Renting vs. Owning a Home: The Cost Difference in Every State

Most personal finance experts agree it’s better to own a home than rent, especially if you want to build wealth over time. Depending where you live, however, a new original research study from GOBankingRates reveals renting may be more cost-effective compared to buying a home.

For this study, GOBankingRates used the Zillow Home Value Index to find the average single-family home value across all U.S. cities. These values were averaged for each state, and the monthly mortgage rate was calculated using a 20% down payment and the current national average 30-year interest rate. We utilized Apartments.com to source the rental cost averages and compare these costs to each state’s mortgage to determine which states are better for owning versus renting homes.

• New York surprised as one of six states where it’s cheaper to pay for a mortgage than rent. The Big Apple’s annual rent costs are $35,928 and an annual mortgage payment is $28,404, amounting to a cost difference of $7,524.
• Illinois, Louisiana, Mississippi, Pennsylvania and West Virginia made up the remaining six states where mortgage payments cost less than rent. Homeowners save $3,240 (Illinois), $1,908 (Pennsylvania), $1,704 (West Virginia), $1,020 (Mississippi) and $372 (Louisiana) annually.
• Hawaii renters save more than $30,000 annually. The Aloha State’s annual rent costs are $21,780 while annual mortgage payments amount to an eye-popping $56,364. 

See the cost difference for renting versus owning a home across America, organized in alphabetical state order. Also, find out how much a three-bedroom home costs to own in every state.

• Average monthly rent: $1,051
• Monthly mortgage payment: $1,120
• More affordable to rent or own? Rent

• Average monthly rent: $1,306
• Monthly mortgage payment: $1,933
• More affordable to rent or own? Rent

• Average monthly rent: $1,327
• Monthly mortgage payment: $2,100
• More affordable to rent or own? Rent

• Average monthly rent: $959
• Monthly mortgage payment: $1,058
• More affordable to rent or own? Rent

• Average monthly rent: $2,207
• Monthly mortgage payment: $3,839
• More affordable to rent or own? Rent

• Average monthly rent: $1,564
• Monthly mortgage payment: $2,688
• More affordable to rent or own? Rent

• Average monthly rent: $1,868
• Monthly mortgage payment: $2,220
• More affordable to rent or own? Rent

• Average monthly rent: $1,516
• Monthly mortgage payment: $1,948
• More affordable to rent or own? Rent

• Average monthly rent: $1,678
• Monthly mortgage payment: $1,937
• More affordable to rent or own? Rent

• Average monthly rent: $1,425
• Monthly mortgage payment: $1,626
• More affordable to rent or own? Rent

• Average monthly rent: $1,815
• Monthly mortgage payment: $4,697
• More affordable to rent or own? Rent

• Average monthly rent: $1,366
• Monthly mortgage payment: $2,277
• More affordable to rent or own? Rent

• Average monthly rent: $1,665
• Monthly mortgage payment: $1,395
• More affordable to rent or own? Own

• Average monthly rent: $1,109
• Monthly mortgage payment: $1,222
• More affordable to rent or own? Rent

• Average monthly rent: $962
• Monthly mortgage payment: $1,132
• More affordable to rent or own? Rent

• Average monthly rent: $1,073
• Monthly mortgage payment: $1,166
• More affordable to rent or own? Rent

• Average monthly rent: $1,070
• Monthly mortgage payment: $1,107
• More affordable to rent or own? Rent

• Average monthly rent: $1,054
• Monthly mortgage payment: $1,023
• More affordable to rent or own? Own

• Average monthly rent: $1,699
• Monthly mortgage payment: $1,945
• More affordable to rent or own? Rent

• Average monthly rent: $1,667
• Monthly mortgage payment: $2,156
• More affordable to rent or own? Rent

• Average monthly rent: $2,513
• Monthly mortgage payment: $3,265
• More affordable to rent or own? Rent

• Average monthly rent: $1,140
• Monthly mortgage payment: $1,225
• More affordable to rent or own? Rent

• Average monthly rent: $1,330
• Monthly mortgage payment: $1,701
• More affordable to rent or own? Rent

• Average monthly rent: $994
• Monthly mortgage payment: $909
• More affordable to rent or own? Own

• Average monthly rent: $1,124
• Monthly mortgage payment: $1,258
• More affordable to rent or own? Rent

• Average monthly rent: $1,413
• Monthly mortgage payment: $2,249
• More affordable to rent or own? Rent

• Average monthly rent: $1,097
• Monthly mortgage payment: $1,322
• More affordable to rent or own? Rent

• Average monthly rent: $1,325
• Monthly mortgage payment: $2,260
• More affordable to rent or own? Rent

• Average monthly rent: $1,852
• Monthly mortgage payment: $2,524
• More affordable to rent or own? Rent

• Average monthly rent: $2,087
• Monthly mortgage payment: $2,833
• More affordable to rent or own? Rent

• Average monthly rent: $1,175
• Monthly mortgage payment: $1,517
• More affordable to rent or own? Rent

• Average monthly rent: $2,994
• Monthly mortgage payment: $2,367
• More affordable to rent or own? Own

• Average monthly rent: $1,344
• Monthly mortgage payment: $1,627
• More affordable to rent or own? Rent

• Average monthly rent: $968
• Monthly mortgage payment: $1,388
• More affordable to rent or own? Rent

• Average monthly rent: $1,073
• Monthly mortgage payment: $1,178
• More affordable to rent or own? Rent

• Average monthly rent: $907
• Monthly mortgage payment: $1,057
• More affordable to rent or own? Rent

• Average monthly rent: $1,472
• Monthly mortgage payment: $2,456
• More affordable to rent or own? Rent

• Average monthly rent: $1,525
• Monthly mortgage payment: $1,366
• More affordable to rent or own? Own

• Average monthly rent: $1,833
• Monthly mortgage payment: $2,436
• More affordable to rent or own? Rent

• Average monthly rent: $1,380
• Monthly mortgage payment: $1,478
• More affordable to rent or own? Rent

• Average monthly rent: $979
• Monthly mortgage payment: $1,531
• More affordable to rent or own? Rent

• Average monthly rent: $1,350
• Monthly mortgage payment: $1,603
• More affordable to rent or own? Rent

• Average monthly rent: $1,243
• Monthly mortgage payment: $1,461
• More affordable to rent or own? Rent

• Average monthly rent: $1,387
• Monthly mortgage payment: $2,646
• More affordable to rent or own? Rent

• Average monthly rent: $1,838
• Monthly mortgage payment: $1,908
• More affordable to rent or own? Rent

• Average monthly rent: $1,774
• Monthly mortgage payment: $2,005
• More affordable to rent or own? Rent

• Average monthly rent: $1,830
• Monthly mortgage payment: $2,966
• More affordable to rent or own? Rent

• Average monthly rent: $970
• Monthly mortgage payment: $828
• More affordable to rent or own? Own

• Average monthly rent: $1,243
• Monthly mortgage payment: $1,586
• More affordable to rent or own? Rent

• Average monthly rent: $1,161
• Monthly mortgage payment: $1,752
• More affordable to rent or own? Rent

View more original studies and surveys in the GOBankingRates original research center.

Methodology: To find the cost of renting versus owning a home in every state, GOBankingRates analyzed the Zillow Home Value Index across all U.S. cities for single-family homes and averaged the values for each state. Using a 20% down payment and the current national average 30-year mortgage rate (from the Federal Reserve Economic Data), the monthly mortgage rate was calculated. The rental cost averages were sourced from Apartments.com for each state. The rental cost was compared to the mortgage for each state to find which states are better for owning versus renting a home. All data was collected on Dec. 10, 2025.