The One Louisiana City Where It’s Cheaper to Buy Than Rent a Home

Even though housing costs keep rising, renting remains the most affordable option in almost all U.S. markets. However, there is one Louisiana city where that's not the case.

Which Louisiana city is it cheaper to own than rent?

Alexandria, Louisiana, is one of only five cities in the country where buying is cheaper than renting. And the central Louisiana city tops the list.

Consumer Affairs compared median rent and monthly mortgage payments across nearly 400 metro areas. Nationwide, the typical home costs 45% more to buy than rent.

However, in Alexandria, it's the other way around. It's nearly 9% cheaper to buy.

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The cities in America where it's cheaper to buy than rent are...

There are only five cities where buying a home is cheaper than renting. Here's the list:

1. Alexandria, LA
2. Florence, SC
3. Enid, OK
4. Sumter, SC
5. Beckley, WV

Buying a home in Alexandria costs 8.8% less than renting. The average home payment there is $1,186, compared to the $1,300 median rent.

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Why is it so affordable to own a home in Alexandria, Louisiana?

Affordable home prices and low property taxes are key factors as to why it's cheaper to own than rent in Alexandria.

The average home value in Alexandria is about $130,000, or just over a third of the national average of $361,263.

Louisiana also has some of the lowest property taxes in the nation, with a 0.55% effective rate.

Buying is not an affordable option nationwide, though.

Buying a home is 45% more expensive than renting nationwide. That's a big shift from just ten years ago. In 2015, monthly costs were nearly identical.

Homebuying won't get any easier anytime soon, according to the experts.

“Factors like the trade war…could lead to higher mortgage rates and increased construction costs, thereby limiting homebuying opportunities," said Lawrence Yun, chief economist at the National Association of Realtors.

To read the complete Consumer Affairs report on the cities where it's cheaper to buy than rent, click here.