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
17 cool gadgets that tease the future Smart telescopes, surveillance for dogs, an electric roadster and more from CES 2018. More
These 12 airplane beds let you really sleep on a flight For the price of a premium class ticket, you may just get a space that's comfortable, private, and quiet enough to ensure a good rest. More
CES 2018 kicks off with oddball gadgets The biggest tech show of the year opened with a collection of quirky gadgets. More

Special Offer