Saint Louis is currently a market where buying is definitely more advantageous than renting.

The median rent for 2-3 bedroom homes is around $1,250, while the median home price is about $180,000. This is clear. It is among the lower home prices in major cities in the Midwest.

Why is it so low? The answer lies in population stagnation and urban decline. However, recent investments in biotech and logistics have led to a trend where some western suburban areas are seeing properties sell quickly.

Calculating the Price-to-Rent Ratio, dividing the annual rent of $15,000 by the median home price of $180,000 gives us 12.0. A ratio of 15 or lower is interpreted as favorable for buying, and 12.0 clearly meets that criterion.

Let's also look at the monthly payment. If you put down a 20% down payment of $36,000 and calculate with a 30-year fixed rate of 6.75%, the principal and interest would be $934 per month. Adding property taxes and insurance, the total monthly burden comes to $1,211. Compared to the rent of $1,250, this means you would actually be spending $39 less each month. At this point, there seems to be little reason to delay a purchase.

If the $36,000 down payment were invested elsewhere, you could expect an annual return of $2,200 to $2,500 based on a 6-7% return. However, considering the lower mortgage payment and principal repayment compared to rent, buying still appears to be the better option.

Compared to nearby areas, Saint Louis shows lower prices than Kansas City and stands out as the most favorable market for buying within Missouri. It also shows a significantly lower Price-to-Rent Ratio compared to Omaha.

However, there are conditions. If you plan to move out of state within 1-2 years, short-term buying could result in losses due to closing costs and selling fees. If you are certain about living there for more than three years, it makes sense to take advantage of the current low Price-to-Rent Ratio.

Additionally, it's important to check the property tax reassessment cycle. In Missouri, property tax reassessments occur every two years, and areas in the western suburbs that have seen rising sales prices may see tax increases in the next reassessment. Even if you decide to buy now taking advantage of the low Price-to-Rent Ratio, it is advisable to factor in the potential for future property tax increases in your budget.

From the perspective of Korean households, Saint Louis is a market with a low entry barrier for those settling in the U.S. I recommend checking the recent prices in good school districts in western suburbs like Chesterfield or Creve Coeur individually, and comparing property tax rates during the mortgage pre-approval stage before making a decision.