MEMPHIS, Tenn. — If you’re looking to buy a house instead of rent, Memphis might be the best city in the country to do it, financially speaking.
In a recent study by real estate listing site Zillow, the Bluff City was tops among major markets with the shortest “break-even” point, after which it makes more sense to buy than rent — 1.32 years.
In other words, if you plan on sticking around Memphis for more than a year and four months, it makes better financial sense to buy your property instead of renting, according to Zillow’s research. Los Angeles had the longest break-even point at three years and eight months.
Memphis also had the lowest median home values — $132,762 in the first quarter of 2018 — and the second-lowest median rent — $1,195 — among major U.S. markets.
It should be noted, however, that Zillow’s numbers for home purchases assumed that the buyer made a 20 percent down payment and a mortgage interest rate for people with credit ratings between 680 and 740.