Buying a Home Is Cheaper Than Renting One in Just Four Major Cities
Throughout the U.S., buying a home is roughly 25% more expensive than renting one, but in just four metro areas, ownership is cheaper, according to Insider. In Detroit, Philadelphia, Cleveland, and Houston, monthly mortgage costs are lower than monthly rental costs by as much as 24%.
In contrast, it’s twice as expensive to own than to rent in California cities such as San Jose, San Francisco, and Oakland.
In Detroit, the typical home is 24% less expensive to buy than rent — the largest percentage discount among the 50 most populous metros, Redfin said in a report Friday. The median mortgage payment for homebuyers there is $1,296, while the average estimated rent hovers at $1,697.
Philadelphia offers a 7% discount, and it's followed by Cleveland (4% discount) and then Houston (1% discount).