The Census Bureau has released the latest estimates from the American Community Survey for all cities in the country with a population of 60,000 or more with sufficient data to estimate the price to rent ratio. We have crunched the numbers and the rankings are in. See the 608 places with the lowest price to rent ratio below, and the highest price to rent ratio places at the bottom of the list.
The price to rent ratio is the median home value divided by the median annual rent. At its most basic level, the ratio is a benchmark for understanding whether it is better to rent or buy in an area. When home prices rise significantly faster than the local rents, the ratio will rise - indicating a possible housing bubble where it may be better to rent. Anything under 15 indicates that it is likely more affordable to buy, and areas over 20 are likely better to rent.
The national price to rent ratio from the latest estimates is 20.9 and has risen 2.8% from 20.3.
This year saw several big changes. Reading, PA rose from #9 to #5, Gary, IN fell from #5 to #7, Rochester, NY rose from #11 to #8, Dayton, OH rose from #13 to #9, and Cleveland, OH fell from #7 to #10.