In most of the U.S., it's more expensive for a household to purchase a home than continue to rent, but some cities offer more affordable home prices.
In recent years, rising home prices and mortgage rates have put major pressure on Americans’ budgets. Owning a home used to be cheaper than renting, but that trend has reversed across most of the U.S. As of January 2025, the average monthly mortgage payment is 21% higher than monthly rent. According to a recent report from Construction Coverage, in just 32 of 343 cities analyzed, homeownership is cheaper than renting. Most of these cities are in Southern or Rust Belt states, such as Alabama, Georgia, Ohio, and Michigan. In these locations, home costs remain relatively low compared with the rest of the country.
And within some geographic markets, buying is unquestionably more difficult. Locations that face low supply, competitive markets, and high home prices—like cities throughout California and in the greater Seattle, WA region—can be three or even close to four times more expensive for buyers. Fast-growing cities like Frisco, TX and Cary, NC are also proving especially challenging for buyers.Read more
