While owning a home is always advantageous to renting because it helps build long-term wealth, it's not always economically feasible particularly in markets where consumers spend a substantial amount of income on housing.
Here's a look at a number of high-priced areas, some just outside of major cities, where it costs less to own than rent. The data, from RealtyTrac, shows the counties where homebuyers spent the highest percent of average wages to buy median-priced homes that are still more affordable than a three-bedroom rental during the second quarter of 2016.
Dorchester, S.C.<br>MSA: Charleston-North Charleston, S.C.
Percent of Wages Needed to Own: 36.59%
Percent of Wages Needed to Rent: 42.77%
Adams, Colo.<br>MSA: Denver-Aurora-Lakewood, Colo.
Percent of Wages Needed to Own: 36.89%
Percent of Wages Needed to Rent: 39.83%
Baldwin, Ala.<br>MSA: Daphne-Fairhope-Foley, Ala.
Percent of Wages Needed to Own: 38.08%
Percent of Wages Needed to Rent: 44.62%
Shasta, Calif.<br>MSA: Redding, Calif.
Percent of Wages Needed to Own: 39.02%
Percent of Wages Needed to Rent: 39.02%
Ulster, N.Y.<br>MSA: Kingston, N.Y.
Percent of Wages Needed to Own: 39.03%
Percent of Wages Needed to Rent: 43.32%
Sussex, Del.<br>MSA: Salisbury, Md.-Del.
Percent of Wages Needed to Own: 42.28%
Percent of Wages Needed to Rent: 43.44%
City of Virginia Beach, Va.<br>MSA: Virginia Beach-Norfolk-Newport News, Va.-N.C.
Percent of Wages Needed to Own: 42.30%
Percent of Wages Needed to Rent: 43.41%
San Bernardino, Calif.<br>MSA: Riverside-San Bernardino-Ontario, Calif.
Percent of Wages Needed to Own: 42.32%
Percent of Wages Needed to Rent: 43.45%
Kendall, Ill.<br>MSA: Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
Percent of Wages Needed to Own: 42.95%
Percent of Wages Needed to Rent: 50.78%
Snohomish, Wash.<br>MSA: Seattle-Tacoma-Bellevue, Wash.
Percent of Wages Needed to Own: 45.25%
Percent of Wages Needed to Rent: 48.86%
Ocean, N.J.<br>MSA: New York-Newark-Jersey City, N.Y.-N.J.-Pa.
Percent of Wages Needed to Own: 45.85%
Percent of Wages Needed to Rent: 53.23%
Stafford, Va.<br>MSA: Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
Percent of Wages Needed to Own: 47.31%
Percent of Wages Needed to Rent: 51.54%