In a time when consumers are cutting costs and reevaluating finances, the question of renting versus buying is one many have pondered. LendingTree has compared the nation’s 50 largest metropolitan areas’ median gross rents and median mortgages in order to find that answer. From coast to coast, renting is $607 cheaper than owning on average. Some cities, such as San Jose, California, were found to have the largest spread in costs compared to Providence, Rhode Island where the gap is the smallest. Deciding whether to rent or buy takes more than just analyzing median prices, but careful evaluation of lifestyles and future desires.
Finding a place to live can be challenging — and so can choosing between renting or buying a home. Each option has its advantages and disadvantages, especially in the wake of the COVID-19 pandemic, when many people are struggling to pay their monthly housing costs.
To highlight some of the key differences between renting and owning, LendingTree looked at the median monthly cost to rent and to own a home, for homeowners with and without mortgages, in the nation’s 50 largest metros. In doing so, LendingTree found that renting is usually cheaper than owning until a person has paid off their mortgage.
In addition to comparing costs, LendingTree also looked at who may be better off renting versus buying.
Key findings
If you’re still paying off your mortgage, renting is cheaper than owning in each of the nation’s 50 largest metros. On average, renting is $607 cheaper than owning across the nation’s largest metros.
Advertisement
Related Stories
Economics
Mortgage Rate Declines Could Boost Home Sales Following Months of Low Activity
Encouraging economic news bumped mortgage applications up by 2.6% for the week ending May 3
Affordability
American Families Are Spending a Quarter of Their Income on Mortgage Payments
The average monthly mortgage payment is up more than 9% year-over-year
Affordability
Is Fractional Homeownership Any Kind of Solution for Housing Attainability?
The imbalance between housing supply and demand is spurring some innovative options within the real estate industry