According to conventional financial planning wisdom, it’s more cost-efficient to own a home than to rent one. But with high home prices across the U.S., is that still the case?
To find out the more affordable housing option, GOBankingRates analyzed the average price of renting versus owning a home in all 50 states, plus the District of Columbia. The study found that in the majority of states, it is actually cheaper to rent than to buy — though this goes by monthly cost and does not take into account the equity you build through homeownership.
So, while it may be more beneficial in the long term to own a home, in the short term it is actually cheaper to rent in many places in the U.S. Here’s a cost breakdown of renting versus owning in every state.
Alabama
- Average Home Value: $197,182.31
- Average Monthly Rent: $1,481.03
- Average Monthly Mortgage: $1,240.85
- Cheaper Option: Owning
Alaska
- Average Home Value: $330,682.23
- Average Monthly Rent: $1,709.93
- Average Monthly Mortgage: $2,080.96
- Cheaper Option: Renting
Arizona
- Average Home Value: $387,091.18
- Average Monthly Rent: $2,295.38
- Average Monthly Mortgage: $2,435.94
- Cheaper Option: Renting
Arkansas
- Average Home Value: $174,454.61
- Average Monthly Rent: $1,290.56
- Average Monthly Mortgage: $1,097.83
- Cheaper Option: Owning
California
- Average Home Value: $792,377.47
- Average Monthly Rent: $2,937.75
- Average Monthly Mortgage: $4,986.38
- Cheaper Option: Renting
Colorado
- Average Home Value: $599,580.84
- Average Monthly Rent: $2,548.05
- Average Monthly Mortgage: $3,773.12
- Cheaper Option: Renting
Connecticut
- Average Home Value: $499,878.84
- Average Monthly Rent: $2,240.56
- Average Monthly Mortgage: $2,831.06
- Cheaper Option: Renting
Delaware
- Average Home Value: $413,557.83
- Average Monthly Rent: $1,892.38
- Average Monthly Mortgage: $2,602.49
- Cheaper Option: Renting
District of Columbia
- Average Home Value: $715,350.97
- Average Monthly Rent: $2,447.11
- Average Monthly Mortgage: $4,501.65
- Cheaper Option: Renting
Florida
- Average Home Value: $579,698.00
- Average Monthly Rent: $2,464.03
- Average Monthly Mortgage: $3,648
- Cheaper Option: Renting
Georgia
- Average Home Value: $247,686.31
- Average Monthly Rent: $1,824.19
- Average Monthly Mortgage: $1,558.67
- Cheaper Option: Owning
Hawaii
- Average Home Value: $934,097.87
- Average Monthly Rent: $2,712.95
- Average Monthly Mortgage: $5,878.21
- Cheaper Option: Renting
Idaho
- Average Home Value: $455,282.52
- Average Monthly Rent: $1,714.24
- Average Monthly Mortgage: $2,865.06
- Cheaper Option: Renting
Illinois
- Average Home Value: $204,558.70
- Average Monthly Rent: $1,676.93
- Average Monthly Mortgage: $1,287.27
- Cheaper Option: Owning
Indiana
- Average Home Value: $212,932.99
- Average Monthly Rent: $1,341.29
- Average Monthly Mortgage: $1,339.97
- Cheaper Option: Owning
Iowa
- Average Home Value: $192,227.06
- Average Monthly Rent: $1,170.67
- Average Monthly Mortgage: $1,209.99
- Cheaper Option: Renting
Kansas
- Average Home Value: $167,193.04
- Average Monthly Rent: $1,240.47
- Average Monthly Mortgage: $1,052.13
- Cheaper Option: Owning
Kentucky
- Average Home Value: $157,695.35
- Average Monthly Rent: $1,305.90
- Average Monthly Mortgage: $992.37
- Cheaper Option: Owning
Louisiana
- Average Home Value: $177,175.53
- Average Monthly Rent: $1,371.23
- Average Monthly Mortgage: $1,114.95
- Cheaper Option: Owning
Maine
- Average Home Value: $336,176.48
- Average Monthly Rent: $2,119.46
- Average Monthly Mortgage: $2,115.54
- Cheaper Option: Owning
Maryland
- Average Home Value: $441,073.23
- Average Monthly Rent: $1,993.99
- Average Monthly Mortgage: $2,775.64
- Cheaper Option: Renting
Massachusetts
- Average Home Value: $627,101.47
- Average Monthly Rent: $2,551.18
- Average Monthly Mortgage: $3,946.31
- Cheaper Option: Renting
Michigan
- Average Home Value: $241,988.81
- Average Monthly Rent: $1,478.15
- Average Monthly Mortgage: $1,522.82
- Cheaper Option: Renting
Minnesota
- Average Home Value: $294,745.34
- Average Monthly Rent: $1,562.38
- Average Monthly Mortgage: $1,854.81
- Cheaper Option: Renting
Mississippi
- Average Home Value: $148,034.05
- Average Monthly Rent: $1,432.28
- Average Monthly Mortgage: $931.57
- Cheaper Option: Owning
Missouri
- Average Home Value: $224,190.56
- Average Monthly Rent: $1,363.55
- Average Monthly Mortgage: $1,410.82
- Cheaper Option: Renting
Montana
- Average Home Value: $406,553.60
- Average Monthly Rent: $1,685.60
- Average Monthly Mortgage: $2,558.41
- Cheaper Option: Renting
Nebraska
- Average Home Value: $208,843.08
- Average Monthly Rent: $1,280.24
- Average Monthly Mortgage: $1,314.24
- Cheaper Option: Renting
Nevada
- Average Home Value: $449,802.73
- Average Monthly Rent: $1,823.90
- Average Monthly Mortgage: $2,830.58
- Cheaper Option: Renting
New Hampshire
- Average Home Value: $440,917.44
- Average Monthly Rent: $2,128.70
- Average Monthly Mortgage: $2,774.66
- Cheaper Option: Renting
New Jersey
- Average Home Value: $598,385.33
- Average Monthly Rent: $2,488.33
- Average Monthly Mortgage: $3,765.60
- Cheaper Option: Renting
New Mexico
- Average Home Value: $272,596.54
- Average Monthly Rent: $1,408.38
- Average Monthly Mortgage: $1,715.42
- Cheaper Option: Renting
New York
- Average Home Value: $450,550.64
- Average Monthly Rent: $4,637.27
- Average Monthly Mortgage: $2,835.28
- Cheaper Option: Owning
North Carolina
- Average Home Value: $296,107.28
- Average Monthly Rent: $1,707.62
- Average Monthly Mortgage: $1,863.38
- Cheaper Option: Renting
North Dakota
- Average Home Value: $219,648.05
- Average Monthly Rent: $1,002.45
- Average Monthly Mortgage: $1,382.23
- Cheaper Option: Renting
Ohio
- Average Home Value: $221,789.56
- Average Monthly Rent: $1,462.05
- Average Monthly Mortgage: $1,395.71
- Cheaper Option: Owning
Oklahoma
- Average Home Value: $153,233.18
- Average Monthly Rent: $1,233.26
- Average Monthly Mortgage: $964.29
- Cheaper Option: Owning
Oregon
- Average Home Value: $443,292.40
- Average Monthly Rent: $1,908.67
- Average Monthly Mortgage: $2,789.61
- Cheaper Option: Renting
Pennsylvania
- Average Home Value: $245,253.83
- Average Monthly Rent: $1,562.01
- Average Monthly Mortgage: $1,543.37
- Cheaper Option: Owning
Rhode Island
- Average Home Value: $529,788.13
- Average Monthly Rent: $2,128.14
- Average Monthly Mortgage: $3,333.92
- Cheaper Option: Renting
South Carolina
- Average Home Value: $265,894.80
- Average Monthly Rent: $1,693.44
- Average Monthly Mortgage: $1,673.26
- Cheaper Option: Owning
South Dakota
- Average Home Value: $277,156.35
- Average Monthly Rent: $1,242.41
- Average Monthly Mortgage: $1,744.13
- Cheaper Option: Renting
Tennessee
- Average Home Value: $257,620.56
- Average Monthly Rent: $1,742.77
- Average Monthly Mortgage: $1,621.19
- Cheaper Option: Owning
Texas
- Average Home Value: $289,286.22
- Average Monthly Rent: $1,767.53
- Average Monthly Mortgage: $1,820.46
- Cheaper Option: Renting
Utah
- Average Home Value: $511,211.47
- Average Monthly Rent: $1,858.77
- Average Monthly Mortgage: $3,217.02
- Cheaper Option: Renting
Vermont
- Average Home Value: $374,248.32
- Average Monthly Rent: $2,514.63
- Average Monthly Mortgage: $2,355.12
- Cheaper Option: Owning
Virginia
- Average Home Value: $312,503.76
- Average Monthly Rent: $1,976.59
- Average Monthly Mortgage: $1,966.56
- Cheaper Option: Owning
Washington
- Average Home Value: $559,616.71
- Average Monthly Rent: $2,109.42
- Average Monthly Mortgage: $3,521.63
- Cheaper Option: Renting
West Virginia
- Average Home Value: $141,289.57
- Average Monthly Rent: $1,096.26
- Average Monthly Mortgage: $889.13
- Cheaper Option: Owning
Wisconsin
- Average Home Value: $301,960.82
- Average Monthly Rent: $1,300.26
- Average Monthly Mortgage: $1,900.22
- Cheaper Option: Renting
Wyoming
- Average Home Value: $403,251.27
- Average Monthly Rent: $1,141.04
- Average Monthly Mortgage: $2,537.63
- Cheaper Option: Renting