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As home prices and mortgage rates remain stubbornly elevated, general residence possession within the second quarter of 2024 was down barely from the identical time in 2023. New residence gross sales in June 2024 have been decrease than they’ve been since 2011. But, for U.S. residents unwilling to surrender the American dream of homeownership, there are nonetheless some cities the place it’s really cheaper to purchase a house than to lease.
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In fact, you’ll nonetheless want to avoid wasting or purchase the cash for a down cost in case you intend to purchase a house. You’ll have to think about further prices similar to residence upkeep and repairs. However you’ll be able to doubtlessly snag a month-to-month mortgage cost decrease than the worth of lease in these 5 U.S. cities within the South.
Methodology: To search out the most cost effective locations to purchase a house within the South, we appeared up median lease costs from RentCafe.com, after which the median residence worth at Zillow.com. We calculated a 20% down cost after which used a mortgage calculator at 6.46% curiosity to find the monthly mortgage payment in these cities.
Memphis, Tennessee
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Common lease: $1,703
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Common residence worth: $150,672
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20% down: $30,134
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Common mortgage cost at 6.46%: $759
The rising tech financial system in Memphis — coupled with a low value of residing that’s roughly 14% lower than the nationwide common — makes this Tennessee metropolis a fascinating metropolis for younger professionals and household.
A vibrant nightlife, temperate local weather, and an inexpensive housing market put Memphis on the high of our record of locations within the South the place it’s higher (and cheaper) to purchase than to lease.
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Baltimore, Maryland
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Common lease: $1,550
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Common residence worth: $188,598
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20% down: $37,720
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Common mortgage cost 6.46%: $950
On the border between the mid-Atlantic states and the South, Baltimore, Maryland combines Southern hospitality with cooler climate and proximity to Northeastern big-city residing in close by Washington, D.C. Houses in Baltimore are surprisingly inexpensive for all town has to supply.
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Montgomery, Alabama
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Common lease: $1,200 (3 BR)
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Common residence worth: $143,859
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20% down: $28,772
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Common mortgage cost (at 6.46%): $724
Whether or not you’re seeking to retire or looking for a starter residence to lift a household, Montgomery, Alabama, has inexpensive residence choices and an general low value of residing.
Town’s wealthy historical past, multitude of parks, and a strong public faculty system make this metropolis interesting to many individuals.
Fayetteville, North Carolina
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Common lease: $1,513 (3 BR)
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Common residence worth: $218,367
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20% down: $43,673
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Common mortgage cost (at 6.46%): $1,100
A navy city off the handy I-95 hall, Fayetteville, North Carolina, presents average temperatures in comparison with different areas within the South and a value of residing 20% decrease than the nationwide common.
With loads of actions for individuals of all ages, public faculty system, and growing job alternatives as firms like Amazon have moved to the realm, Fayetteville is a superb place to quiet down in a starter residence and lift a household.
Laredo, Texas
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Common lease: $1,376 (3 BR)
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Common residence worth: $210,620
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20% down: $42,124
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Common mortgage cost (at 6.46%): $1,061
When you’re on the lookout for some great benefits of Texas, together with no state revenue tax, however really feel priced out of bigger cities like Austin and Dallas, take into account Laredo, Texas.
With a wealthy cultural heritage that mixes Mexican and American traditions — plus easy accessibility to the Rio Grande and parks that encourage getting nearer to nature — Laredo generally is a nice metropolis to purchase a house and lift a household (or retire to a quiet life on the border).
Extra From GOBankingRates
This text initially appeared on GOBankingRates.com: 5 Cities in the South Where It’s Cheaper To Buy a Home Than Rent
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