A large portion of the population has bought into the idea that it is better to buy a home than to rent in all circumstances. As with most things, an absolute statement is not the wisest of choices for this situation. In reality, there are plenty of reasons to consider renting rather than buying. For example, there are some housing markets that are just so hot right now that the average property price is through the roof. The same might not hold true for the rent price. If you can rent a property for less than the cost of owning the thing, then that is well worth it.
We are all California dreamin’ at some point. However, the largest state by population in the Union is a very expensive place to live. Between the high housing prices and the property taxes thrown on, the cost of living in California is incredibly high. Consider the case of Santa Barbara County, California as an example. In that county the median price to own a home per month comes out to $6,500. Compare that to the median price of renting at $1,958 and there is really no comparison.
It is amazing that people will still throw their money at California homes to buy when there is this hefty of a price difference between owning and renting.
The Empire State does provide us with the most eye-popping difference between owning and renting that will appear on this list. In Manhattan, you are looking at median home ownership monthly prices at north of $10,000! Meanwhile, the median rent comes in around $1,915. How could a person justify buying a home in that particular area when they can get such a discount for renting?
The Boston area definitely has a lot of appeal to it. However, you do not want to be caught owning a home in that area. The reality is that you will be paying out the nose for your monthly ownership of a home in Boston. Rent a home in that same city and save yourself a boatload of money.
Everyone should consider all of the options that they have before renting versus buying in any market. These three areas in particular have clear reasons to skip out on buying in favor of renting. They are not the only ones though.