One of the biggest dilemmas for those considering a move to Savannah these days is whether to buy a home or just rent.

A few years ago, it would have been an easy decision to lean towards buying, but now with high mortgage rates, it's necessary to crunch some numbers.

If you're looking to rent a 2-3 bedroom place in Savannah, you can expect to pay around $1,750 a month.

Considering that it was in the $1,300 range five years ago, rental prices have certainly increased.

The same goes for home prices. If we estimate the median home price at about $340,000, that's a significant jump from the $260,000 level five years ago.

So, let's calculate which option is more advantageous: renting or buying.

Comparing a $340,000 home to a $1,750 monthly rent gives us a Price-to-Rent Ratio of about 16.2.

Generally, if the ratio is below 15, buying is a bit more favorable, and if it goes above 20, renting becomes more appealing. A ratio of 16.2 is right in the middle.

In simple terms, it's not a market where you must buy a home, nor is it one where you must rent.

The issue now is the interest rates. Let's say you put down 20%, which is $68,000, on a $340,000 home and borrow $272,000 at a fixed rate of 6.75% for 30 years. The principal and interest alone would be about $1,764 a month. When you add property taxes and homeowners insurance, your actual housing cost could be around $2,100 a month.

Compared to the $1,750 rent, that's over $300 more each month. Plus, you have to consider the initial $68,000 down payment. If you invest that money and assume an average annual return of about 7%, you'd earn roughly $4,760 a year, or nearly $400 a month.

So, simply thinking, "I'd rather pay $1,750 in rent than pay a mortgage on a home" changes the calculations a bit.

When you factor in the opportunity cost of the down payment, renting might seem about $700 cheaper in the short term. Of course, the portion of the mortgage that goes towards principal builds your equity, so it can't all be viewed as an expense.

Ultimately, what matters is how long you plan to stay.

If you've moved to Savannah for work and might relocate to another city in 2-3 years, I don't think there's any rush to buy a home. There are costs associated with buying and selling a home, and you can't predict how home prices will move over a few years. In such cases, renting while keeping cash on hand is more convenient.

On the other hand, if you plan to stay for 5, 10 years or more and your kids' schooling is settled, the story changes. Even if it means paying a few hundred dollars more each month, paying off a mortgage and building your own home makes more sense in the long run.

Savannah has steady real estate demand due to tourism and its historic downtown and coastal areas. That said, it's not a market where you'll be in big trouble if you don't buy a home right now.

Ultimately, in Savannah, you need to consider your plans before the home prices. If you're unsure whether you'll be here in three years, rent; if you're seriously thinking about settling down for the long term, consider buying. Based on the numbers now, that seems to be the most realistic judgment.