It’s better to buy a home than rent one in these popular NC cities, report says
While renting a home can typically be more affordable than buying, that may not be the case in certain cities, especially in North Carolina.
Stacker compiled a list of the top 50 cities where it’s better to buy than to rent based on home and rent prices from the largest metros across the U.S.
According to the report, most of the cities are in the Midwest and South, including two in North Carolina: Fayetteville and High Point.
The price-to-rent ratio, a metric used to measure whether it is cheaper to buy or rent, or determine if the housing market is overvalued, was calculated by dividing the 2023 median home price in that city by the annualized rent. The report says in the biggest cities in the country, the average price-to-rent ratio was 18.58.
Here’s how other cities, including those in North Carolina, compare and why it may be better to splurge on a home over renting, according to the report:
Fayetteville (ranked #46)
Price-to-rent ratio: 12.12
Median sale price: $195,603
Median annual rent: $16,137 ($1,345 per month)
High Point (ranked #32)
Price-to-rent ratio: 11.23
Median sale price: $224,055
Median annual rent: $19,951 ($1,663 per month)
While Stacker’s report covers the costs of renting and home sale prices, the analysis does not include other expenses that come along with the homebuying process like closing costs and monthly mortgage payments, which can vary depending on the type of loan secured, interest rates, or credit scores.
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