In This Michigan City, It’s Cheaper to Buy Than Rent

Renting a house used to be a good idea for those who were saving up money to buy but didn't want to live in an apartment anymore. Now, even with the housing market super hot, in some cities, rent is so high that buying a home is cheaper.

The monthly cost of rent across the U.S. has increased by more than 10% for the eighth month in a row, according to Realtor.com's recent study. The city where rent has increase the most is the Miami-Fort Lauderdale-West Palm Beach market in Florida.

Rents have gone up so much in some areas of the country that buying a home may actually be cheaper than renting, even after you factor in the down payment. To look into the possibilities, Realtor.com calculated the median rent and buying prices of smaller houses in the 50 largest metropolitan areas in the U.S. All in all, in 26 of the cities, the monthly cost to buy was actually lower than to rent. For the down payment, the study used an average 7%, which is typical for first-time buyers. Down payments, by the way, are the biggest hurdle for first-time homebuyers, and even those purchasing their second or third homes.

What's interesting is that the study found that in one Michigan area, it's cheaper to buy than rent: Detroit-Warren-Dearborn. That area was only behind Birmingham-Hoover, Alabama; Cleveland-Elyria, Ohio; Pittsburgh, Pennsylvania; and St. Louis, Missouri in the study. Of course, while it may be cheaper to buy than rent in these areas, the crew at Realtor.com warns that the price of owning a home is also going up, as are mortgage rates, so it's best to look at the situation on a case-by-case basis. The study states that the median monthly cost of owning a starter home is currently $1,867, which is a whopping 11% higher than it was last year at this time. At this rate, it look like I won't be buying first home time year. I'll wait until the market fall, but who knows when that will be.

If you're curious which cities in Michigan have residents with the highest median household income, we have the list for you. It's surprising how much median household income differs from one city to the next. For example, the highest median household income in Michigan is $108,432.33, and the lowest is $11,667. I guess that just goes to show how diverse Michigan is demographically and how some areas of the state have a higher cost of living.

The crew at Zip Atlas has published an updated list of those median household incomes using a variety of data. The site offers a "structured collection of zip code, area code, city and state demographic, social and economic profiles," according to their official website. They add, "Here you will find employment and unemployment rates, industry statistics, household and personal income reports, property value assessment, housing unit occupancy and vacancy breakdown, mortgage and rent analysis, age, gender, ancestry and racial profiles, education attainment levels and school enrolment among many others." In other words, they've complied a range of data in different areas in one locale, including what Michiganders across the state are bringing home in their paychecks.

According to the Zip Atlas study, none of the top 10 cities in the U.S. with the highest median household income are located in Michigan. No. 1 is Short hills, New Jersey, at $185,466, followed by Purchase, New York and Villa Maria, Pennsylvania. In fact, Michigan doesn't even have one city in the top 100 cities in the U.S. That said, Michigan does have some cities that fall inside the top 200 and 300 cities with the highest tally.

So, which Michigan cities have the highest median household incomes? View the list of cities below all the way up to No. 1, and see if your city made the cut. For more information, visit the Zip Atlas website here.

$65,308.00

$65,667.00

$65,688.00

$66,224.00

$66,500.00

$66,667.00

$66,802.00

$66,875.00

$66,940.00

$66,979.33

$67,360.00

$67,463.00

$67,593.00

$67,670.50

$67,875.00

$68,465.50

$68,783.00

$69,180.00

$70,133.00

$70,282.00

$70,527.33

$71,964.00

$72,828.50

$72,983.00

$73,051.00

$73,230.50

$74,069.50

$74,280.50

$74,377.00

$74,932.00

$75,452.00

$75,671.50

$75,680.33

$76,491.00

$77,274.00

$78,982.00

$79,262.00

$79,579.00

$80,555.00

$81,108.00

$81,864.00

$82,886.00

$83,585.33

$83,902.00

$87,062.00

$87,507.00

$89,508.00

$93,950.67

$97,437.00

$108,432.33