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New Orleans ranks as a city that’s cheaper to buy than rent

Why pay more if you can pay less?

While New Orleans house prices seem to be on a steady rise, a study by SmartAsset supports that New Orleans is one of 10 cities where it is cheaper to buy than rent.

SmartAsset gathered mortgage and rent data from over 100 metro cities in the United States. The study only considers an ideal scenario of a 4.5 percent mortgage rate, closing cost of $2,000, and a $20,000 down payment.

In New Orleans, the average monthly mortgage payment is $648, compared to the average monthly rent of $1,276 (which is near the average of a one bedroom unit). SmartAsset estimates the average home price in New Orleans is $235,127. The data suggest that it would take 1.59 years to see the cost of buying as cheaper than renting.

Coming in in No. 8 is Baton Rouge, Louisiana, with the average mortgage of $561.

The top three cities on the list are Greenville, South Carolina; Louisville, Kentucky; and Little Rock, Arkansas.

This past month, New Orleans ranked No. 20 in the nation with the city with the most expensive rent.

In a global study by Neighborhood X, the most inexpensive neighborhoods to buy a house, in considering price per square foot, are the Lower Ninth Ward, 7th Ward and Gentilly. The most expensive include the French Quarter, Garden District, and Touro.