Buying a home can be a worthwhile investment, but prohibitive costs are holding back potential homebuyers. According to online lending marketplace LendingTree, renting is now cheaper than buying a home in every major U.S. metro. In the U.S., the median gross rent is $1,406, while the median monthly mortgage payment is $1,904. The dollar difference between renting and owning a home with a mortgage is widest in the San Francisco, Bridgeport, Conn., and New York metros. The difference between median monthly gross rent and median monthly housing costs for homes with a mortgage in these metros was $1,414, $1,367, and $1,340, respectively.
Phoenix, Orlando, Fla., and Palm Bay, Fla., have the narrowest gaps between renting and owning a home with a mortgage. In these metros, median gross rent costs in 2023 were $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. Read more
