You’ll be surprised on what’s being called the best cities to buy a new or used home in America, and with mortgage interest rates at their lowest, it’s the best time to start looking at some of these metropolitan areas.
Houston is a great city with median prices averaging $152,500. It boasts a low vacancy rate and an oil-rich economy. Throw in a bubbling entrepreneurial tech scene, and you’ve got four factors that put this city on top of the list of best places to buy a home.
San Francisco, Charlotte, N.C., Jacksonville, Fla., and St. Louis, Mo., are other areas buyers can feel safe investing in. The average vacancy rate across the major metro areas was 2.88%, and the average percent appreciation was just .07% over the last two years. With lending tight, there are also factors weighed in on the spread between a monthly rent check and a mortgage payment.
Cities where a mortgage payment was close to, or less than, the average rent were given a higher score. For instance, in Cleveland the average rent is $702, and the average mortgage is $565.78. With a lower monthly payment, tax incentives and the opportunity to build equity, it makes sense to be in Cleveland.
San Jose, Calif., has an average monthly mortgage payment of $4,322.33, versus an average rent of $1,612. On the other hand, Texas dominates mortgage-worthy areas. The state offers a business-friendly tax environment, many large corporations call the Lone Star State home, which creates jobs and tax revenue.