11 Cities Where Rent = Mortgage Costs
A recent study from Go Banking Rates, detailed the median cost of home ownership vs renting in 50 of the biggest cities in the United States.
We've analyzed these cities to find 11 where the median cost difference between renting and owning a home is less than $100.
That difference is ridiculously small.
So, if you choose to build equity in an asset versus giving money to a landlord, you're not sacrificing too much money in the short run. And, in the long run, there is a large scale cost savings.
Nonetheless, $100 could mean the difference for mortgage approval. If you're close, consider renting to own so that you'll be one step closer to buying and building equity on a home.
1. Nashville, Tennessee
In Nashville, the difference between renting and buying a home is $37. Median monthly rent payments are cheaper than median mortgage payments. The median rental payment is $1,655 and median mortgage payments are $1,692. It's more expensive to buy a home in Nashville than it is to rent one.
2. Houston, Texas
The difference between renting and buying in Houston is the same as in Nashville – $37. In Nashville, the median mortgage cost is $1,612 and the median monthly rent cost is $1,575. It's cheaper to rent than it is to buy here.
3. Las Vegas, Nevada
The cost difference between renting and buying in Nevada is a negligible $43 per month. While both rent and buying are affordable, at $1,450 and $1,407, respectively; it is cheaper to rent than it is to purchase.
4. Chicago, Illinois
In the Windy City, it's barely cheaper to rent than to buy. The median cost difference between rent and mortgage in Chicago is $45.
5. Atlanta, Georgia
In Atlanta, the price difference is relatively small. Your monthly rent payment will be $55 less than your monthly mortgage payment in Atlanta. Both costs are reasonable in Atlanta. Median rent is $1,585 and median mortgage payments are $1,640.
6. Fresno, California
The cost difference between renting and buying in Fresno is $56. Median monthly rent is $1,395, while median mortgage cost is $1,339. You'll spend less money in the short- and long- run if you buy a home in Fresno.
7. Mesa, Arizona
There's a $75 difference between median rental payments and median mortgage payments in Mesa. In this city it is cheaper to own than it is to rent.
8. Colorado Springs, Colorado
There is an $85 difference between renting and buying in Colorado Springs, Colorado. Ultimately, it is cheaper to rent than to buy. The median monthly mortgage in Colorado Springs is $1,640, and the median monthly rent is $1,555.
Though monthly mortgage payments are pricier than rent payments in Denver and Colorado Springs, Colorado happens to be one of the top 10 states with the highest income-to-mortgage ratios, according to a Lending Tree study. That means that people in Colorado are paying a smaller fraction of their income towards their mortgages because home prices are likely lower.
The difference between monthly rent payments and monthly mortgage payments in Denver and Colorado Springs is less than $100 each month; therefore, if you are looking to start building up equity in a home, these two cities are still great places to consider rent to own.
9. Los Angeles, California
In Las Angeles, the cost difference between renting and buying is $83. At $3,750 per month, renting is just slightly less expensive than the median monthly mortgage – $3,838.
Additionally, with average rent costs this high, it makes sense to buy so that when you reach retirement, you don't have to worry about affording an extravagant monthly fee.
10. Charlotte, North Carolina
The difference between renting and buying in Charlotte is $92. The median monthly rent here is $1,435 and the median monthly mortgage is $1,527. Therefore, it is cheaper to rent than it is to buy.
11. Denver, Colorado
It is cheaper to rent in Denver than it is to buy. The median monthly rent in Denver is $2,300, while the median monthly mortgage payment is $2,396. That's a $96 difference between renting and buying.