Throughout the U.S., buying a home is roughly 25% more expensive than renting one, but in just four metro areas, ownership is cheaper, according to Insider. In Detroit, Philadelphia, Cleveland, and Houston, monthly mortgage costs are lower than monthly rental costs by as much as 24%.
In contrast, it’s twice as expensive to own than to rent in California cities such as San Jose, San Francisco, and Oakland.
In Detroit, the typical home is 24% less expensive to buy than rent — the largest percentage discount among the 50 most populous metros, Redfin said in a report Friday. The median mortgage payment for homebuyers there is $1,296, while the average estimated rent hovers at $1,697.
Philadelphia offers a 7% discount, and it's followed by Cleveland (4% discount) and then Houston (1% discount).
Advertisement
Related Stories
Affordability
The Disappearing Act That Is Middle-Income Housing
An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it
Off-Site Construction
Utah Passes Bill to Regulate Modular Construction at the State Level
Goals for housing innovation and affordability meet in the Utah's passage of a new bill that establishes a statewide modular construction program
Affordability
Affordability Improves, but the Average Worker Still Struggles to Afford a Home
Homeownership around the U.S. continues to require historically large portions of worker wages, a new housing-affordability report finds