10 Cities Where Real Estate Investments Are Total Wastes of Money

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If you rent the property where you live, you undoubtedly have heard this from well-meaning friends and relatives: “You’re throwing your money away on rent. You really should buy a house!”

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But should you? That depends on a variety of factors, starting with where you live.

A study by Today’s Homeowner looked at the cost of buying vs. renting in 97 major cities and found that renting is cheaper than buying in 46 of them – and the money you’d save by renting could be considerable.

For the study, Today’s Homeowner looked at the big picture of the cost of home ownership, including: the average sale price of homes from July 2022, using data from Redfin; property taxes, based on figures from the U.S. Census Bureau’s American Community Survey; average maintenance costs, with estimates from Angi; interest rates, sourced by Freddie Mac; and the price of homeowners insurance premiums with figures from Quadrant Information Services.

When all 97 cities are considered, homeowners will spend an average of $1.30 million over 30 years, while renters will pay an average of $1.26 million.

Nowhere is the comparison between the costs of homeowners vs. renters more stunning than in California, home to seven of the 10 cities where it costs far more to buy than to rent.

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Cities Where It Costs Much More To Own a Home Than To Rent

So what are the 10 cities where your investment in real estate could be considered a waste of money? Here they are.

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Austin, Texas

Cost of Owning: $1,626,126

Cost of Rent (30 years): $1,247,485

Difference Between Paying Rent for 30 Years and Owning: Minus-$378,642

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Anaheim, California

Cost of Owning: $2,122,069

Cost of Rent (30 years): $1,720,907

Difference Between Paying Rent for 30 Years and Owning: Minus-$401,162

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Madison, Wisconsin

Cost of Owning: $1,188,399

Cost of Rent (30 years): $768,155

Difference Between Paying Rent for 30 Years and Owning: Minus-$420,184

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Arlington, Virginia

Cost of Owning: $1,968,567

Cost of Rent (30 years): $1,388,185

Difference Between Paying Rent for 30 Years and Owning: Minus-$580,382

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Long Beach, California

Cost of Owning: $2,029,029

Cost of Rent (30 years): $1,416,371

Difference Between Paying Rent for 30 Years and Owning: Minus-$612,657

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Los Angeles, California

Cost of Owning: $2,523,447

Cost of Rent (30 years): $1,848,268

Difference Between Paying Rent for 30 Years and Owning: Minus-$675,179

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San Francisco, California

Cost of Owning: $3,317,345

Cost of Rent (30 years): $2,414,923

Difference Between Paying Rent for 30 Years and Owning: Minus-$902,422

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San Jose, California

Cost of Owning: $3,420,113

Cost of Rent (30 years): $2,229,374

Difference Between Paying Rent for 30 Years and Owning: Minus-$1,190,738

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Fremont, California

Cost of Owning: $3,413,814

Cost of Rent (30 years): $2,213,767

Difference Between Paying Rent for 30 Years and Owning: Minus-$1,200,047

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Irvine, California

Cost of Owning: $3,380,897

Cost of Rent (30 years): $2,059,319

Difference Between Paying Rent for 30 Years and Owning: Minus-$1,321,578

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Cities Where It Costs Much Less To Own a Home Than To Rent

But where can you turn if you want to own your home, and pay less than rent? The Today’s Homeowner study identified these 10 cities.

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St. Petersburg, Florida

Cost of Owning: $1,121,868

Cost of Rent (30 years): $1,411,382

Difference Between Paying Rent for 30 Years and Owning: $289,514

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Detroit, Michigan

Cost of Owning: $436,767

Cost of Rent (30 years): $738,003

Difference Between Paying Rent for 30 Years and Owning: $301,237

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Cleveland, Ohio

Cost of Owning: $448,720

Cost of Rent (30 years): $763,273

Difference Between Paying Rent for 30 Years and Owning: $314,553

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Tampa, Florida

Cost of Owning: $1,203,436

Cost of Rent (30 years): $1,531,254

Difference Between Paying Rent for 30 Years and Owning: $327,818

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Jersey City, New Jersey

Cost of Owning: $1,853,594

Cost of Rent (30 years): $2,193,182

Difference Between Paying Rent for 30 Years and Owning: $339,588

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New York, New York

Cost of Owning: $2,093,789

Cost of Rent (30 years): $2,483,133

Difference Between Paying Rent for 30 Years and Owning: $389,344

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Baltimore, Maryland

Cost of Owning: $723,868

Cost of Rent (30 years): $1,144,127

Difference Between Paying Rent for 30 Years and Owning: $420,259

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Miami, Florida

Cost of Owning: $1,626,650

Cost of Rent (30 years): $2,059,606

Difference Between Paying Rent for 30 Years and Owning: $432,955

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Chula Vista, California

Cost of Owning: $1,993,324

Cost of Rent (30 years): $2,474,909

Difference Between Paying Rent for 30 Years and Owning: $484,585

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Nashville, Tennessee

Cost of Owning: $1,245,503

Cost of Rent (30 years): $1,917,871

Difference Between Paying Rent for 30 Years and Owning: $672,369

This article originally appeared on GOBankingRates.com: 10 Cities Where Real Estate Investments Are Total Wastes of Money