Rent or Buy? Renting is Cheaper in 100 U.S. Cities [2025]

With high mortgage rates, soaring home prices, and rising insurance costs, many are asking: Is it better to rent or buy right now? 

While homeownership remains a dream for many, the reality is clear—buying costs 57% more per month than renting across all 100 cities we analyzed as of March 2025. 

Our Rent vs. Buy Index highlights affordability gaps in major U.S. metros, while also pinpointing cities where homeownership remains within reach. 

Key Highlights Buying vs. Renting

➡️ Buying a home is, on average, 57% more expensive per month than renting across the 100 largest U.S. cities. 

➡️ The five U.S. metros where buying is the most expensive compared to renting are: San Jose, CA (131%); Los Angeles, CA (118%); Omaha, NE (117%); Austin, TX (114%); and Portland, OR (100%). 

➡️ The five U.S. metros where buying is closest in cost to renting are: Grand Rapids, MI (1%); Pittsburgh, PA (11%); Lakeland, FL (15%); Philadelphia, PA (15%); and Miami, FL (18%). 

Is It Cheaper to Rent or Buy? 

According to our data study, renting is the cheaper option in most U.S. cities, with buying costing 57% more per month on average. However, in some cities, the gap between renting and buying is smaller, making homeownership more reasonable. 

Let’s explore where buying makes financial sense—and which U.S. cities are a clear no-go. 

U.S. Cities Where It’s Cheaper to Buy 

While renting is cheaper in all 100 metros, some cities have a small buy-to-rent ratio, making homeownership a more viable option. The buy-to-rent ratio measures the cost difference between buying and renting—the lower the ratio, the closer the costs, and the more reasonable buying becomes. 

1. Grand Rapids, MI 

This is the cheapest place to buy a house compared to renting, as the cost difference is only 1%. 

• Monthly Mortgage Payment: $1,773 

• Monthly Rent: $1,752 

• Buy to Rent Ratio: 1% 

• Median Home Price: $261,225 

• Cost of Living: 5.5% lower than the US average 

2. Pittsburgh, PA 

• Monthly Mortgage Payment: $1,614 

• Monthly Rent: $1,453 

• Buy to Rent Ratio: 11% 

• Median Home Price: $229,000 

• Cost of Living: 8.2% lower than the US average 

3. Lakeland, FL 

• Monthly Mortgage Payment: $2,168 

• Monthly Rent: $1,892 

• Buy to Rent Ratio: 15% 

• Median Home Price: $340,000 

• Cost of Living: 8.4% lower than the US average 

4. Philadelphia, PA 

• Monthly Mortgage Payment: $2,165 

• Monthly Rent: $1,883 

• Buy to Rent Ratio: 15% 

• Median Home Price: $350,000 

• Cost of Living: 4.3% higher than the US average 

5. Miami, FL 

• Monthly Mortgage Payment: $3,223 

• Monthly Rent: $2,721 

• Buy to Rent Ratio: 18% 

• Median Home Price: $515,000 

• Cost of Living: 18.9% higher than the US average 

U.S. Cities Where It’s Most Expensive to Buy 

Cities with highest buy to rent ratio or biggest difference between buying and renting cost are worth renting. 

1. San Jose, CA 

This is the most expensive US city to buy a house compared to renting, as the cost difference is whopping 131%. 

• Monthly Mortgage Payment: $7,558 

• Monthly Rent: $3,268 

• Buy to Rent Ratio: 131% 

• Median Home Price: $1,304,500 

• Cost of Living: 131.0% higher than the US average 

2. Los Angeles, CA 

• Monthly Mortgage Payment: $6,499 

• Monthly Rent: $2,984 

• Buy to Rent Ratio: 118% 

• Median Home Price: $1,119,000 

• Cost of Living: 61.7% higher than the US average 

3. Omaha, NE 

• Monthly Mortgage Payment: $2,962 

• Monthly Rent: $1,362 

• Buy to Rent Ratio: 117% 

• Median Home Price: $392,450 

• Cost of Living: 9.2% lower than the US average 

4. Austin, TX 

• Monthly Mortgage Payment: $3,609 

• Monthly Rent: $1,688 

• Buy to Rent Ratio: 114% 

• Median Home Price: $499,000 

• Cost of Living: 29.1% higher than the US average 

5. Des Moines, IA 

• Monthly Mortgage Payment: $2,584 

• Monthly Rent: $1,270 

• Buy to Rent Ratio: 104% 

• Median Home Price: 358075 

• Cost of Living: 13.4% lower than the US average 

Note: Cost of living data is sourced from BestPlaces.net. 

Rent vs. Buy Map: Regional Insights

1. Midwest Offers Some of the Best Opportunities for Buyers: 

Cities in the Midwest, such as Grand Rapids, MI (1%), Pittsburgh, PA (11%), Cleveland, OH (31%), and Detroit, MI (20%), have some of the lowest buy-to-rent ratios. 

2. Southeastern Cities Present More Balanced Markets: 

Southeastern cities like Columbia, SC (21%), Tampa, FL (21%), and Palm Bay, FL (22%) show more manageable cost differences between renting and buying. 

3. Affordable Coastal Markets Exist but Are Limited: 

While most coastal cities have high buy-to-rent ratios, Philadelphia, PA (15%) and Miami, FL (18%) stand out as exceptions where buying is closer in cost to renting compared to other major metros. 

4. West Coast and California Dominate High Buy-to-Rent Ratios: 

Cities in California, including San Jose (131%), Los Angeles (118%), San Diego (83%), and San Francisco (73%), consistently rank among the most expensive places to buy compared to renting. 

5. Major Tech Hubs and High-Growth Metros Are Priced Out: 

Cities like Austin, TX (114%), Seattle, WA (97%), and Portland, OR (100%) show large gaps between buying and renting costs, driven by high home demand and expensive real estate markets. 

6. Mountain West and Midwestern Outliers: 

Omaha, NE (117%) and Denver, CO (81%) stand out as cities where the cost of buying far exceeds renting, despite not being traditionally associated with high-cost markets. 

When Should You Buy or Rent? 

Not sure whether to rent or buy? It’s not just about the price tag—it’s about your lifestyle, goals, and what makes sense right now. Here’s a simple breakdown to help you decide when it’s better to rent and when buying might be the smarter move. 

Rent vs. Buy? What Do Experts Say?

We asked our in-house housing and mortgage experts what buyers and renters should do in today’s market, and here’s what they had to say.

Think long-term

The numbers don’t lie—homeownership costs 57% more per month than renting in most U.S. cities. But for those planning to stay long-term, buying still offers stability, wealth-building, and a hedge against rising rents.

Amresh Singh, CEO and Founder, HomeAbroad

Short-term savings vs. Long-term investment

With mortgage rates still above 6%, renting might seem like the better deal for now. But if you’re planning to stay long-term, buying can make sense—you can build equity over time and refinance when rates drop.

Steven Glick, Director of Mortgage Sales, HomeAbroad

Be strategic

If homeownership is your dream, don’t let today’s market discourage you—just be strategic. If you can afford it comfortably, buying makes sense. If not, renting and saving for the right opportunity could be the better move.

Jason Saylor, Sr. Customer Loan Specialist, HomeAbroad

Full Data: Buying vs. Renting Decision in top 100 U.S. Cities

Methodology

This Rent vs. Buy Study analyzed typical monthly mortgage payments and typical monthly rents across the 100 most populated U.S. cities (U.S. Census Bureau) to compare the cost of homeownership versus renting. 

Typical monthly rents were measured using Zillow’s Observed Rent Index (ZORI) as of February 2025, which reflects the median of the middle 30 percent of asking rents (35th to 65th percentile). ZORI accounts for price fluctuations by tracking rental price changes for the same properties over time. For monthly rent calculations, we factored in the estimated cost of renters insurance, using 1 percent of monthly rent as an approximation. 

To estimate typical monthly mortgage payments, we utilized Realtor.com’s median home price data from February 2025. Our calculations assume a 30-year fixed-rate mortgage with a 6.63% interest rate (Mar 10^th, 2025) and a 20% down payment. In addition to mortgage costs, we factored in statewide homeowners insurance rates from NerdWallet (2025) and county-level property tax rates from SmartAsset. 

This study does not include HOA fees, private mortgage insurance (PMI), closing costs, maintenance expenses, or rental-related fees such as application costs and security deposits. Long-term financial benefits, such as home equity, tax deductions, and the potential for refinancing, were also not factored into the analysis. Additionally, the study does not adjust for potential differences in home quality between rental and owned properties. 

By utilizing standardized data sources and assumptions, this study provides an objective comparison of monthly homeownership costs vs. renting costs across 100 U.S. cities, helping consumers make informed financial decisions in today’s housing market. 

About the author:

Michele Lawrie, a seasoned real estate professional licensed in New York and Florida, serves as the Chief Real Estate Officer at HomeAbroad. With over 15 years of experience and specialized certifications from the NAR (National Association of Realtors), Michele is a trusted expert for foreign nationals buying US real estate.

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