Rent vs buy in Ohio
Across its 17 cities of 50,000+, 9 favor renting, 6 favor buying, and 2 are toss-ups, based on today's numbers over 7 years.
Renting or buying in Ohio's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Columbus | Rent | renting wins by $12k | year 11 | $243,122 | $1,471 |
| Akron | Buy | buying wins by $19k | year 4 | $138,865 | $1,176 |
| Newark | Rent | renting wins by $13k | year 11 | $246,884 | $1,420 |
Sources: Zillow Home Value and Observed Rent indexes, plus verdicts from our rent vs buy approach at 20% down over 7 years.
Our Ohio verdict
Over 7 years, renting comes out ahead in 9 of Ohio's 17 largest cities, buying takes 6, and 2 are close calls. What works best for you depends on how home prices compare with local rent. If homes cost far less than the state's typical value of $246k, buying comes out ahead. A typical home in Cleveland costs $115,810, while rent runs $1,359 a month. There, buying wins by $49k, and year 2 is when you break even. Youngstown costs even less at $70,275; break even comes in year 1, and you save $54k.
Near that $246k mark, renting saves you money. A home in Columbus runs $243,122, or you pay $1,471 a month in rent. Renting is ahead by $12k, since break even doesn't come until year 11. In Cincinnati the picture is similar: a $245,743 home leaves renting $19k on top until year 13. In Hamilton, buying a $303,382 home never breaks even within 30 years.
Costs across the state stretch your budget in 2 directions. Property tax comes to 1.31% for you, above the 0.94% rate in the US. However, homeowners insurance costs you $1,092 a year, compared with $1,308 nationally. Home prices have also grown at 7.2% a year for the last 10 years. The median monthly rent of $1,034 comes in below the $1,413 national figure, which helps the 33% of households who rent.
Our take: staying at least 4 years means we'd buy in the cheaper of Ohio's cities. Higher priced markets favor renting for you, unless you're still there past year 11.