Buying a Home Is Cheaper Than Renting in 22 Major U.S. Cities

Buying a Home Is Cheaper Than Renting in 22 Major U.S. Cities

A recent study from Zillow shows that in 22 of the 50 largest cities in the U.S., paying a mortgage is now cheaper than renting. That’s right! With mortgage rates going down, home prices stabilizing, and more houses available, buying a home is becoming more affordable in many places.

If you've been renting for a while, this might be great news. But if your city isn’t on the list yet, don’t worry. Things are changing fast, and your area could join those cities soon.

It’s important to talk with a local real estate agent to see what’s happening in your neighborhood. Knowing the trends early could help you get ahead. What used to be too expensive might actually be within reach now.

The Zillow study compares rent payments to just the main part of a mortgage (called principal and interest). However, when buying a home, you also need to think about extra costs like taxes, insurance, utilities, and upkeep. But don’t forget—renters also pay for things like renters’ insurance, utilities, and sometimes parking. So, when you do the math, buying could still be the smarter choice.

The key takeaway is that it’s worth checking if you can afford to buy a home now. Mortgage rates have gone down, which could change your budget.

As Orphe Divounguy, Senior Economist at Zillow, says:
“For those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth in the form of home equity — something you lose out on as a renter. With mortgage rates dropping, it’s a great time to see how your affordability has changed and if it makes more sense to buy than rent.”

Whether you live in one of these more affordable cities or not, now is a great time to talk to a real estate agent. With lower rates and more houses on the market, you might be closer to buying a home than you think.

Bottom Line
If you’re tired of renting and want to see if buying a home makes sense for you, let’s crunch the numbers together. It might be the perfect time to make the switch from renting to owning!