WatchUsing more than 5 million rents and prices, here are cities in the US ranked from best to worst deals for buyers, expressed as number of months of average rent it takes to buy an average house.
Best deal for buyers is El Mirage, AZ.
+------------------------+-------+--------+ | city | state | months | +------------------------+-------+--------+ | El Mirage | AZ | 92 | | Youngtown | AZ | 93 | | Sun City | CA | 109 | | Laguna Woods | CA | 109 | | Tolleson | AZ | 110 | | Buckeye | AZ | 112 | | Adelanto | CA | 112 | | Maricopa | AZ | 113 | | North Las Vegas | NV | 113 | | Philadelphia | PA | 114 | | Victorville | CA | 114 | | Hesperia | CA | 115 | | Winter Haven | FL | 118 | | Laveen | AZ | 120 | | Champaign | IL | 121 | | Avondale | AZ | 121 | | Rialto | CA | 121 | | Lancaster | CA | 128 | | Moreno Valley | CA | 128 | | Antioch | CA | 135 | | Reno | NV | 137 | | Glendale | AZ | 141 | | Sun City | AZ | 144 | | Palmdale | CA | 145 | | Surprise | AZ | 148 | | Fontana | CA | 152 | | Tulare | CA | 153 | | San Pablo | CA | 154 | | Tracy | CA | 155 | | Vallejo | CA | 157 | | Oakley | CA | 157 | | Queen Creek | AZ | 157 | | College Station | TX | 158 | | Hercules | CA | 160 | | Evansville | IN | 162 | | Salinas | CA | 163 | | National City | CA | 164 | | Las Vegas | NV | 164 | | Pacoima | CA | 166 | | Peoria | AZ | 170 | | Yuma | AZ | 170 | | Rancho Cucamonga | CA | 170 | | Gilbert | AZ | 174 | | Suisun City | CA | 175 | | Columbia | SC | 178 | | Kennewick | WA | 178 | | Chino | CA | 180 | | Corona | CA | 181 | | American Canyon | CA | 182 | | Providence | RI | 182 | | Rochester | MN | 183 | | Spanaway | WA | 184 | | Goodyear | AZ | 185 | | Yelm | WA | 185 | | Beaumont | CA | 185 | | Pittsburg | CA | 186 | | Lawrence | KS | 188 | | Fresno | CA | 188 | | Litchfield Park | AZ | 190 | | Vacaville | CA | 190 | | Citrus Heights | CA | 190 | | Frederick | MD | 190 | | Rancho Cordova | CA | 191 | | Springfield | MO | 191 | | Ypsilanti | MI | 192 | | Denver | CO | 192 | | Orting | WA | 192 | | San Marcos | TX | 192 | | Emeryville | CA | 193 | | Tempe | AZ | 197 | | Grove City | OH | 198 | | Lincoln | NE | 199 | | Anthem | AZ | 200 | | Salem | OR | 201 | | Temecula | CA | 201 | | Canyon Country | CA | 201 | | Phoenix | AZ | 202 | | Tallahassee | FL | 202 | | Modesto | CA | 203 | | Orlando | FL | 204 | | Mesa | AZ | 204 | | Inglewood | CA | 206 | | Rohnert Park | CA | 207 | | Richmond | CA | 210 | | Stanton | CA | 211 | | Carson | CA | 212 | | Ithaca | NY | 212 | | Banning | CA | 213 | | Athens | GA | 214 | | Brentwood | CA | 214 | | Pomona | CA | 214 | | Chandler | AZ | 215 | | Winston Salem | NC | 217 | | Stockton | CA | 218 | | Winter Park | FL | 220 | | Panorama City | CA | 222 | | Graham | WA | 222 | | Fredericksburg | VA | 222 | | Sun City West | AZ | 222 | | Indianapolis | IN | 223 | | Baldwin Park | CA | 223 | | Sacramento | CA | 224 | | Sylmar | CA | 225 | | Azusa | CA | 225 | | Glen Burnie | MD | 226 | | Spring Valley | CA | 226 | | Chula Vista | CA | 227 | | Concord | CA | 227 | | Honolulu | HI | 227 | | Portland | ME | 227 | | Beaverton | OR | 227 | | Sierra Vista | AZ | 227 | | Norwalk | CA | 229 | | Hillsboro | OR | 229 | | Gwynn Oak | MD | 230 | | El Sobrante | CA | 231 | | Hollister | CA | 232 | | Columbus | OH | 233 | | Bonney Lake | WA | 233 | | Aliso Viejo | CA | 234 | | Lacey | WA | 235 | | Marysville | WA | 235 | | Seal Beach | CA | 236 | | Charlottesville | VA | 241 | | Reseda | CA | 242 | | Rochester | NY | 242 | | San Luis Obispo | CA | 243 | | Manteca | CA | 245 | | Newark | CA | 246 | | Lakeside | CA | 246 | | Fort Collins | CO | 246 | | San Marcos | CA | 247 | | Pinole | CA | 247 | | Fairfield | CA | 248 | | Winnetka | CA | 248 | | Rancho Santa Margarita | CA | 249 | | Cerritos | CA | 250 | | Centralia | WA | 250 | | Florence | AZ | 251 | | La Mirada | CA | 253 | | Albuquerque | NM | 254 | | Orange | CA | 256 | | Valencia | CA | 257 | | Big Bear City | CA | 258 | | Tucson | AZ | 258 | | New Haven | CT | 258 | | Hayward | CA | 259 | | Flagstaff | AZ | 259 | | North Hills | CA | 259 | | Lakewood | CA | 260 | | Oceanside | CA | 260 | | Everett | WA | 261 | | Gainesville | FL | 262 | | Snohomish | WA | 262 | | Union City | CA | 262 | | Daly City | CA | 263 | | Jacksonville | FL | 263 | | El Cajon | CA | 263 | | Auburn | WA | 266 | | Redding | CA | 266 | | Discovery Bay | CA | 266 | | Granada Hills | CA | 267 | | Gardena | CA | 267 | | Federal Way | WA | 268 | | Lake Stevens | WA | 269 | | South San Francisco | CA | 269 | | Shelton | WA | 270 | | Kent | WA | 271 | | Santa Clarita | CA | 273 | | Colorado Springs | CO | 273 | | Benicia | CA | 274 | | Cookeville | TN | 275 | | Mountlake Terrace | WA | 275 | | San Bruno | CA | 275 | | Granite Falls | WA | 276 | | Boulder | CO | 278 | | Wilmington | NC | 280 | | Marina Del Rey | CA | 282 | | Tacoma | WA | 282 | | La Mesa | CA | 282 | | Anaheim | CA | 282 | | Bellflower | CA | 282 | | Olympia | WA | 283 | | Eugene | OR | 283 | | Puyallup | WA | 285 | | Dublin | CA | 285 | | Acton | CA | 287 | | Port Orchard | WA | 288 | | San Leandro | CA | 290 | | Murfreesboro | TN | 293 | | Renton | WA | 295 | | Tustin | CA | 296 | | Bothell | WA | 296 | | Nashville | TN | 296 | | Bremerton | WA | 296 | | Lake Forest | CA | 297 | | La Habra | CA | 297 | | Mission Viejo | CA | 298 | | Garden Grove | CA | 298 | | Cave Creek | AZ | 298 | | Canoga Park | CA | 298 | | Albany | CA | 298 | | San Pedro | CA | 299 | | Monroe | WA | 300 | | Irvine | CA | 300 | | Vista | CA | 301 | | Kingston | WA | 303 | | Ballwin | MO | 303 | | Gilroy | CA | 303 | | Imperial Beach | CA | 303 | | Henderson | NV | 304 | | Spokane | WA | 305 | | Simi Valley | CA | 305 | | Santa Ana | CA | 306 | | Poway | CA | 307 | | San Diego | CA | 308 | | Playa Del Rey | CA | 308 | | Buena Park | CA | 309 | | Ann Arbor | MI | 309 | | Camarillo | CA | 310 | | Hacienda Heights | CA | 310 | | Pleasant Hill | CA | 311 | | Cypress | CA | 312 | | San Jose | CA | 313 | | Chatsworth | CA | 313 | | Placentia | CA | 313 | | Milpitas | CA | 314 | | Tumwater | WA | 314 | | Oakland | CA | 315 | | Van Nuys | CA | 315 | | West Covina | CA | 316 | | Duvall | WA | 317 | | Fullerton | CA | 317 | | Maple Valley | WA | 317 | | Woodland Hills | CA | 321 | | Alameda | CA | 322 | | Stanwood | WA | 323 | | Arlington | WA | 323 | | Fremont | CA | 327 | | Westminster | CA | 329 | | North Hollywood | CA | 331 | | North Bend | WA | 333 | | Redmond | WA | 333 | | Lynnwood | WA | 334 | | Berkeley | CA | 334 | | Culver City | CA | 334 | | San Ramon | CA | 335 | | Hawthorne | CA | 335 | | Scottsdale | AZ | 335 | | Santa Clara | CA | 336 | | Bend | OR | 337 | | Martinez | CA | 339 | | Poulsbo | WA | 342 | | Kenmore | WA | 342 | | Livermore | CA | 344 | | Lakewood | WA | 344 | | Woodinville | WA | 345 | | Silverdale | WA | 346 | | Novato | CA | 347 | | Oak Harbor | WA | 348 | | Santa Rosa | CA | 348 | | Long Beach | CA | 350 | | San Francisco | CA | 352 | | Brea | CA | 356 | | Pacifica | CA | 357 | | Half Moon Bay | CA | 358 | | Laguna Niguel | CA | 358 | | Alhambra | CA | 358 | | Northridge | CA | 359 | | Monrovia | CA | 359 | | Glendale | CA | 359 | | Ocean Shores | WA | 360 | | Camano Island | WA | 360 | | Walnut Creek | CA | 362 | | La Verne | CA | 362 | | Castro Valley | CA | 365 | | Savannah | GA | 367 | | Seattle | WA | 367 | | Bainbridge Island | WA | 367 | | Altadena | CA | 369 | | San Mateo | CA | 370 | | Costa Mesa | CA | 371 | | Claremont | CA | 371 | | Watsonville | CA | 372 | | San Anselmo | CA | 373 | | University Place | WA | 373 | | Torrance | CA | 373 | | Port Ludlow | WA | 377 | | Mountain View | CA | 378 | | Carlsbad | CA | 384 | | Burbank | CA | 384 | | Bellingham | WA | 385 | | Pasadena | CA | 388 | | Los Alamitos | CA | 388 | | Sunnyvale | CA | 389 | | Carmichael | CA | 390 | | Valley Village | CA | 391 | | Edmonds | WA | 391 | | Fallbrook | CA | 392 | | Snoqualmie | WA | 393 | | Issaquah | WA | 393 | | Petaluma | CA | 395 | | Los Angeles | CA | 396 | | Campbell | CA | 398 | | Morgan Hill | CA | 399 | | Rowland Heights | CA | 402 | | El Cerrito | CA | 403 | | Kirkland | WA | 407 | | Agoura Hills | CA | 411 | | Napa | CA | 412 | | Sammamish | WA | 413 | | Escondido | CA | 416 | | Millbrae | CA | 417 | | Redmond | OR | 419 | | San Rafael | CA | 421 | | Anacortes | WA | 424 | | San Carlos | CA | 425 | | Laguna Hills | CA | 426 | | Bellevue | WA | 429 | | Huntington Beach | CA | 432 | | Santa Monica | CA | 433 | | Encino | CA | 437 | | Rancho Palos Verdes | CA | 438 | | Moraga | CA | 445 | | Alpine | CA | 445 | | Carnation | WA | 445 | | Enumclaw | WA | 446 | | Danville | CA | 447 | | Mukilteo | WA | 447 | | Healdsburg | CA | 449 | | South Pasadena | CA | 454 | | Palm Springs | CA | 456 | | Redwood City | CA | 457 | | Aptos | CA | 460 | | Alamo | CA | 462 | | Redondo Beach | CA | 466 | | Santa Cruz | CA | 469 | | San Juan Capistrano | CA | 469 | | Vashon | WA | 476 | | Mill Valley | CA | 478 | | Cupertino | CA | 478 | | Tarzana | CA | 478 | | Capitola | CA | 479 | | Sausalito | CA | 489 | | Sherman Oaks | CA | 490 | | Chico | CA | 493 | | Gig Harbor | WA | 497 | | Pleasanton | CA | 499 | | Studio City | CA | 503 | | Encinitas | CA | 506 | | Sonoma | CA | 506 | | Mercer Island | WA | 510 | | West Hollywood | CA | 516 | | Arcadia | CA | 522 | | Monterey | CA | 527 | | Palo Alto | CA | 537 | | Venice | CA | 538 | | Saratoga | CA | 542 | | Belmont | CA | 544 | | Langley | WA | 545 | | Los Gatos | CA | 548 | | Fountain Hills | AZ | 550 | | Menlo Park | CA | 573 | | Dana Point | CA | 644 | | Calabasas | CA | 677 | | San Clemente | CA | 689 | | Belvedere Tiburon | CA | 711 | | Manhattan Beach | CA | 722 | | Hermosa Beach | CA | 726 | | Beverly Hills | CA | 752 | | Laguna Beach | CA | 766 | | Goleta | CA | 771 | | Burlingame | CA | 780 | | La Jolla | CA | 799 | | Malibu | CA | 845 | | Lafayette | CA | 850 | | Newport Beach | CA | 863 | +------------------------+-------+--------+
Worst deal for buyers is Newport Beach, CA.
If any reporters want to use this for a story, permission is granted as long as the story includes a live clickable link back to Patrick.net.
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Bigsby says
I am very angry, we all should be. We have been and continue to be lied to by many people in this industry. I have seen families destroyed financially and the stress leading to breakups. I have seen people who were lied to believe that they can afford something find out that they couldn't. I have been lied to my face by these same people over and over. It still happens, here on this site and when I step out into the housing market in the BA. Everyone is on the take, no one has your best interest at heart. The housing market is all about profit, commissions, make it big without hard work, etc. etc. It has ruined this country, don't you see it. It is continuing to ruin this country. If I could I would destroy the current system and put all the realtors out of work. They are horrible and don't even realize how much pain and stress they have caused. I need to hit something alright, and it is not the books. It is the Mercedes driver that talks to the family that is just barely making a living and telling them that real estate will make you rich. They are not honest people, and you are close to joining them with your dribble. Look at the data, challenge the data with logical reasoning, but don't just wave your hand and try to make it all disappear. Data lives and is real, it can be challenged properly, but you are no where near proper in your arguments.
Done
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It seems to me most of your data are from the pacific time zone area.
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LarryPatrickMaloney's website
Kudos to Patrick! This is AWESOME data!!!!
(Freshly queried from mysql no doubt :)
Gotta hand it to you Patrick, that is good material!
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hanera says
In general, no that is not true, rents have not shot up. Though of course reators lie about that all the time. They lie all day long, to test whether they can part fools and money easily.
Graph any zip code or city you want, here:
http://patrick.net/housing/graphs.php?uaddr=Monterey%2C+ca&v=rents
Though there probably are specific exceptions.
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orbitron says
What I'm saying is only that you lose much more money owning than renting the same thing in those areas.
It's your choice whether or not to burn great piles of money for the intangible feeling of ownership while living in the same quality house that you would as a renter.
I do also think the price to rent ratio has gotten further out of whack lately, but I don't have good historical data to prove that. Only data to prove that it is an exceptionally bad deal to own in San Francisco or Santa Clara.
A good thought experiment: would you accept $3,000 a month to be called a renter, with no other change in lifestyle? Seems like pretty easy money to me.
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Patrick says
My GOD, what WOULD the Jones family think of us!
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orbitron says
Great data point. So your argument to pay for an overinflated house is??? Because others people will, so you should also. That is the dumbest argument I have heard and I hear it over and over again. It is the thinking that creates bubbles. Are you not listening to the hiss that is coming out of this bubble now? Sorry if you are an owner and upset, there is more to come...
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It is absolutely amazing how crazy people get when the cumulative data collected over 2 years does not agree with their few experiences. One thing people fail to consider is that you know your situation to a high degree of truth (that is if you don't lie to yourself), but there is a lot of distorted information sent around even from your close friends. Many people don't want to say they overpaid for a house, or they pay little to rent. It is very similar to the fact when people talk about investing in stocks they always talk about them winning. Add to this distortion all the realtor and home builder propaganda out there and it makes it really hard for anyone to create an honest conclusion. Because I am in a position to buy a house in the bay area I have made it almost another job of mine to cut through this crap. This thread and how many people are all bent out of shape because the data doesn't make them look good, is just another distorted view on reality to me. Rather than dig into the data and understand the situation, it is much easier to just call it false.
I'm sure there are differences in the quality of rentals verses for sale homes that would merit a correcting factor, but nothing that large IMHO. If you think the values are off by 30-50% then maybe your assumptions also need to be scrutinized. It is much easier to criticize everyone else rather than turn the mirror on yourself though. Much in part to how the BA works in general.
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rowemoore says
I think you missed the one and only point of all of this.
The data says that houses in expensive areas are not merely expensive -- they are more expensive than renting the same thing. By a huge amount.
Which is irrational.
My own theory (well, I picked up the idea from John Talbott) is that those ridiculous prices are driven entirely by status-seeking. You just don't get status points from your friends by renting, no matter how nice the house is.
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Bigsby says
Very true and I agree. That doesn't remove the anger I have for a corrupt institution that is not there to help people. I have enough anger for everyone. ;)
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dublin hillz says
I'd be fine it that was true. But my karma did nothing to the situation and doesn't need to be taught anything. The current system punishes us all for the greed of the few. Have you seen the debt we are running try to bail out this system of greed and corruption. That is why I am angry. If people want to go destroy themselves financially, then I wouldn't care. It is when they take the whole country on the cliff dive with them. I am affected, my children will be affect. My company is affect. We should be all sick of it. I still get fliers for 0% down, it needs to stop.
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Do the rents include maintenance/CC/HOA fees? Sale price / (rent + maintenance) means a lot more than just sale price vs. rent. Just yesterday I saw a 600 square foot condo in Manhattan for about $260k -- cheap until you see the $1600-per-month maintenance!
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Ross, CA
This is a great data set, but I have some questions. First of all, are you comparing apples to apples? Single family homes for sale vs those for rent and stats for condos vs apartments? If not, your data could be getting skewed.
Also, certain areas have unique circumstances. In Newport Beach there are tons of vacation rentals that are by the week in the summer but by the month in winter. Those nine winter months are quite the deal, but are reserved mostly for highly mobile folks (e.g. college students at UC Irvine.)
To make this data relevant for most people trying to decide between renting or owning, you would need to somehow determine the nature of the rental. Apartments are almost surely long term, but many single family homes are not. In many of the cities on this list the homes that are renting are not long term and therefore could disrupt a family trying to settle in to a community. Not sure if harvesting this info is possible, but it is extremely important to the #1 demographic looking to buy: new families.
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Mobi says
Yep. There's no way that dataset accurately describes the entire U.S. It's useful comparing West Coast cities, but not much else.
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When I divide what we paid by our monthly rent, it comes to 254. The Danville average was 447. No HOA fees, nothing. Utilities are cheaper here than at the other place because the sprinkler system leaked and the house wasn't insulated properly. It was (by California standards) an older home.
We got a hell of a deal.
Nice extract, by the way.
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Wow it's mainly CA. Our state is just a mess.
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Mobi says
Yes, that's true, because it's mostly Craigslist, which is more on the west coast. I used only zip codes for which I had at least 1000 rents and 1000 prices.
Michinaga says
No, just the advertised rents. But it still gives you an idea of the rent vs buy ratios.
rowemoore says
No, just rents to prices no matter what kind of place it is. More of the rents are probably for apartments than houses, and more of the prices are probably for houses than apartments.. But since I do exactly the same measurement for every zip code, the result still seems valid: some places are better to rent in than other places.
orbitron says
Yes, the nicer neighborhoods have more expensive houses relative to renting the same thing.
The funny part is this:
The rich people should RENT and enjoy the nice area much cheaper than their owner neighbors, but they don't. They buy to impress their friends. So they lose money every month owning something they could rent much more cheaply.
The poor people should BUY because their areas are cheap to buy in. But they can't, because they don't have the money or can't get a loan. So they lose money every month renting something they could own much more cheaply.
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Patrick says
That's a good point. I didn't know things were that out of balance.
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What's up with Newport Beach? I mean,wow. I guess,bubble has just started deflating in CA.
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Monterey, CA
Where is this data from and how old is it? I live in Monterey and you have it listed at 527. It's nothing of the sort. $600,000 homes rent for around the $2500-3000 mark here.