Crunching the Numbers: Renting Vs. Buying in 10 U.S. Cities

As rents and home prices rise, many Americans may wonder whether renting or buying a home makes the most financial sense, and where to get the most for their money.

New research evaluated where it's cheapest to rent and buy, looking at annual median costs for renting and buying, and median incomes in the 500 largest U.S. cities. According to Realtor.com, the number one city to rent was New York, New York with a median monthly rental cost of $1,915 and median monthly homeownership costs of roughly $10,700. In Baltimore County, Maryland, it is cheaper to buy, with median monthly home ownership costs at $900 and median monthly rental cost at $1,443.

It all depends on how much money you're making compared to your expenses, what your plans and financial goals are, and where you plan to buy. "Homeownership is the opportunity to build wealth. It also helps people be more stable," says Joseph Kirchner, realtor.com's senior economist. "If there's a recession and you lose your job for a year, then people can take out a home equity loan and get through the hard times." But entry costs can be prohibitive.

Read more