We’ve analyzed 5 major cities (with a population of greater than 250,000) where it might be a better idea to purchase a home than rent one. We based this on property values and rental averages, including how much a property rented out for $1,000 per month in each city is worth. Think about saving up for a down payment and purchasing a home in one of these five cities as opposed to renting month to month.
5. Tucson, Arizona
Located in Arizona’s Sonoran desert, Tucson proper is home to 500,000 people – while the greater metropolitan area is closer to 1,000,000. It’s also home to the University of Arizona, so there is a young workforce with lots of shops, restaurants, and nightclubs. If you rent a home for $1,000 in Tucson, on average that home will be worth just under $200,000.
4. Jacksonville, Florida
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The largest city in the USA in terms of land size, Jacksonville is located in Northeastern Florida where the St. Johns River meets the Atlantic Ocean. Housing prices are relatively affordable in Jacksonville, with the average $1,000 per month rental property being valued at $172,080.
3. San Antonio, Texas
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Located in South Central Texas, San Antonio might be best known for being home to the Alamo. It’s also home to some really affordable housing. You can rent out a home valued at $161,000 for roughly $1,000 a month – not a bad investment!
2. Pittsburgh, Pennslyvania
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The Steel City, the City of Bridges, Sixburgh – Whatever you want to call it, Pittsburgh is a great place to call home. It’s also a great place to purchase property as opposed to renting. A $144,000 home will on average rent out for $1,000 per month in Pittsburgh, likely covering most of your mortgage payments.
1. Detroit, Michigan
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Detroit has seen hard times, but the city is making a comeback. A housing shortage has led to a rise in property values, but they’re still extremely affordable if you’re looking for a new place to call home. As businesses come back to the city, we’d expect housing prices to rise. A $1,000 per month rental in Detroit is on average valued at $75,240.
