According to Forbes, it is only $60 cheaper per month to rent in Minneapolis than it is to own a home, making it one of the worst cities in the nation for renters.
Minneapolis residents looking to buy a home in the near future and end their days as renters may now have even more of an incentive to do so.
According to Forbes, Minneapolis is the eighth-worst city for renters with an average rent cost of $889 per month and a 1.8 percent cost increase from last year.
It is just $60 cheaper per month to rent in Minneapolis than it is to own a home, and the city has a relatively low rental vacancy rate of 3.2 percent—well below the national average of 9.7 percent.
High vacancy rates mean that there are more empty units and more choices, which usually result in better prices, according to Forbes.
New Haven, Connecticut, is the worst city in which to rent, according to Forbes. The publication said that rent in the city—which is home to Yale University—is up by an average of $57 over last year to $1,504 per month, exceeded only by notoriously pricey markets like New York City, San Francisco, and Boston.
Forbes ranked Tucson, Arizona, as the best city for renters. The average monthly rent is only $9 more than it was in 2010, and the vacancy rate is 9.4 percent, slightly below the national average. Monthly, it’s $277 cheaper to rent in Tucson than it is to own a home there.
To compile the list of the worst cities for renters, Forbes teamed with Marcus and Millichap, an Encino, California-based real estate investment firm. The largest 44 cities in the United States were analyzed based on four criteria: average rent in the first quarter, year-over-year change in rent, vacancy rates, and the cost of renting versus buying.
Here are the complete lists of the worst and best cities for renters based on Forbes’ analysis:
- 1. Tuscon, Arizona
- 2. Jacksonville, Florida
- 3. Phoenix
- 4. Columbus, Ohio
- 5. Kansas City, Missouri
- 6. Las Vegas
- 7. St. Louis
- 8. Houston
- 9. San Antonio
- 10. Charlotte, North Carolina
- 1. New Haven, Connecticut
- 2. New York, borough of Manhattan
- 3. San Jose, California
- 4. Boston
- 5. San Francisco
- 6. Miami
- 7. Washington, D.C.
- 8. Minneapolis
- 9. Philadelphia
- 10. Portland, Oregon
Click here to read more about these cities at Forbes.com.