Renting is Cheaper Than Owning in All Major U.S. Cities [New LendingTree Report]

Choosing between renting and buying a home can be challenging, especially in competitive markets. LendingTree analyzed the latest housing data to compare monthly rent and housing costs for homes with a mortgage in the 100 largest U.S. metros. In each, median rent costs are lower than median housing costs for those with a mortgage. If you’re paying off a mortgage, renting is likely cheaper than owning in each of the nation’s largest metros. The difference between median gross rent ($1,406) and median housing costs ($1,904) for homes with a mortgage is $498 a month. The dollar difference between renting and owning a home with a mortgage is widest in San Francisco, Bridgeport, Conn., and New York. The difference between median monthly gross rent and median monthly housing costs for homes with a mortgage in these metros is $1,414, $1,367 and $1,340, respectively. Phoenix, Orlando, and Palm Bay, FL, have the narrowest gaps between renting and owning a home with a mortgage. In these metros, median gross rent costs are $90, $127 and $128 less monthly than median housing costs for homes with a mortgage. Six of the 10 metros with the narrowest gaps were in Florida. You can check out the full report and city rankings here: https://www.lendingtree.com/home/mortgage/comparing-rent-vs-owning-a-home-in-nations-largest-metros/ LendingTree's Chief Consumer Finance Analyst, Matt Schulz, had this to say: "This isn't just happening in the giant coastal cities. We're seeing it in Omaha, Wichita, Toledo, Oklahoma City and dozens of other areas from coast to coast. In almost half of the nation's biggest cities, it is at least $500 cheaper each month to rent than to own. In some cases, that difference is $1,000 or more. That's real money that can go to other major financial goals like building an emergency fund, investing for retirement, saving for college or even starting a small business."