Homebuyers looking for a good deal have turned their attention to the Midwest. According to a recent report by Realtor.com, three out of the top ten hottest housing markets are located in this region. In some cases, renting may be cheaper, but not everywhere.
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Home prices have increased by more than 50% since the end of 2019, according to HousingWire. At the same time, an analysis by Zillow and StreetEasy showed that rents jumped by over 30% nationwide between 2019 and 2023. As of July 2024, the median existing-home sales price was $422,600, per data from the National Association of Realtors (NAR); however, the median home price in the Midwest was $321,300 – about $100,000 cheaper.
A separate report by Realtor.com also revealed that renting can save you an extra $1,000 per month compared with buying a home. Still, you could potentially save thousands of dollars per year by purchasing a home instead in select Midwestern housing markets.
GOBankingRates conducted research to determine the average cost of living for homeowners and renters in the nation’s largest 100 cities by population. Per the analysis, it is cheaper to buy a home than to rent in seven Midwestern cities. The annual cost savings range from a couple of hundred dollars up to over $10,000, depending on the city.
Also check out the best cities where you can buy a house.
Columbus, Ohio
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Total population: 902,449
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Median household income: $62,994
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Average home value (June 2024): $247,042
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Average monthly mortgage payment: $1,463
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Homeowner monthly cost of living: $3,368
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Annual savings when you buy instead of rent: $253
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Milwaukee, Wisconsin
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Total population: 573,299
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Median household income: $49,733
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Average home value (June 2024): $210,407
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Average monthly mortgage payment: $1,246
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Homeowner monthly cost of living: $3,218
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Annual savings when you buy instead of rent: $912
Read More: 6 Best Florida Suburbs to Buy Property in the Next 5 Years, According to Real Estate Agents
Indianapolis
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Total population: 882,006
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Median household income: $59,110
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Average home value (June 2024): $232,695
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Average monthly mortgage payment: $1,378
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Homeowner monthly cost of living: $3,266
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Annual savings when you buy instead of rent: $924
St. Louis, Missouri
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Total population: 298,018
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Median household income: $52,941
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Average home value (June 2024): $184,129
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Average monthly mortgage payment: $1,090
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Homeowner monthly cost of living: $3,011
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Annual savings when you buy instead of rent: $3,408
Toledo, Ohio
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Total population: 269,962
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Median household income: $45,405
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Average home value (June 2024): $124,509
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Average monthly mortgage payment: $737
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Homeowner monthly cost of living: $2,553
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Annual savings when you buy instead of rent: $4,188
Read Next: 7 Worst States To Buy Property in the Next 5 Years, According to Real Estate Agents
Chicago
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Total population: 2,721,914
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Median household income: $71,673
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Average home value (June 2024): $302,992
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Average monthly mortgage payment: $1,794
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Homeowner monthly cost of living: $3,957
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Annual savings when you buy instead of rent: $4,860
Detroit
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Total population: 636,787
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Median household income: $37,761
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Average home value: $75,258
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Average monthly mortgage payment: $446
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Homeowner monthly cost of living: $2,737
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Annual savings when you buy instead of rent: $10,740
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This article originally appeared on GOBankingRates.com: 7 Cities in the Midwest Where It’s Cheaper To Buy a Home Than Rent
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