Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

10 cities: Where to buy - and where to rent

In calculating whether it's better to buy or rent, economist use a rule of thumb: If the home price is 15 times higher than the annual rent for a similar property, it is better to rent.

1 of 10
BACKNEXT
1. Minneapolis: Buy
Minneapolis: Buy
Average list price: $154,000
Average annual rent: $20,400
Price to rent ratio: 7.5

In the Minneapolis metro area, the house price plunge was dramatic,by Midwestern standards. Prices fell by 32% from their late-2006 highs, according to data from the National Association of Home Builders and Wells Fargo Bank. That has made buying a bargain.

Steady population growth had buoyed the real estate market until the economy started to sink. Unemployment, though, in the metro area is still well below the national average, just 7.8%.

The quality of life here is high; there are many cultural institutions, which have drawn in a well educated populace. There are attractions for Joe Sixpack as well, with franchises in all four major professional sports and easy access to the lakes and forests Minnesota is noted for.
NEXT: Omaha Neb.: Rent
Last updated June 14 2010: 2:22 PM ET
  • Find Homes for sale
    Real estate and homes for sale on Trulia

  • Property Type
  • Find a home in:
  • New York | Atlanta | Chicago | Los Angeles
  • Washington D.C | Houston | Philadelphia | More options
More Galleries
'Spotlight' is just the latest edition of newspaper movies Here's a list of the best newspaper movies. More
Most valuable car collection ever auctioned In total, the 'Pinnacle Portfolio' is the most valuable group of cars from one collection ever sold in a single auction. More
This is how far robots have come since the 1930s Are robots catching up to humans? Yes. Should we be scared? Find out! More

Special Offer