No. 1 Best City to Buy: Minneapolis

Trulia.com

No. 1 Best City to Buy: Minneapolis

Price-to-rent ratio: 8
Avg. cost to rent 2br: $1,699
Avg. cost to buy 2br: $153,843

Why: Homeownership in Minnesota became more affordable as prices fell for more than 40 months before rebounding at the start of this year, according to the Minnesota Area Association of Realtors. The overall median sales price in the Twin Cities has been inching up, but data show that this was driven by sales of bank-owned homes; traditional and short sale prices continue to fall. The rental level has been maintained by the large number of homeowners who lost their properties to foreclosure and are now renting, according to Trulia’s real estate consumer advocate, Tara-Nicholle Nelson.

In photo: 5211 Hiawatha Lane; Price: $154,900; Beds: 2; Baths: 1½; Size: 1,144 sq. ft.