10 Cities Where Renters Can Finally Afford To Buy a Home in 2025
Owning a home is a key component of the American Dream. Homeownership allows Americans to create stability and, arguably, build wealth. Unfortunately, many renters currently face challenges getting into a house. Rising prices and stubbornly high interest rates have made buying a house more expensive for most.
Compounding the problem is a reduced inventory of available houses, leaving fewer homes for prospective buyers to consider. Although inventory is growing, it's still lagging in much of the country, according to the National Association of REALTORS.
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Finding the right city in which to buy a house is essential for many renters. A recent study from Rocket Moving highlights the top cities for renters to purchase a home. The study looks at the average home price, median down payment, 15-year mortgage rate, homeownership rate and mortgage approval rate to identify the top ten cities where renters can afford to buy a house.
Average home price: $226,800
Median down payment: $26,500
15-year mortgage rate: 4.84%
Homeownership rate: 71.8%
Mortgage approval rate: 68.7%
Composite score: 99.4
Average home price: $346,700
Median down payment: $38,500
15-year mortgage rate: 5%
Homeownership rate: 74%
Mortgage approval rate: 65.8%
Composite score: 96.9
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Average home price: $245,500
Median down payment: $17,500
15-year mortgage rate: 4.94%
Homeownership rate: 73.3%
Mortgage approval rate: 60.9%
Composite score: 92.6
Average home price: $168,200
Median down payment: $6,600
15-year mortgage rate: 5%
Homeownership rate: 77%
Mortgage approval rate: 54%
Composite score: 89.4
Average home price: $301,800
Median down payment: $24,400
15-year mortgage rate: 4.99%
Homeownership rate: 73%
Mortgage approval rate: 53.4%
Composite score: 88.0
Average home price: $268,600
Median down payment: $24,500
15-year mortgage rate: 4.96%
Homeownership rate: 65.7%
Mortgage approval rate: 68.8%
Composite score: 86.0
Average home price: $228,300
Median down payment: $8,800
15-year mortgage rate: 4.91%
Homeownership rate: 73.8%
Mortgage approval rate: 53.5%
Composite score: 83.1
Average home price: $271,900
Median down payment: $25,400
15-year mortgage rate: 4.86%
Homeownership rate: 71%
Mortgage approval rate: 61.4%
Composite score: 82.9
Average home price: $249,900
Median down payment: $23,200
15-year mortgage rate: 4.86%
Homeownership rate: 74.1%
Mortgage approval rate: 61.3%
Composite score: 81.8
Average home price: $252,400
Median down payment: $17,800
15-year mortgage rate: 4.9%
Homeownership rate: 68.7%
Mortgage approval rate: 60%
Composite score: 80.7
Transitioning from renting to buying a house is challenging in the current economy, but it is achievable.
'A lot of renters assume buying a home is out of reach, but that depends entirely on where you're looking,' said Christopher Vardanyan, CEO at Rocket Moving. 'In some cities, the difference between renting and owning comes down to a few thousand dollars and slightly better loan odds. That's a much shorter leap than people think, especially when you compare it to cities where both the down payment and mortgage approval chances are working against you.'
With planning and an opportunistic eye, buying a house is possible.
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This article originally appeared on GOBankingRates.com: 10 Cities Where Renters Can Finally Afford To Buy a Home in 2025
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