Homebuyers looking for a good deal have turned their attention to the Midwest. According to a recent report from Realtor.com, three of the top 10 hottest real estate markets are in this region. Rent may be cheaper in some cases, but not everywhere.
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According to HousingWire, home prices have increased more than 50% since late 2019. At the same time, an analysis by Zillow and StreetEasy found that rents increased more than 30% nationwide between 2019 and 2023. In July 2024, the median existing home sales price was $422,600, according to data from the National Association of Realtors (NAR); however, the median home price in the Midwest was $321,300—about $100,000 less.
A separate report from Realtor.com also found that renting can save you an additional $1,000 per month compared to buying a home. Still, you could potentially save thousands of dollars per year by buying a home instead in select Midwest real estate markets.
GOBankingRates conducted a study to determine the average cost of living for homeowners and renters in the 100 most populous cities in the country. According to the analysis, in seven Midwestern cities, it is cheaper to buy a home than to rent. Annual cost savings range from a few hundred dollars to over $10,000, depending on the city.
Also check out the best cities to buy a home.
Columbus, Ohio
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Total population: 902,449
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Median household income: 62,994 USD
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Average property value (June 2024): 247,042 USD
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Average monthly mortgage payment: $1,463
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Monthly living expenses for homeowners: $3,368
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Annual savings when buying instead of renting: $253
Discover more: 5 types of homes that will drop in value in 2024
Check out: 5 cities where houses will be a real bargain in two years
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Milwaukee, Wisconsin
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Total population: 573,299
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Median household income: 49,733 USD
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Average property value (June 2024): $210,407
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Average monthly mortgage payment: $1,246
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Monthly living expenses for homeowners: 3,218 USD
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Annual savings when buying instead of renting: $912
Read more: The 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 USD
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Average property value (June 2024): $232,695
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Average monthly mortgage payment: $1,378
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Monthly living expenses for homeowners: 3,266 USD
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Annual savings when buying instead of renting: $924
St. Louis, Missouri
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Total population: 298,018
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Median household income: 52,941 USD
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Average property value (June 2024): 184,129 USD
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Average monthly mortgage payment: $1,090
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Monthly living expenses for homeowners: 3,011 USD
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Annual savings when buying instead of renting: $3,408
Toledo, Ohio
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Total population: 269,962
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Median household income: 45,405 USD
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Average property value (June 2024): 124,509 USD
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Average monthly mortgage payment: $737
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Monthly living expenses for homeowners: $2,553
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Annual savings when buying instead of renting: $4,188
Read more: The 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 USD
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Average property value (June 2024): $302,992
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Average monthly mortgage payment: $1,794
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Monthly living expenses for homeowners: 3,957 USD
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Annual savings when buying instead of renting: $4,860
Detroit
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Total population: 636,787
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Median household income: 37,761 USD
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Average property value: 75,258 USD
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Average monthly mortgage payment: 446 $
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Monthly living expenses for homeowners: $2,737
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Annual savings when buying instead of renting: 10,740 USD
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This article originally appeared on GOBankingRates.com: 7 Midwest Cities Where It’s Cheaper to Buy a Home Than to Rent
