One of the hot topics (there are juicier topics, sure) in the real estate market today is the cost of living and whether or not it’s more advantageous to rent or own in 2023/2024. With everything from increasing inflation, lower-than-average inventory for sale, and seemingly sky-high interest rates at the forefront of what’s really keeping buyers at bay, it may be time to look into the rental market (at least in the short term) before deciding to take the risk of owning in such an uncertain time.
We took the time to review several reports from prominent companies such as Zillow, Bankrate, WalletHub, Zumper, and more to create our top ten list of cities you may prefer renting over owning in 2023 and 2024.
Nashua, New Hampshire
A little cold in the winter but quaint, quiet, and beautiful the majority of the year, Nashua boasts affordable rentals to the tune of $1,700 monthly for an average one-bedroom apartment. With a beautiful downtown community, just a half-hour drive to the beach and an hour to Boston, Nashua has become quite the hidden gem for renters in the New England area. (1% rental increase on average)
Irvine, California
California is expensive, and relief needs to come faster for residents of big cities like San Diego or San Fransico in 2023. In most cases (especially near the shore), rent is rising in “the golden state,” that said, just southeast of Los Angeles is Irvine, close to the ocean, much quieter and calmer, and not much cheaper, but rent isn’t rising like it is in most of the country, which is why it makes our top ten list. (0% rental increase on average)
Lincoln, Nebraska
Moving into the center of the country, the capital of Nebraska, Lincoln has become a safe-heaven city for current and future renters. With the average rent of a one-bedroom hovering comfortably below 1k, it’s nearly a no-brainer for those looking to wait out inflation. (-8% rental decrease on average)
Plano, Texas
While Texas has been a recent destination for those fleeing California, housing and rental prices, in recent months (much like the rest of the country), have climbed to near unattainable figures. Fortunately for the residents in Plano, renting looks a heck of a lot better than buying, as rent has decreased overall by roughly 4%. Plano is not only a decent-sized city, it’s within striking distance of everything the great state has to offer.
Fargo, North Dakota
Seemingly secluded from any major city, Fargo has a more-than-meets-the-eye feel to it, especially when renting comes to mind. With a 4% decrease in the average rent for a single-bedroom apartment, the average cost of $1,445 seems like a low-key steal for anyone in the area. Rent now, buy later.
Chandler, Arizona
Arizona is struggling far more than many of its contemporary states (NM, NV, TX) when it comes to building, buying, or financing any combination of the two. Fortunately, current residents can rest easy as the rental market has dipped as much as 1% year-over-year. We highly recommend renting, at least until the water shortage gets sorted.
Sioux Falls, South Dakota
Another famed mid-western city, Sioux Falls, is often the perfect place to raise a family and build long-lasting relationships with great people. With a single-bedroom apartment available for right around $900 monthly, the area is still affordable even though overall rent increased by 13% in just one year.
Bismarck, North Dakota
Another capital city in the mid-west, Bismarck, North Dakota, is much larger than other mid-level, north-mid-western cities. Backing right up to the Missouri River, Bismarck was foundational in establishing many of the farms and other agricultural lands of our great country. Even though rental rates have increased by 3% year-over-year, the average single bedroom still registers just under $1200 monthly, a realistic figure for the next generation of youth entering the market.
Scottsdale, Arizona
Just east of the state capital of Pheonix, Scottsdale, Arizona, is smaller than several of the cities on our list, but what it doesn’t make up for in size, it more than makes up for in famed golf courses and peaceful landscapes. Even with a price tag of roughly $1,800 monthly, Scottsdale looks more and more like a steal (the average rental rate has decreased by 9%).
Overland Park, Kansas
Quietly, Kansas has become the odds-on favorite state to move to, as several analysts have quoted residents stating, “life is just easier here.” Overland Park deserves a good look if you want to wait out the building or buying market, as it boasts more than respectable rental rates (roughly a 2% dip year-over-year) of just under $1,300 monthly.
At the end of the day, the hottest question surrounding consumers still remains unanswered: should you build, buy, or rent? It all depends, but smart money is starting to say renting looks brighter every day.
