Homebuyers looking for a good deal have turned their attention to the Midwest. According to a recent report by Realtor.com , three out of the top ten hottest housing markets are located in this region. In some cases, renting may be cheaper, but not everywhere.
Explore More: 20 Best Cities Where You Can Buy a House for Under $100K
Find Out: 7 Reasons You Must Speak To a Financial Advisor Before Spending $50,000 or More
Home prices have increased by more than 50% since the end of 2019, according to HousingWire. At the same time, an analysis by Zillow and StreetEasy showed that rents jumped by over 30% nationwide between 2019 and 2023. As of July 2024, the median existing-home sales price was $422,600, per data from the National Association of Realtors (NAR); however, the median home price in the Midwest was $321,300 – about $100,000 cheaper.
A separate report by Realtor.com also revealed that renting can save you an extra $1,000 per month compared with buying a home. Still, you could potentially save thousands of dollars per year by purchasing a home instead in select Midwestern housing markets.