Homeownership Costs More Than Renting in Every Major Metro

The cost of homeownership has gone up in recent years, with a recent report showing it is now more expensive than renting in every major U.S. metro. According to the report from online lending marketplace LendingTree, the median homeowner with a mortgage pays 36.9% more per month than the median renter.

As of 2024, the median monthly rent was $1,487, while the median monthly housing costs for those with a mortgage were $2,035, a gap of $548 per month, or $6,576 annually.

This gap has widened over the past several years

The gap between median monthly rental costs and homeownership costs have steadily grown over the past few years. In 2023, for instance, the difference in homeownership and rental costs was $498 per month, $50 less than in 2024; in 2022, the gap was $475.

Renting is the cheaper option in every major metro

Overall, renting is cheaper than owning a home with a mortgage in every metro analyzed in the report, and in 22 of the 100 largest metros, homeowners with a mortgage pay at least 50% per month more than renters.

Even in the cities with the smallest gaps between renting and owning a home, renters still pay less. Phoenix has the smallest gap between renters and homeowners at $184, followed by Orlando, Fla., at $257, and Columbia, S.C., at $271.

Which cities recorded the largest gaps between renting and owning?

Among the 100 largest metros, San Francisco has the largest cost difference between renting and owning. There, the gap between the two is $1,565, followed by Bridgeport, Conn., at $1,427, and New York City at $1,409.