Home & Living

10 Major Cities Where It's Cheaper To Buy Than Rent

03/07/2014 09:43am ET | Updated March 7, 2014

Think you can't afford to rent in a city? Well, that may be true, but that doesn't necessarily mean you can't afford to live in a city.

According to a team at the online real estate company Trulia, which analyzed data on the median sale prices and rents for similar homes in 100 metro areas (see below for more), you might just be throwing big bucks away if you're passing up a mortgage in favor of a lease. And yes, such is still the case when you consider rising home prices and climbing mortgage rates.

So if you're 100 percent sure that a major metropolis is for you, the decision to rent or buy isn't exactly 50/50 in these places ranked based on percentage saved.

10
New York City
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Median Rent: $2,850 Median Home Price: $520,000 Percent Saved Buying: 22
9
Los Angeles
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Median Rent: $2,100 Median Home Price: $420,000 Percent Saved Buying: 24
8
Boston
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Median Rent: $2,550 Median Home Price: $435,000 Percent Saved Buying: 30
7
Washington DC
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Median Rent: $2,100 Median Home Price: $330,000 Percent Saved Buying: 34
6
Miami
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Median Rent: $2,250 Median Home Price: $300,000 Percent Saved Buying: 38
5
Dallas
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Median Rent: $1,650 Median Home Price: $190,000 Percent Saved Buying: 41
4
Houston
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Median Rent: $1,800 Median Home Price: $200,000 Percent Saved Buying: 45
3
Philadelphia
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Median Rent: $1,600 Median Home Price: $175,000 Percent Saved Buying: 46
2
Chicago
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Median Rent: $1,700 Median Home Price: $170,000 Percent Saved Buying: 47
1
Atlanta
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Median Rent: $1,350 Median Home Price: $130,000 Percent Saved Buying: 52

In order to get a more accurate comparison, Trulia estimated sale prices and rents for similar homes in similar neighborhoods, instead of using the average sale price or rental rate. It further calculated the initial total monthly costs of owning and renting, including maintenance, insurance and taxes, as well as future costs of owning and renting, such as price and rent appreciation and inflation. Trulia also included one-time transactional costs, including down payments, sales proceeds and security deposits. It assumes that buyers get a 30-year fixed mortgage with a 4.5% rate and put 20% down and that residents stay in their home for at least seven years.

To discover more details of the report, head over to CNNMoney.

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