Renting better than buying in big cities: Analysis

It is less expensive to pay monthly rent than it is mortgage payments in 50 of the largest metro areas in the U.S.

by Alejandra O’Connell-Domenech | Apr. 29, 2024

Red shoes from above on the white arrows,dilemmas concept buy or rent

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Renting a typical home is now cheaper than buying one in all 50 of the largest U.S. metros in 2024, according to a new Bankrate study.

The Bankrate study looks at the typical monthly mortgage payments and the typical month rents for all homes in the 50 most populated U.S. metros.

Analysts found that the typical monthly mortgage payment in one of these cities for a median-priced home is about $2,703, while typical monthly rent is $1,979.

Renting a home is more cost-effecting than buying in most major cities in the United States, according to a new Bankrate analysis.

Housing in general is expensive in the U.S., and rents are higher than a year ago in 47 of the 50 largest metro areas, according to Zillow data.

But it is still cheaper to rent than it is to buy a home in 50 of the country’s largest cities, according to the analysis.

A typical home costs almost 37 percent more to buy than to rent on a monthly basis.

The typical monthly cost of owning a home is almost 37 percent higher than the typical monthly cost of renting, the analysis adds.

Mortgage payments for a median-priced home of about $412,700 is $2,703 a month while typical rent is $1,979 a month.

“For those weighting whether they should rent or buy right now, all signs point to renting as the most cost-effective option in most major U.S. cities,” Bankrate Analyst Alex Gailey said in a statement.

“The combination of high home prices, elevated mortgage rates and low inventory creates a strong headwind for aspiring homeowners.”

Gailey added that Americans looking to buy a home need to make larger down payments or set aside larger portions of their monthly income to make mortgage payments compared to “a few years ago.”