The Cost of Renting vs. Owning a Home in 50 Cities
Make the most of your money by knowing which option is better.
View Gallery
51 photos
- A recent GOBankingRates study identified the typical rent and cost to own a home in 50 major U.S. cities.
- Although renting can be cheaper, it’s more expensive than owning a home in 27 cities, including Philadelphia, Miami and Washington, D.C.
- Before you decide to buy or rent a home, keep these startling facts in mind.
Renting and owning a home both come with pros and cons — and in some cases, the difference is largely financial, especially when you consider throwing in home upgrades. In some cities, the monthly cost difference between renting and owning can be over $1,000, but in others, the difference is less than $100.
GOBankingRates compared the cost of renting vs. owning a single-family residence in 50 major U.S. cities and found that buying a house is not always cheaper, despite conventional financial wisdom. In fact, it’s cheaper to rent vs. buy in 23 out of the 50 cities included in this study.
Click through to see if it’s cheaper to rent or own a home in these 50 cities.
Albuquerque, N.M.
- It’s cheaper to: Own
- Monthly rent: $1,250
- Monthly mortgage: $1,124
You’ll save $126 a month on average if you buy a home instead of rent in Albuquerque, where the median home list price is $218,000. Not only are homes in Albuquerque relatively affordable compared to the other cities included in this study, but it’s also one of the cities where you can afford to live off less than $50,000 a year, a separate GOBankingRates study found.
Arlington, Texas
- It’s cheaper to: Own
- Monthly rent: $1,550
- Monthly mortgage: $1,177
Houses for sale in Arlington have a median list price of $229,000. On average, it costs $373 less per month to own than rent. However, before you buy a home in Arlington, it’s important to note that it’s one of the cities where the cost of living is rising quickly, a separate GOBankingRates study found.
Atlanta
- It’s cheaper to: Rent
- Monthly rent: $1,585
- Monthly mortgage: $1,640
Although it’s cheaper to rent than to own in Atlanta, the cost difference is only $55 per month. If you’re in the market for a seven-figure home, you’re in luck: Atlanta is one of the cities with the most million-dollar homes for sale.
Austin, Texas
- It’s cheaper to: Rent
- Monthly rent: $1,695
- Monthly mortgage: $1,853
It’s cheaper to rent than own in Austin, where homes for rent cost an average of $1,695 per month. In fact, renters save an average of $158 each month compared to homeowners. If you want to save even more on living costs, consider moving to the Austin suburbs, where rent is even cheaper, according to a separate GOBankingRates study that compared the cost of living in the city vs. suburbs across America.
Baltimore
- It’s cheaper to: Own
- Monthly rent: $1,300
- Monthly mortgage: $792
It’s significantly cheaper — $508 per month cheaper — to own a home than to rent in Baltimore. The city has the fourth-lowest average monthly mortgage of all of the cities in this study, and it’s one of the 20 U.S. cities where you can own a house for less than $1,000 a month.
Baton Rouge, La.
- It’s cheaper to: Own
- Monthly rent: $1,300
- Monthly mortgage: $1,107
On average, monthly mortgage payments are $193 less than rent costs in Baton Rouge, where houses for rent cost an average of $1,300 per month.
Boston
- It’s cheaper to: Rent
- Monthly rent: $3,400
- Monthly mortgage: $3,689
Whether you rent or buy, it costs a lot to live in Boston. The Northeast city has the fourth-highest average rent and the fifth-highest average monthly mortgage. But you’ll save an average of $289 each month if you rent rather than buy your home there.
Charlotte, N.C.
- It’s cheaper to: Rent
- Monthly rent: $1,435
- Monthly mortgage: $1,527
You’ll save an average of $92 if you rent instead of buy in Charlotte, where the median home list price is $298,900.
Chicago
- It’s cheaper to: Rent
- Monthly rent: $1,512
- Monthly mortgage: $1,548
It’s just barely cheaper to rent than to own in Chicago. With an average monthly cost difference of $36, you could choose your living arrangement based on lifestyle preferences rather than finances.
Cleveland
- It’s cheaper to: Own
- Monthly rent: $850
- Monthly mortgage: $417
Cleveland is tied with Memphis, Tenn., for the cheapest monthly rent of all the cities included in this study, but it also has the cheapest monthly mortgage. The average monthly mortgage payment costs $433 less than the average rent.
Ohio requires the lowest salary to own a home of all 50 states, a previous GOBankingRates study found.
Colorado Springs, Colo.
- It’s cheaper to: Rent
- Monthly rent: $1,555
- Monthly mortgage: $1,640
It costs an average of $85 less to rent than to own in Colorado Springs, where the median home list price is $329,000.
Columbus, Ohio
- It’s cheaper to: Own
- Monthly rent: $1,307.50
- Monthly mortgage: $847
It’s much cheaper to own than to rent in Columbus, where the average monthly mortgage payment is $460.50 less than rent. With the median list price at $159,250, Columbus has some of the most affordable homes of all of the cities included in this study.
Be Prepared: This Is the Credit Score You Need to Buy a House
Dallas
- It’s cheaper to: Rent
- Monthly rent: $1,650
- Monthly mortgage: $1,943
Renters save an average of $293 per month compared to homeowners in Dallas. The median list price in the Southern city is $399,999.
Denver
- It’s cheaper to: Rent
- Monthly rent: $2,300
- Monthly mortgage: $2,396
The average cost difference between renting and owning in Denver is less than $100, but it is slightly cheaper to rent.
El Paso, Texas
- It’s cheaper to: Own
- Monthly rent: $1,100
- Monthly mortgage: $866
Homeowners in El Paso save an average of $234 per month compared to renters. The median list price in the city is $162,950.
Fort Worth, Texas
- It’s cheaper to: Own
- Monthly rent: $1,550
- Monthly mortgage: $1,290
The median list price in Fort Worth is $246,925, which falls in the middle compared to the other cities in this study, but it’s cheaper to own there than to rent. On average, the monthly mortgage payment is $260 less than monthly rent.
Fresno, Calif.
- It’s cheaper to: Own
- Monthly rent: $1,395
- Monthly mortgage: $1,339
It costs $56 less on average to own than to rent in Fresno. Of the eight California cities included in this study, it’s one of only two where buying is cheaper than renting.
Honolulu
- It’s cheaper to: Rent
- Monthly rent: $2,700
- Monthly mortgage: $3,265
The monthly cost difference between renting and owning in Honolulu — $565 — is the fifth-highest compared to the other cities included in this study, with renters saving significantly. Hawaii is also an expensive state to raise a family.
Houston
- It’s cheaper to: Rent
- Monthly rent: $1,575
- Monthly mortgage: $1,612
It’s cheaper to rent than to own in Houston — but not by much. On average, rent costs $37 less per month than a mortgage in the city.
Indianapolis
- It’s cheaper to: Own
- Monthly rent: $995
- Monthly mortgage: $793
Indianapolis is tied with Oklahoma City for the fourth-lowest average monthly rent, but it also has the fifth-lowest average monthly mortgage. The average homeowner in the city saves $202 on monthly living costs.
Jacksonville, Fla.
- It’s cheaper to: Own
- Monthly rent: $1,200
- Monthly mortgage: $1,011
Homeowners save an average of $189 per month compared to renters in Jacksonville, where the median home list price is $204,900.
Kansas City, Mo.
- It’s cheaper to: Rent
- Monthly rent: $957.50
- Monthly mortgage: $983
Renters save an average of $25.50 per month on living costs in Kansas City. The cost difference between renting and owning is the second smallest compared to all of the other cities included in this study.
Las Vegas
- It’s cheaper to: Own
- Monthly rent: $1,450
- Monthly mortgage: $1,407
It’s slightly cheaper to own than to rent in Las Vegas, with the cost difference between the two averaging $43 per month. The median home list price in Sin City is $285,000.
Long Beach, Calif.
- It’s cheaper to: Rent
- Monthly rent: $2,447.50
- Monthly mortgage: $2,817
With a median home list price of $549,450, it’s cheaper to rent than to own in Long Beach. Renters save an average of $369.50 per month.
Los Angeles
- It’s cheaper to: Rent
- Monthly rent: $3,750
- Monthly mortgage: $3,838
Los Angeles has the second-highest rent and the fourth-highest monthly mortgage compared to all of the cities in this study. Although rent is so high in the City of Angels, it’s still $88 less, on average, than a monthly mortgage payment.
Can’t Afford to Buy a Home? Find Out: How to Save for a House While Renting
Memphis, Tenn.
- It’s cheaper to: Own
- Monthly rent: $850
- Monthly mortgage: $508
Although Memphis is tied with Cleveland for the cheapest rent of all the cities in this study, it’s still cheaper to own a home in the Southern city. Monthly mortgage payments are $342 less than rent, on average. In fact, Memphis has the second-lowest average monthly mortgage of all the cities in this study.
Mesa, Ariz.
- It’s cheaper to: Own
- Monthly rent: $1,400
- Monthly mortgage: $1,325
The cost difference between renting and owning a home in Mesa is only $75 a month, on average. The median home list price in the city is $259,000, but there are homes for less than $100,000 in the city, a previous GOBankingRates study found.
Miami
- It’s cheaper to: Own
- Monthly rent: $2,500
- Monthly mortgage: $2,276
The median home list price in Miami is on the higher end compared to the other cities in this study at $462,000. But it’s still cheaper to own than to rent in the city: The average monthly mortgage is $224 less than monthly rent.
Milwaukee
- It’s cheaper to: Own
- Monthly rent: $997
- Monthly mortgage: $670
Milwaukee has the fifth-lowest monthly rent of all of the cities in this study, but it has the third-lowest monthly mortgage — and the average monthly mortgage is $327 less than the average monthly rent.
Don’t Overspend: How Much House Can I Afford?
Minneapolis
- It’s cheaper to: Own
- Monthly rent: $1,695
- Monthly mortgage: $1,447
Owning a home costs $248 less per month, on average, than renting in Minneapolis, where the median home list price is $288,640.
Nashville, Tenn.
- It’s cheaper to: Rent
- Monthly rent: $1,655
- Monthly mortgage: $1,692
The cost difference between renting and owning in Nashville is only $37 per month on average — the fifth-smallest difference of all the cities in this study.
New Orleans
- It’s cheaper to: Rent
- Monthly rent: $1,465
- Monthly mortgage: $1,587
The median home list price in New Orleans is $320,000. Renters save an average of $122 per month compared to homeowners in the Big Easy.
New York
- It’s cheaper to: Rent
- Monthly rent: $2,500
- Monthly mortgage: $4,066
NYC has the biggest price difference between renting and owning of all the cities included in this study. Renters save an average of $1,566 each month compared to those who are making mortgage payments.
It’s Not Over: You Can Still Buy a House With Student Loan Debt — Here’s How
Oakland, Calif.
- It’s cheaper to: Rent
- Monthly rent: $2,800
- Monthly mortgage: $3,315
Like most California cities, it’s cheaper to rent than to own in Oakland. Monthly rent costs $515 less than a monthly mortgage, on average, in the NorCal city.
Oklahoma City
- It’s cheaper to: Own
- Monthly rent: $995
- Monthly mortgage: $963
The cost difference between renting vs. owning in Oklahoma City — an average of $32 per month — is the third-smallest cost difference compared to the other cities included in this study.
Omaha, Neb.
- It’s cheaper to: Own
- Monthly rent: $1,300
- Monthly mortgage: $1,182
On average, owning a home costs $118 less per month than renting in Omaha, where the median home list price is $229,950.
Philadelphia
- It’s cheaper to: Own
- Monthly rent: $1,400
- Monthly mortgage: $979
With a median home list price of $198,000, it can be much more affordable to own than to rent in the City of Brotherly Love. Monthly mortgage payments are $421 less than monthly rent, on average, in Philadelphia.
Phoenix
- It’s cheaper to: Own
- Monthly rent: $1,410
- Monthly mortgage: $1,360
It’s slightly cheaper — $50 cheaper per month, on average — to own than to rent in Phoenix. The median list price in the city is $275,000.
Time to Move? 15 Places in America Where Homes Are Still Affordable
Portland, Ore.
- It’s cheaper to: Rent
- Monthly rent: $1,950
- Monthly mortgage: $2,266
Renters save an average of $316 per month compared to homeowners in Portland, where the median home list price is $459,900.
Raleigh, N.C.
- It’s cheaper to: Rent
- Monthly rent: $1,400
- Monthly mortgage: $1,727
Rent in Raleigh costs $327 less per month than a mortgage payment, on average. The median home list price in the city is $347,248.
Sacramento, Calif.
- It’s cheaper to: Own
- Monthly rent: $1,680
- Monthly mortgage: $1,629
It costs $51 less, on average, to own than to rent in Sacramento. Of the eight California cities included in this study, it’s one of only two — the other being Fresno — where it’s cheaper to own than to rent.
San Antonio
- It’s cheaper to: Own
- Monthly rent: $1,250
- Monthly mortgage: $1,160
The cost difference between renting and owning in San Antonio is only $90 per month, on average. The median home list price in the city is $229,500.
San Diego
- It’s cheaper to: Rent
- Monthly rent: $2,950
- Monthly mortgage: $3,292
San Diego has high rent and mortgage costs compared to the other cities in this study, but costs are higher for homeowners. Renters save an average of $342 per month compared to those who are paying off a mortgage in the SoCal city.
See How You Stack Up: The Average American Spends This Much on Rent
San Francisco
- It’s cheaper to: Rent
- Monthly rent: $4,500
- Monthly mortgage: $5,736
San Francisco has the highest rent and mortgage payments of all the cities included in this study — but it’s much cheaper to rent than to own in the City by the Bay. On average, renters save $1,236 per month.
San Jose, Calif.
- It’s cheaper to: Rent
- Monthly rent: $3,500
- Monthly mortgage: $4,735
The cost difference between renting and owning in San Jose is the third highest of all the cities included in this study. On average, renters save $1,235 per month.
Seattle
- It’s cheaper to: Rent
- Monthly rent: $2,800
- Monthly mortgage: $3,553
Renters in Seattle pay $753 less per month, on average, than homeowners. The cost difference between renting and owning is the fourth highest in the Pacific Northwest city compared to all of the cities included in this study.
Tucson, Ariz.
- It’s cheaper to: Own
- Monthly rent: $1,200
- Monthly mortgage: $1,049
With a median home list price of $202,500 in Tucson, it’s cheaper to own than to rent. On average, homeowners save $151 per month compared to renters.
Tulsa, Okla.
- It’s cheaper to: Own
- Monthly rent: $950
- Monthly mortgage: $861
Tulsa has the second-lowest rent costs of all the cities included in this study. But homeowners save an average of $89 per month in the city vs. renters.
Virginia Beach, Va.
- It’s cheaper to: Own
- Monthly rent: $1,472.50
- Monthly mortgage: $1,453
There isn’t much of a cost difference between renting and owning in Virginia Beach. With a $19.50 difference per month, on average, the city has the smallest difference in costs of all the cities included in this study.
Washington, D.C.
- It’s cheaper to: Own
- Monthly rent: $2,995
- Monthly mortgage: $2,755
With the fifth-highest average rent of all the cities in this study, it’s cheaper to own than to rent in the U.S. capital. Homeowners save an average of $240 per month.
Renting vs. Owning in Major Cities Across the Country
The cities with the biggest cost differences in renting vs. owning are New York, San Francisco, San Jose, Calif., Seattle and Honolulu — and it’s cheaper to rent in all of them. The cost difference is negligible — less than $40 — in Virginia Beach, Va., Kansas City, Mo., Oklahoma City, Chicago, Houston and Nashville, Tenn.
Click through to read more about the best city in every state to buy a home.
More on Saving Money on Housing
- These Are the 50 Cheapest Countries in the World, Study Finds
- Why Paying for a Storage Unit Is Always a Terrible Idea
- 12 Essential Money Tips for Every Phase of Your Financial Life
Methodology: GOBankingRates determined the cost of renting vs. owning a home in 50 cities across the U.S. by comparing single-family residence monthly rental prices and the monthly mortgage price based on the median listing price in every city, sourced from Zillow. GOBankingRates calculated the estimated monthly mortgage based on a 20 percent down payment and a 30-year fixed-rate loan.
View All
