We may be compensated if you purchase through links on our website. Our team is committed to delivering honest, objective, and independent reviews on home products and services.

Advertiser Disclosure

Our editorial team is committed to creating independent and objective content focused on helping our readers make informed decisions. To help support these efforts we receive compensation from companies that advertise with us.

The compensation we receive from these companies may impact how and where products appear on this site. This compensation does not influence the recommendations or advice our editorial team provides within our content. We do not include all companies, products or offers that may be available.

The 30-Year Question: Is It Cheaper To Rent or Own in Your City?

Written by
Stephanie Minasian-Koncewicz
Written by
Stephanie Minasian-Koncewicz
Updated 02/24/2025
Historic residence building at 1655 Cambridge Street in historic city center of Cambridge, Massachusetts MA, USA.
Adobe – Royalty Free

As home prices and mortgage rates rise, many are wondering whether renting or owning is the more affordable option. For those planning a move, starting with the right moving company can ease the transition, especially when facing rising costs nationwide.

Recent U.S. Census Bureau data shows that rental costs have increased significantly, with median housing costs for renters growing 3.8% in 2023. However, expensive buying markets around the country make renting the more affordable choice in many cities, despite the rise in rental prices.

The research team at This Old House analyzed homeownership and rental costs in 300 U.S. cities using data from Zillow, Freddie Mac, and the U.S. Census Bureau. We looked at mortgage rates, home prices, rent, property taxes, and maintenance costs, adjusting for annual increases based on historical trends. While renting may be more affordable in many cities, buying can still be the better long-term financial choice in some locations. This report uncovers which option makes the most sense for your city or your future home.

Key Findings

  • The typical renter in the U.S. will spend approximately $1.42 million over 30 years, while homeowners will spend about $1.8 million.
  • Renting over 30 years is more expensive than buying a home in 24% of the 300 most populous U.S. cities we looked at.
  • The biggest cost difference between renting and buying is in Sunnyvale, California, where homeowners pay $5.1 million more than renters over 30 years.
  • Bridgeport, Connecticut, is the most expensive city for renting compared to buying, with renters paying nearly $700,000 more over 30 years.
  • In 43% of U.S. cities, monthly rent is cheaper than a mortgage payment.

Is It Cheaper To Buy or Rent?

While homeownership is often seen as a smart investment, it’s significantly more expensive than renting in many parts of the U.S. Over 30 years, the typical renter will spend approximately $1.42 million, while homeowners will spend about $1.8 million—a 27% increase in costs for those who buy.

Our analysis of 300 U.S. cities found that in 43% of them, monthly rent is cheaper than a mortgage. In cities like Bridgeport, Connecticut, rent prices exceed mortgage costs, while in Sunnyvale, California, homeownership is drastically more expensive than renting.

Beyond mortgage payments, homeownership comes with added financial burdens. Real estate agent Jeff Rosa warns that “[future homeowners] should consider the cost of maintenance, repairs, taxes, and insurance in addition to their mortgage payments. The replacement cost of water heaters, appliances, etc. has skyrocketed recently.” These expenses can quickly add up, making renting more affordable for many households—even dual-income, no-kids (DINK) households in high-cost markets.


Best Cities for Renting

In many U.S. cities, renting is the smarter financial choice as homeownership costs far exceed long-term rental expenses. Many of these cities are in California, where high home prices and property taxes make renting more practical.

Sunnyvale, California, is the most expensive city to own a home according to our study, with a 30-year cost difference of $5.1 million between renting and buying—far exceeding the median lifetime earnings of U.S. workers at $1.7 million.

Nevada real estate agent Daryl Hanna explains, “The more expensive it is for a builder or renovation company to build/update a house, the more expensive the house costs. Also, low inventory is causing home values to remain high. Supply and demand!” These realities keep home prices elevated, making renting a more practical option in dozens of markets across the country.

Why Renting Wins in These Cities

In these cities, the high costs of homeownership make renting the more practical choice. Homeownership in these markets costs an average of about $5.5 million over 30 years—more than double the cost of long-term renting.

California remains the epicenter of expensive homeownership, with three of the five priciest housing markets in the study. Coastal cities such as Bellevue, Washington, and Cambridge, Massachusetts, also have expensive home prices, making long-term renting the more affordable option.

With home prices so out of reach, many would-be buyers are giving up on the dream of homeownership and making peace with renting. While renters remain at the mercy of landlord pricing, they avoid unexpected repair costs, hefty down payments, and the financial risks tied to fluctuating home values. For many, the flexibility of renting is becoming a necessity rather than a choice.

Ask An Expert

What should renters consider before buying a home?

“Evaluate the additional financial responsibilities… homeowner’s/hazard insurance, maintenance of landscaping and property systems… all costs typically covered by landlords.”
“Get pre-approved for your mortgage and understand the monthly costs… This will help you stay on budget with a monthly cost that allows you to still live the life you want and do the things you want to do!”
“Consider the cost of maintenance, repairs, taxes, and insurance… compare [renting] to the fixed costs of buying.”
“Insurance companies are now doing inspections… forcing buyers to do expensive home upgrades… Buy a home where the roof and electrical panel are both less than 20 years old.”
“Consider the tax advantages, benefits of building equity… and the cost of down payment, future maintenance, and monthly payments.”

Best Cities for Buying

While renting is often seen as the more affordable choice, long-term renters pay more than homeowners in some cities. Many of these cities are in the Midwest and Northeast, where home prices remain relatively low, making homeownership the better financial decision over time.

In 24% of the cities we analyzed, renting over 30 years is more expensive than buying a home. Rising rental prices coupled with stable or lower mortgage payments make homeownership a smarter option for those who can afford the upfront costs.

Renters may face additional financial strain beyond their monthly payments. As real estate agent Sebastian Frey advises, “Renters may find that they are being squeezed by higher utility costs in areas that are further from the more temperate coastal climates.” These expenses can make renting even less cost-effective, especially in regions with extreme seasonal weather.

For those in markets where rental costs continue to climb, exploring homeownership could provide long-term savings and greater financial stability.

Cities Where Buying Is the Better Deal

In some markets, buying a home can be more cost-effective than long-term renting. Affordable housing prices, rising rental costs, and regional economic trends all play a role in making homeownership the smarter financial move.

Many cities in the Midwest and Northeast offer lower home prices, making it cheaper to buy than rent over time. In places such as Bridgeport, Connecticut, and Springfield, Massachusetts, rental costs are increasing faster than homeownership expenses, making buying the better long-term investment. Even in California, where housing costs are typically high, some cities such as Lancaster and Palmdale have relatively low home prices compared to rental rates, making homeownership a viable option.

However, it’s important to consider additional fees beyond the purchase price. Frey says, “Many first-time homebuyers have little or no understanding of closing costs, which can easily add up to 2%–5% of the purchase price depending on a variety of factors.” Remembering these additional costs can help potential buyers make a more informed decision about whether homeownership is the right financial move for them.


Monthly Mortgage Payments vs. Monthly Rent: What’s More Affordable in Your City?

In 43% of the U.S. cities we analyzed, monthly rent is cheaper than a mortgage payment. The typical monthly rent is $2,453, while monthly mortgage payments are higher at $2,903. Renting may be the more affordable choice for many, but the difference depends a lot on where you live.

Some cities, such as Bridgeport, Connecticut, have rent prices higher than mortgages, while in places like Sunnyvale, California, mortgage payments are much higher than rent. High-cost states such as Hawaii, California, and New Jersey are home to cities with the highest mortgage and rent costs. In contrast, Mississippi, Ohio, and Iowa have cities with lower costs for both.

California continues to stand out with many cities where mortgages are much more expensive than rent, due to high property values and competitive housing markets.

Ask An Expert

In today’s economy, do you believe homeownership is still a sign of financial stability?

“YES!… Unlike renting, which generates wealth for landlords, homeownership allows individuals to build equity in a tangible asset… a fundamental tool for long-term wealth building.”
“People who own homes almost always have a much higher net worth… owning a home proves to the world that you are stable.”
“100% yes! You’re not going to be at the mercy of a landlord raising rent or taking the home out of the rental market. One day you’ll no longer have a mortgage payment… to own it outright someday!”
“In today’s economy, it is more important than ever to own your home. The difference in wealth between homeowners and renters is staggering; homeowners have a net worth that is on average 38 times greater than renters… what you REALLY can’t afford is to rent.”

Tips for Making the Right Choice

Deciding whether to rent or buy a home is a major financial decision, especially for households with dual incomes or children. Weighing factors like long-term plans, hidden costs, and location can help clarify the choice. Here are some important considerations:

  • Assess affordability in high-cost cities: Dual-income, no-kids (DINK) households may find homeownership more feasible in expensive metro areas since their combined earnings can help offset high housing costs.
  • Factor in property taxes and schools: Families with children should research property tax rates and school district quality, as both can significantly impact housing costs and long-term stability.
  • Think about timing: If you plan to relocate within a few years, renting may be the better financial option even for dual-income households since it avoids the costs and risks of selling a home too soon.
  • Plan for hidden expenses: In addition to mortgage payments, consider property taxes, insurance, and ongoing maintenance, which can add up quickly and impact affordability.
  • Get to know your new city: Scott Curcio, a real estate agent in Illinois, says, “If you’re relocating to a new city, and you have the means, visit once or twice and spend a long weekend or week there—this will help you experience the city.”
  • Keep moving costs in mind: Whether you’re renting or buying, moving can be a major expense. Long-distance moving companies can help streamline the process and reduce stress, especially if you’re transitioning to a new city.

Taking the time to research and budget before really diving into your moving journey can help minimize stress and surprises no matter where you eventually decide to call home.

Ask An Expert

Can you provide top moving tips for people relocating?

“Do your due diligence. Take some time to travel to the city you plan to move to (if possible) and scout the area out. See the lay of the land, talk to people, and ask questions. Research schools, hospitals, and cost of living differences.”
“If you’re relocating to a new city, and you have the means, visit once or twice and spend a long weekend or week there—this will help you really experience the city or town you’re moving to.”
“Study the neighborhoods… talk to neighbors… find a Realtor with a proven track record who knows the neighborhood. If renting, work with a really good property management company.”
“My top tip for people in the process of relocating is to use this as an opportunity to purge. I see so many people who bring everything with them when they move, only to end up throwing away much of it soon after arriving. If there’s anything you haven’t touched in a year, you don’t need it—sell it or donate it before you move.”
“Compare moving companies’ reputations and prices; find local companies that take donations; pack and label everything; consider Pods; transfer all utilities; forward mail; collect telephone numbers for all local municipalities and schools.”

Full Data


Methodology

For this study, we analyzed the cost of homeownership and renting in 300 of the most populous U.S. cities. Our analysis included home price data from Zillow, mortgage rates from Freddie Mac, and rental data from Zillow’s ZORI index. We accounted for a 3.07% annual increase in costs based on the Bureau of Labor Statistics’ Consumer Price Index (CPI) for shelter.

Cities with incomplete data—Enterprise, Nevada; Spring Valley, Nevada; Sunrise Manor, Nevada; Hampton, Virginia; Waterbury, Connecticut; and Laredo, Texas—were excluded from the study.

Homeownership Costs

  • Total mortgage cost: Based on Zillow ZHVI housing data for single-family residences (2024) and Freddie Mac’s 52-week average 30-year fixed mortgage rate (6.93%)
  • Down payment: Assumed to be 8% of the home’s value
  • Property taxes: Calculated using median property tax payments from U.S. Census Bureau data, adjusted annually based on historical trends from the Bureau of Labor Statistics
  • Maintenance costs: Estimated at 2% of the home’s value per year, following guidance from Fannie Mae
  • Homeowners insurance: Premiums sourced from Quadrant Information Services

Rental Costs

  • Total rent payments: Based on Zillow ZORI rental data for single-family residences (2024), adjusted annually in line with historical trends from the Bureau of Labor Statistics CPI for shelter
  • Security deposit: Estimated at one month’s rent
  • Renters insurance: Premiums sourced from Quadrant Information Services

Limitations

This study assumes homeownership and rental costs increase at historical rates over a 30-year period. It does not account for unexpected market fluctuations, property tax caps, or local rent control policies. Homeownership costs were analyzed at the city level, while rental data was sourced at both the metropolitan and national levels, matched to corresponding cities.

Questions about our study? Please contact the author here.

Fair Use Policy

We encourage journalists and reporters to share our findings on where it is better to rent or buy. If you choose to do so, please link back to our original story to give us proper credit for our research.

To share feedback or ask a question about this article, send a note to our team at reviews@thisoldhousereviews.com.