Best Places To Buy Currently - Looking for The 1% Rule ? Good Luck, These Might Be

[Ken M.]

Cities where buying is better than renting

Out of the 343 cities analyzed, 32 locations were found to be more affordable for buyers than renters. These locations are primarily concentrated in Southern states like Alabama, Georgia, and Texas, as well as Rust Belt regions like Ohio and Michigan. Not CA, NY or IL ;-)

A 2025 Rental Affordability Report, released in February by the real estate analytics firm ATTOM, showed that both owning and renting remain a challenge for average American workers, eating up between 25 to 60% of their wages.

Just some places to look for cash flowing properties

1. (Premium/discount of buying vs. renting)
   
2. Detroit, Michigan: -60.1% 
3. Jackson, Mississippi: -59.8%
4. Cleveland, Ohio: -39.3%
5. Birmingham, Alabama: -36.3%
6. Montgomery, Alabama: -31.1%
7. Baltimore, Maryland: -23.6%
8. Memphis, Tennessee: -20.8%
9. Shreveport, Louisiana: -20.2%
10. Toledo, Ohio: -19.4%
11. Akron, Ohio: -16.9%
12. Philadelphia, Pennsylvania: -16.4%
13. Columbus, Georgia: -13.2%
14. Augusta, Georgia: -13%
15. Peoria, Illinois: -12.6%
16. Beaumont, Texas: -12.5%
17. Tuscaloosa, Alabama: -12.3%
18. Hartford, Connecticut: -12.2%
19. Dayton, Ohio: -10.3%
20. St. Louis, Missouri: -10.2%
21. Brownsville, Texas: -9.1%
22. Macon-Bill County, Georgia: -8.6%
23. New Orleans, Louisiana: -7.8%
24. Mobile, Alabama: -7.5%
25. South Bend, Indiana: -7.4%
26. Waco, Texas: -7%
27. Dearborn, Michigan: -4.8%
28. Syracuse, New York: -4.7%
29. Columbia, South Carolina: -3.9%
30. Lansing, Michigan: -2.8%
31. Pompano Beach, Florida: -2.2%
32. Pittsburgh, Pennsylvania: -1.6%
33. Lehigh Acres, Florida: -1.2%

[Dan H.]

I suspect neighborhoodScout will show each of these locations to have below average appreciation for this century (less than 5/10 as reflected by NeighborhoodScout since the year 2000).   The more relevant question is how many of these locations have inflation for this century below the inflation rate (national CPI) meaning the values have decline in inflation adjusted dollars.

I have posted many times indicating there is historically an inverse relationship between initial cash flow and the cash flow over a long hold meaning the markets with the best initial cash flow often have the worse historical long term cash flow.

These markets usually are best left for local RE investors.

Good luck