Is It More Expensive to Rent or Buy a Home in the U.S. Today? The Answer May Surprise You
Posted on 02/25/26 at 21:53
- Buying a home costs more than renting today in the US.
- Homeowners pay $548 more per month.
- The gap is wider in major cities.
The question seems simple, but today’s answer surprises many. Buying a home in the United States has become more expensive than renting in the country’s largest cities.
A recent study by LendingTree reveals that homeowners with a mortgage pay, on average, 36.9% more per month than renters. In concrete terms, that represents about $548 extra each month.
Rent or Buy Home in the US: Cities Where the Difference Is Most Striking
In 2024, the average gross monthly rent was $1,487. In contrast, the average monthly mortgage payment reached $2,035.
The annual difference exceeds $6,500. It is also $50 higher than in 2023, when the gap stood at $498 per month.
San Francisco tops the list with the largest gap between renting and buying. There, the monthly cost of homeownership exceeds rent by $1,565.
It is followed by Bridgeport, with a $1,427 difference, and New York City, where the gap reaches $1,409.
In percentage terms, New York City leads the ranking. The difference between renters and homeowners with a mortgage reaches 76.1%.
In 22 of the 100 largest metropolitan areas in the country, homeowners pay at least 50% more per month than renters. Even in cities where the gap is smaller, renting remains the more affordable option.
Why Has Buying a Home Become More Expensive in the US?
The cost of homeownership has surged since the beginning of the pandemic. Rising home prices and higher borrowing costs have directly impacted affordability.
In addition, higher property taxes and more expensive insurance premiums have significantly increased the monthly expenses of those with a mortgage.
This scenario has particularly affected first-time buyers. According to the National Association of Realtors (NAR), the share of first-time buyers fell to 21% last year.
Moreover, the average age of first-time homebuyers reached 40. A clear sign that saving for a down payment has become more challenging.
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Could the Situation Change This Year?
Despite the current outlook, some factors could shift the landscape of renting or buying a home in the US. Mortgage rates are currently hovering around 6%, which could improve affordability if they remain stable.
The avg. 30yr FRM decreases to 6.09% https://t.co/K9HBh1pOlD pic.twitter.com/pn0SRPbQAM
— Freddie Mac (@FreddieMac) February 12, 2026
The study also found significant regional differences. Homeownership proved more affordable in parts of the Midwest and the South.
In the Northeast and the West, renting continues to be the more economical alternative. Buying was more affordable than renting in only 17% of the counties analyzed in those regions.
The reality can vary even within the same county. Professor Shelton Weeks explained that in places like Collier County, Florida, average prices are driven up by beachfront mansions, even though other areas are far more accessible, according to Investopedia.
Today, deciding whether to rent or buy a home is not just about the desire for homeownership. It requires carefully analyzing the numbers and evaluating the broader economic context before making the leap.
