Pittsburgh was named the best city to buy a home.
According to Clever Real Estate, despite both rent and home prices rising significantly over the past few years, when comparing rent prices to home prices, residents of Pittsburgh are better off buying. Pittsburgh had the lowest home values at $188,418, while comparatively, San Jose had the highest at over $1.4 million. In Pittsburgh, the typical monthly rent was $1,333, with a price-to-rent ratio of 12. Anything 15 or below suggests it is a better time to buy. Pittsburgh’s rents have increased in the last six years, from $1,019 to $1,333, a 31% increase. Despite home prices rising from $122,402 to $188,419, a 54% increase, home prices still remain well below the national average. The 2023 typical home value was $417,936, making Pittsburgh’s home prices 76% lower than the national average. However, Pittsburgh’s rent prices are only 33% lower than the national average of $1,863. Homebuying is the better financial choice for consumers in the Steel City.
While not as high up on the list, Philadelphia also ranked better for buying than renting, landing in 13th place. With an average rent of $1,784 a month, Philadelphia is close to the national average of $1,863. Rent has increased 34% since 2016, when it was $1,335 a month. However, home prices are well below the national average. The average home price in 2023 so far is $318,245, nearly $100,000 below the national average. However, home prices have increased nearly 60% since 2016. Despite home price growth outpacing rent growth, with a price-to-rent ratio of 15, homebuying is the way to go for consumers in Philadelphia as well.