Most people rent because they think it’s more affordable than owning a home—but in a huge number of metros in the United States, that’s just not true.
According to a recent study from LendingTree, the median mortgage payment is less than the median rent payment in 20 of the 50 largest metros in the US. That means that owning a home in one of these areas will actually save you money over renting. And in another 13 metros, the price difference between owning a home and renting is less than $100 per month—which means that while owning a home in these metros is more expensive, the difference in price isn’t significant, especially when you consider that homeownership is a long-term investment.
Phoenix, Arizona
Median monthly rent payment: $1149
Median monthly mortgage payment: $1105
Difference between median monthly rent and median monthly mortgage payment: -$44
The Takeaway
If you’ve been renting because you think it’s the more affordable option, it might be time to reevaluate. Homeownership may be more affordable than you think. And, in many areas, a mortgage might actually be less than your current rent payment, not to mention the equity you’d be billing and you wouldn’t be paying someone else’s mortgage anymore.
Want to find the home of your dreams?
And also get it at the best price possible? Then download your free copy of this guide: The Ultimate Home Buyer’s Guide
