Story at a glance
- 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.”
Published on Apr 29,2024