rent buy philadelphia
  • % saved buying: 46%
  • Median home price : $175,000
  • Median rent: $1,600

Home prices and rents are both about 15% higher in the Philadelphia metro area than the typical U.S. housing market. Yet, with mortgage rates still hovering below 4.5% for 30-year fixed loans, buying is a much better deal for most folks.

The city's housing market has been quite stable over the years. Median household income of about $67,000 -- slightly above the national median -- makes homebuying affordable for most working families and helps to keep home prices steady.

First published March 3, 2014: 12:09 PM ET
Source: Trulia
In order to get a more accurate comparison, Trulia estimated sale prices and rents for similar homes in similar neighborhoods, instead of using the average sale price or rental rate. It further calculated the initial total monthly costs of owning and renting, including maintenance, insurance and taxes, as well as future costs of owning and renting, such as price and rent appreciation and inflation. Trulia also included one-time transactional costs, including down payments, sales proceeds and security deposits. It assumes that buyers get a 30-year fixed mortgage with a 4.5% rate and put 20% down and that residents stay in their home for at least seven years.

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