5 Southern Cities Where Owning A Home Is Cheaper Than Renting

As a renter, it's normal to wonder whether you're paying too much for rent, especially if you recently received a notice that your cost is going to increase. Rental prices fluctuate significantly in different locations because of things like supply and demand, population density, and local amenities.

Renting remains more affordable than buying a home in many areas, but there are locations where purchasing a house is immediately cheaper, offering a financial advantage. When you also consider that purchasing a home allows you to accumulate equity, finding a house to purchase in these locations seems like a pretty smart financial choice. Although renting and owning could both help you build wealth, depending on the circumstances, if you live in an area where renting is clearly more expensive than owning, it makes sense to look for a home to purchase.

Determining whether you live in an area where rental prices are higher than buying can be difficult to do on your own. Consumer Affairs recently put together a list of southern American cities and found some where the median rent in 2025 was higher than the average 2025 monthly home payment. Alexandria, Louisiana; Florence, South Carolina; Enid, Oklahoma; Sumter, South Carolina; and Beckley, West Virginia, all are cities near the top of the list where you may want to consider buying a house instead of leasing a home or apartment to gain a financial advantage.

Alexandria, Louisiana, has an estimated population of 43,100, according to the U.S. Census Bureau, and ranks 10th in population in the state of Louisiana. Late in 2025, Realtor.com listed the median home listing price in the city at about $173,000, a drop from a peak of $199,000 in early 2024. This drop helps to make local homes more affordable. U.S. News lists the median home value in Alexandria at $166,300, which is significantly lower than the national average home value of $370,500.

Consumer Affairs lists the total monthly home payment for an average Alexandria homebuyer at $1,186 in 2025. Consumer Affairs lists the average rental cost at $1,300 a month, representing an 8.8% premium for the cost of renting compared to owning a home in Alexandria. Zillow says the average cost to rent in Alexandria is even higher at $1,365.

Housing prices recently dropped across Louisiana, and it is the U.S. state with the highest rate of underwater mortgages, according to a late 2025 report about mortgages from Intercontinental Exchange. However, some real estate experts believe the state's housing market could improve in 2026. With local home prices having dropped recently, though, it can be a good time to buy because the purchase prices become affordable for people who have financial stability and are prepared to make an offer.

According to Redfin, South Carolina ranks in the middle of the list of all 50 states for the median sale price of housing. The major metro areas of Charleston, Greenville, and Columbia often have prices surpassing $350,000. In areas outside the metros, though, such as Florence, South Carolina, average home prices are between $200,000 and $250,000. This helps make Florence, South Carolina, a place that Consumer Affairs says is cheaper to buy a house than rent. The U.S. Census Bureau lists Florence's estimated population at 43,900, which ranks as the 13th largest city in the state.

According to Realtor.com, the median home listing price in Florence in late 2025 is about $255,000, a slight drop from about $264,000 in mid-2025. Consumer Affairs says the total monthly home payment in 2025 in Florence was $1,402, while median rent was $1,523, creating a 7.9% financial advantage for those owning a home. As an added advantage to buying a home in South Carolina, the state's effective tax rate ranks 47th among all states, according to Consumer Affairs.

It's worth noting that rental prices are variable in Florence. Although Consumer Affairs lists the median rent in 2025 in Florence at $1,523, Zillow lists the average Florence rent at $1,213. Trulia lists the cost to rent a house at $1,600. Because of the volatility, some people who have a lower-than-average rental cost might not see a financial premium with owning a home here instead of renting.

Affordable housing is part of the draw of Enid, Oklahoma. Throughout Oklahoma, the median list price for homes is $295,000, according to Redfin, but the median home listing price in Enid was $179,900 in late September 2025, according to Realtor.com. This is down from a median list price of $210,000 in Enid in mid-2024.

According to Consumer Affairs, the total monthly home payment in Enid in 2025 was $1,174, lower than Consumer Affairs' estimated median cost for Enid renters of $1,218, resulting in a 3.6% financial premium for homeowners compared to renters. However, estimates of median rental prices in Enid vary. Payscale estimates the city's median rent at $1,206, while Zillow estimates average rent at $1,009 in Enid. If you have a rental lease with a lower-than-average price, you might not receive a financial premium by purchasing a home here.

Enid's estimated population is 50,500, according to the U.S. Census Bureau. It ranks as the 10th largest city in Oklahoma and is northwest of the state's largest city, Oklahoma City. Vance Air Force Base is near the city, and petroleum, agriculture, and livestock are other important markets in the area.

Some housing markets can experience a lot of volatility, making it tough for renters to decide when to come into the market. Sumter, South Carolina, doesn't fit that definition, though, as it features relatively steady housing prices over the past few years. According to Realtor.com, Sumter's median listing home price was $250,000 in late 2025, only a little higher than its median price of $248,900 in early 2024. Things like gradual price growth can give homebuyers a chance to receive a good value.

Consumer Affairs estimates that homebuyers would receive a 2.4% financial premium to renters in the Sumter market. It estimates the total monthly home payment in 2025 in Sumter at $1,405, while the local median rent price is $1,439. Zillow estimates the average rent in Sumter at $1,350, meaning not every renter will receive a financial premium by buying a house right now. Airbtics estimates the Sumter median rent price at $1.372. Zillow's statistics show that the local rental market has quite a bit of volatility. It says the average rental price ranged from about $1,200 in January 2025 to $1,395 in August 2025.

Sumter is the 11th largest city in South Carolina with an estimated population of 42,900, according to the U.S. Census Bureau. The city is well-known for its historical Civil War sites, including Fort Sumter, where the first shots were fired during the Civil War.

Inexpensive housing is one of the benefits of living in Beckley, West Virginia, as its median home value is $156,600, which is well below the national average value of a home at $370,500, according to U.S. News. The median home price listing in Beckley in late 2025 is $139,900, according to Realtor.com, which is lower than median price of $159,900 in early 2024. The recent drop in median prices gives renters more homes they could potentially afford to buy.

According to Consumer Affairs, the total 2025 monthly home payment in Beckley is $1,070, while Consumer Affairs lists local median rent at $1,071, giving homeowners a 0.1% financial premium compared to renters. Because the estimated cost of home payments and renting have such a small difference, Beckley residents who have a low-cost rental lease might not see a financial advantage by purchasing a house. Zillow estimates the average rent in Beckley at $1,000 per month, while Trulia estimates the average rent for a house at $1,100.

Beckley's estimated population is 16,500, according to the U.S. Census Bureau, which makes it the ninth-largest city in West Virginia. Beckley is in southern West Virginia, serving as a regional hub for shopping in the mostly rural area. It's just southwest of New River Gorge National Park & Preserve, providing year-round outdoor activities for residents.