The 10 Best Cities for Buying and Renting a Home

Editor’s Note: This story originally appeared on SmartAsset.com.

Depending on your circumstances, renting or buying a home can be a smart financial decision.

Homeownership can help you build equity and lower taxes, while renting offers greater flexibility and convenient services.

Keeping this in mind, SmartAsset ranked the 50 largest U.S. cities according to the price-to-rent ratio. This is SmartAsset’s 2021 study on the price-to-rent ratio in the 50 largest U.S. cities. Read the 2020 edition here.

To calculate the price-to-rent ratios for the 50 biggest cities nationwide, we took a look at how the median home value correlates to the median annual rent. Generally, a lower price-to-rent ratio means conditions are more favorable for buying a home and a higher price-to-rent ratio means renting is favorable.

For details on our data sources and how we put all the information together to create our final rankings, check out the data and methodology section at the end.

Following are the cities with the highest price-to-rent ratios — where renting is more favorable than buying. After that, check out the cities where buying makes the most sense.

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