Renting or Owning: Which Is Most Affordable?

In a time when consumers are cutting costs and reevaluating finances, the question of renting versus buying is one many have pondered. LendingTree has compared the nation’s 50 largest metropolitan areas’ median gross rents and median mortgages in order to find that answer. From coast to coast, renting is $607 cheaper than owning on average. Some cities, such as San Jose, California, were found to have the largest spread in costs compared to Providence, Rhode Island where the gap is the smallest. Deciding whether to rent or buy takes more than just analyzing median prices, but careful evaluation of lifestyles and future desires. 

Finding a place to live can be challenging — and so can choosing between renting or buying a home. Each option has its advantages and disadvantages, especially in the wake of the COVID-19 pandemic, when many people are struggling to pay their monthly housing costs.

To highlight some of the key differences between renting and owning, LendingTree looked at the median monthly cost to rent and to own a home, for homeowners with and without mortgages, in the nation’s 50 largest metros. In doing so, LendingTree found that renting is usually cheaper than owning until a person has paid off their mortgage.

In addition to comparing costs, LendingTree also looked at who may be better off renting versus buying.

Key findings

If you’re still paying off your mortgage, renting is cheaper than owning in each of the nation’s 50 largest metros. On average, renting is $607 cheaper than owning across the nation’s largest metros.

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