If You’re Renting, You’re Saving Over $1,000 a Month—Here’s Where
Dreaming of owning a home but stuck renting? Don’t feel bad—you might actually be winning financially.
In many U.S. cities, it’s way cheaper to rent a starter home than to buy one, and we’re talking serious savings—over $1,000 a month in some places!
A recent report by John Burns Research & Consulting shows that renting a single-family home in the top 20 markets costs way less than buying one, even after including mortgage payments and maintenance costs.
On average, renting saves $1,091 per month compared to buying. Including all home types, the savings dip slightly to $1,067, but that’s still a big chunk of change.
Owning a Home? Not as Cheap as It Used to Be
Buying a home hasn’t been this expensive compared to renting since 2016.
Back then, the gap between renting and owning was only $233 a month. Now? It’s nearly five times that amount.
Danielle Nguyen, vice president of research at John Burns, wasn’t surprised: “It’s still more expensive monthly to buy a single-family home than it is to rent one.”
But Wait—What About Building Wealth?
Sure, renting saves money upfront, but homeowners have one major advantage: equity.
Owning a home builds long-term wealth. A recent Aspen Institute study found the median net worth for homeowners in the U.S. is $400,000, compared to just $10,400 for renters.
Why Is Renting So Much Cheaper?
Two words: mortgage rates. With rates hovering around 7%, monthly payments are sky-high.
The report says rates would need to drop to 3.75% to make owning more affordable—something experts don’t see happening anytime soon.
So, What Can You Do?
If homeownership is your goal, look for markets where the cost gap is smaller.
For example, in Cincinnati, owning costs just $4 more than renting.
Or, consider new builds—homebuilders are offering mortgage rate buy-downs that lower rates to around 4%–5%, which can shrink the cost difference.
Where Should You Rent Instead of Buy?
Here are the top 20 cities where renting saves you the most compared to buying:
- Austin, TX – Save $1,900/month
- Denver, CO – Save $1,298/month
- Las Vegas, NV – Save $1,287/month
- Riverside, CA – Save $1,207/month
- Phoenix, AZ – Save $1,176/month
- Dallas, TX – Save $1,028/month
- Nashville, TN – Save $990/month
- Miami, FL – Save $915/month
- Raleigh, NC – Save $847/month
- Orlando, FL – Save $847/month
- San Antonio, TX – Save $821/month
- Charlotte, NC – Save $812/month
- Houston, TX – Save $756/month
- Jacksonville, FL – Save $665/month
- Tampa, FL – Save $563/month
- Atlanta, GA – Save $547/month
- Chicago, IL – Save $421/month
- Columbus, OH – Save $407/month
- Indianapolis, IN – Save $35/month
- Cincinnati, OH – Save $4/month
Final Thoughts: Is Renting Really Better?
While renting might save you money right now, buying still has long-term perks, like building equity and stability.
But let’s be honest—saving an extra $1,000 a month sounds pretty sweet, especially if it helps you avoid being house-poor.
If homeownership is your dream, it might make sense to wait until rates drop or explore areas where the cost gap is smaller.
At the end of the day, the best option depends on your budget, goals, and where you live.
So whether you’re renting or planning to buy, keep an eye on your savings—and your dream home might not be as far off as you think.