15 US Cities where Renting Beats Buying
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Rents all across the US seem to be creeping up. However, in some cities, it has remained stable. The average rent in the US is $ 1,231 each month. However, in certain regions the figure can be three times this amount. Landlords have the opportunity to charge such appalling sums as apartments for rent since there are very few available apartments in cities of high demand.
John Kobs, CEO of ApartmentList.co, says that the place is witnessing the lowest national vacancy rates ever since the 80s. The rate of rental vacancy has been diminishing over the last few years. The vacancy rate in 2009 was 12.3%, however, it fell in 2012 to 9.3%, as stated by the National Multi Housing Council.
At present, buying a home is getting more difficult and expensive. With the rising of home prices and mortgage rates, lenders look for high down payments and tailless credit scores to secure a loan. This is why more and more people are turning to apartments for rent rather than purchasing them. Kobs says that these factors are pushing up the rental prices.
Here is a list of the 15 cities in the US where renting may be a preferred choice than buying a home. The list has been compiled after factoring in all types of possible expenses, including mortgage payments and monthly rent, property taxes, insurance, closing costs, maintenance and anticipated price appreciation
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Wichita, which is located along the Arkansas River, is the largest city in the state of Kansas and is the best place for renting an apartment in the US. Â The average rent price here is just $ 623 per month. Two-bedroom apartments in the region come as low as $ 650 per month. An excess of 50 aviation businesses are operational in the Wichita region, where various airplane parts are produced each year.
The residential rental market in Wichita is on the upswing. Real estate experts in the region say that the place is witnessing a re-growth in renting which has been brought about by the slowly recovering economy. Steve Murray, editor of Real Trends, publisher of real estate analysis and information from Colorado says that the rental demand is going to grow and will not be a temporary phenomenon.
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This is the only Southwest based city on the list. Tuscon is the second most cost-effective city in the US for renting an apartment. Its attractive buildings are buoyed by the Santa Catalina Mountains, which makes it a unique and beautiful location. The average rental price here is $ 628 per month. Vacancy rates for single family homes and apartments are on a decline in Tucson.
Tucson has a strong economy with more than 150 high-tech firms. The rental vacancy rate which hit 17% in the early part of 2011, declined to 10% by the year end. Vacancies on single family homes declined from around 7% in Q1 to less than 1% by Q4.
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Tulsa is the 46th largest city in the US and the second largest city in the state of Oklahoma. The oil industry has dominated the economy of the city for a long time. However, with the diversification of the economy, it has created a base in various sectors like finance, aerospace, telecommunications, technology, manufacturing and high tech.
The rental vacancy rate in Tulsa in 2012 was 8.37% as reported by Census American Community Service (ACS). This figure reached its peak in 2005 and stood at 10.68%. Since then it has declined by 2.31% to 8.37%.
The average rent in Tulsa touches $ 672 per month-a tiny price for a tiny town. Thereâ€™s an array of attractive apartments for rent on the market in Tulsa. However, be cautious as the place is located in Tornado Alley which is quite often subjected to severe weather.
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With the city of Detroit, currently in bankruptcy and various services being cut off from almost all the neighborhoods, itâ€™s not amazing to find that apartments here are cheap. The average rent in the city is $ 678 per month. For this sum, you can get a one-bedroom apartment on rent in downtown.
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Indianapolis is quite a big city on this list. However, this doesnâ€™t indicate that itâ€™s costly. The average rent here is $ 692 per month, which is the same as that of Memphis. The region has been actively pulling in young individuals from the Midwest and also the close by Indiana University with its thriving job market.
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Arizona is another great place to seek apartments for rent. Cities like Phoenix are loaded with cost-effective rental condos and apartments. Itâ€™s the sixth most populated city in the US and the largest city in Arizona with approximately 1.5 million residents. Located in the â€śValley of the Sunâ€ť the place is spread on an area of 515 square miles. The median rent here is around $ 700 per month. To make the process of renting an apartment easier, you need to hire a real estate agent who can show you the best properties around that fulfils your requirements.
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Even though Arlington appears to be the smallest city in this list, its location between Dallas and Fort Worth indicates that itâ€™s not a small town. The claim of the city to fame is its stadiums, which organize Texas Rangers and Dallas Cowboys games. The place also boasts of being the largest city in the US without any type of public transportation arrangement. Hence, while renting an apartment here, make it a point to interrogate about parking facilities. The average cost for renting an apartment in Arlington is $ 713 per month.
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Out of the many cost-effective places to seek apartments for rent in Ohio, Columbus seems to be the only one that featured in this list. The place has emerged as an excellent location for technology and business, and itâ€™s home to the famous Ohio State University, which is the third largest school in the nation with respect to enrollment. The average rent for an apartment here is $ 722 per month.
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The average rent in Louisville is $ 727 per month. This place has an array of tiny apartments in the market to be rented out. The city is bordered by Indiana all along the Ohio River and has a dynamic downtown in the midst of a green, hilly countryside. The place also has a robust grassroots campaign that promotes businesses that are locally owned with the saying â€śKeep Louisville strangeâ€ť.
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Split between Missouri and Kansas, Kansas City boasts of very low rental prices in the US. The average rent here is $ 730 per month, which according to Forbes has one of the best downtowns.
The apartment market in Kansas City has become stronger as employment uncertainty coupled with a sluggish construction pipeline has led to the growth in rental demand.
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Nevada has some great places to reside and work while putting yourself up in a rented apartment rather than buying one. Â The cost of living here is low and the potential to find jobs is high. For example, the cost of living in Las Vegas is relatively less than the US average with the median rent for apartments being $800-900 per month.
There are various jobs available along the Vegas strip in various shows and casinos. The highest employment in the region is the transportation and trade industries. This includes trucking, telecommunication and retail. The unemployment rate is 12.5%, which is quite high. However, the earning potential for anyone interested lies in the entertainment industry.
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Houston is a preferred destination while seeking apartments for rent even though rents are at an all-time high. Midtown Houston apartments are the happening urban mecca of the city for young professionals and also a great place for calling it a home. Individuals are renting some of the best luxury apartments in this part of the city for a minimum sum these days.
Apartments in this part of the city are the best places youâ€™d like to live in. The biggest advantage is that the properties have the best amenities, such as security systems, fitness centers and swimming pools. The average rent here varies between $ 1000-1500.
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Following three decades of government programs directed at home ownership and the market crash in between 2007-2008, renting has become a viable option in cities like Philadelphia. The average rent for a one-bedroom apartment here is $ 1,160 per month.
The apartment-vacancy rate in the first quarter of 2012 stood at 3.9% according to real estate investment services company Marcus & Millichap. Vacancy rates are retreating following a jump this summer. In order to cater to the growth in rental properties, 2013 anticipates witnessing the addition of extra rental units compared to 2012.
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San Jose, the third largest city in California, is considered a global city now and can be a great place to live in. In 2006, the city had around 405,000 employed individuals with the unemployment rate standing at 4.6%. The rent for an apartment in San Jose varies between $ 1400- $1700, which is a little high in the list. However, itâ€™s better than buying a property as the average cost of buying a home in the region may hover around $ 700,000.
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Boston is the third most expensive city in the United States with respect to renting of apartments with the average rent standing at approximately $ 1,800 per month. However, if you move away from Back Bay and Downtown, you can get cheaper rents.
The city has plenty of neighborhoods, each of which has its own personality and flavor. Various determinants affect the place you live in. Youâ€™d like to reside close to school or work-maybe being close to great cafes and restaurants is important. Youâ€™d also like to look for apartments for rent close to public transportation. The best part is that the city offers something for almost everyone.
Robert Scales, editor of charlestownpatch.com states that the percentage of renters in Boston stands at around 66.1%.
The above list gives you a wide variety of options in renting an apartment all across the US. Renting is considered the preferred choice now with the share of individuals in the US who own their home dropping with each passing year. People are appearing to reject the concept of securing a home as a profitable investment.
According to the US Census Bureau, the percentage of people owning a home in the US in 2010 stood at 66.5%, which was a decline from the figure of 2009, which stood at 67.2%.
Research company Reis Inc said that despite the falling of vacancy rates in the US, a weak job market along with stagnant wages have stopped the increase in rents.
San Jose and San Francisco witnessed the highest effective increase in rent- both were up by 2.2% to $ 1685.72 for San Jose and $ 2, 043.02/month for San Francisco. The most expensive place with respect to apartments for rent was New York City, with a median rent of $ 3,049.37 per month, an increase of 0.9% while the cheapest city was Wichita.
Interestingly, this trend of seeking apartments for rent instead of purchasing has come at a time when homeownership has become affordable. Â Real estate website Trulia.com states that itâ€™s more cost-effective to purchase a two-bedroom apartment rather than renting in 72% of the nationâ€™s 50 largest cities. The prices of homes in the Bay Area also seem to have fallen.
But for now, it appears that Americans are more interested in renting event at a time when the expense rendered on renting is soaring. There is a serious drop in demand for homeownership in the current marketplace, as stated by Mark Obrinsky, chief economist for the National Multi Housing Council.Â The common belief that buying a home is a superior financial alternative compared to renting may no longer hold true now.
There are some good points here, Buying a property is probably the biggest financial decision youâ€™ll ever have to make. But if you do not have enough money, or are not going to live in the same place for a long time, renting is the best option, I guess