Does your city feel like an ally or an adversary when it comes to owning a home?
To help prospective homeowners tell one from the other, Bankrate used data from a variety of sources to find major metro areas in the US that put significant financial burdens on homeowners, oftentimes without providing a corresponding payoff when it's time to sell.
"When households look to purchase a home, they're going to look at many different factors that relate to the quality of the neighborhood, the amenities associated with the living environment, the expected appreciation of the home or lack thereof over the period of ownership, and many other factors," says Stuart A. Gabriel, director of UCLA's Ziman Center for Real Estate. "But, really, even before they can get to the consideration of any of those factors, the issue of affordability arises."
Ten years after the beginning of a housing crisis that would ruin the financial lives of millions of Americans, one thing is still clear: "Homeownership today has to be undertaken with a lot of caution on the part of households," Gabriel says. "The whole intention of homeownership is that it's sustainable, and if it isn't, it's not a good idea."
Here are Bankrate's rankings of the 10 major cities, based on metro areas as they're defined by the US Census Bureau, where finding that financially sustainable — and ultimately, beneficial — relationship with a new home can be the biggest challenge.
SEE ALSO: Here's what a 4-bedroom home looks like in America's most expensive neighborhoods
DON'T MISS: 10 of the best cities in the US to buy a fixer-upper
10. New Orleans
A great city for music and muffulettas, not such a great city for homeownership. While many parts of the city undoubtedly are vibrant and beautiful, the Crescent City does present some very real challenges for homeowners.
Where New Orleans ranks lower: Due in part to its history of devastating storms, Louisiana has among the highest homeowners insurance rates in the country, topping $1,800 a year on average in the state, according to data from the National Association of Insurance Commissioners. New Orleans homeowners may also find that conducting needed repairs is more expensive in their area — the cost of typical home repairs in the city was the 7th most expensive, according to data from HomeAdvisor.
Where New Orleans ranks higher: All this doesn't mean The Big Easy did badly across the board. Monthly energy costs in New Orleans were the lowest of any major city in the ranking. And it ranks high on affordability, meaning homeownership is in reach for people making an average income.
9. Miami
Gorgeous beaches and a lively nightlife may not be enough to distract homeowners from some outsized costs.
Where Miami ranks lower: Located in a state with the highest property insurance rates in the country, Miami homeowners likely are to be saddled with high premiums (not exactly surprising in a city where most locals can tell you the exact date hurricane season begins). Also, even years after the housing crisis, Miami homeowners still have to deal with a rate of foreclosure actions over the past three years that's the 2nd highest of the cities we surveyed at 1.92%, according to data from Attom Data Solutions.
Add to that property taxes that were among the highest in our ranking, according to Attom's data, and Miami homeowners can expect lots of additional costs to take an alligator-like bite out of their wallets.
Where Miami ranks higher: The news wasn't all bad for Miami. The area has seen home values rise consistently since bottoming out during the housing crisis. Houses have increased at a rate of 11.55% over the past five years, according to data from the National Association of Realtors, giving it the 6th highest price appreciation rate of any city we considered.
8. Boston
Feel free to park your car on Harvard Yard if you want, but buying a home near there might not end well, according to our data.
Where Boston ranks lower: Boston scored in the bottom half of cities we surveyed in six of eight categories, with particularly bad scores for its high average property taxes ($6,012 a year) and energy costs ($228 a month). Bostonians may also not get much in the way of a return on their home buying investment. The metro area ranked 39th out of 50 in home price appreciation over the past five years.
Where Boston ranks higher: On the bright side, Beantown had one of the lowest rates of foreclosure actions of any city in the survey, at just 0.45% of area homes over a three-year period. And buying a home does provide valuable protection against the area's rapidly rising rents, according to data from a National Association of Realtors study.
See the rest of the story at Business Insider