 cities.
St. Petersburg, Florida
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Cost of ownership: $1,121,868
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Rent (30 years): $1,411,382
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The difference between paying rent and owning for 30 years: $289,514
Detroit, Michigan
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Cost of ownership: $436,767
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Rent (30 years): $738,003
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The difference between paying rent and owning for 30 years: $301,237
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cleveland ohio
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Cost of ownership: $448,720
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Rent (30 years): $763,273
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The difference between paying rent and owning for 30 years: $314,553
tampa, florida
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Cost of ownership: $1,203,436
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Rent (30 years): $1,531,254
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The difference between paying rent and owning for 30 years: $327,818
Jersey City, New Jersey
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Cost of ownership: $1,853,594
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Rent (30 years): $2,193,182
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The difference between paying rent and owning for 30 years: $339,588
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new york new york
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Cost of ownership: $2,093,789
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Rent (30 years): $2,483,133
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The difference between paying rent and owning for 30 years: $389,344
baltimore, maryland
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Cost of ownership: $723,868
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Rent (30 years): $1,144,127
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The difference between paying rent and owning for 30 years: $420,259
miami, florida
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Cost of ownership: $1,626,650
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Rent (30 years): $2,059,606
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The difference between paying rent and owning for 30 years: $432,955
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chula vista, california
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Cost of ownership: $1,993,324
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Rent (30 years): $2,474,909
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The difference between paying rent and owning for 30 years: $484,585
Nashville, Tennessee
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Cost of ownership: $1,245,503
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Rent (30 years): $1,917,871
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The difference between paying rent and owning for 30 years: $672,369
This article originally appeared on GOBankingRates.com: 10 cities where real estate investing is a complete waste of money