Key facts
- Zumper analyzed 83 US cities to determine the best places to buy versus rent.
- A price-to-rent ratio was used to compare homeownership costs with rental costs.
- San Francisco, San Jose, and Boise are among cities where renting is more favorable.
- New York City, despite high home prices, is considered relatively buy-favorable due to high rents.
The decision to buy or rent a home is influenced by location, according to a new analysis by real estate site Zumper. The company examined 83 of the largest U.S. cities, calculating a price-to-rent ratio to determine which markets favor buyers and which favor renters.
Cities that are frequently in the news for being unaffordable, such as San Francisco, tend to be better places to rent. However, Zumper market expert Crystal Chen noted that in some expensive cities, like New York City, rents can sometimes outpace mortgage payments, making buying relatively more favorable despite the high sticker price for homes.
Migration trends have also impacted affordability. Boise, Idaho, for example, saw home prices surge during the pandemic as it became a refuge for people moving from coastal cities. This surge has made renting significantly cheaper than owning in Boise.
The analysis identified 10 cities where buying a home is more advantageous and 10 where renting is the better option.