Housing Costs in the U.S.

The cost of housing in the U.S. has been escalating for years, creating a difficult financial dilemma for many households trying to decide between buying or renting.

While renting is the more affordable option in most markets, a new study reveals that buying may be more affordable in some cities. 

The study, conducted by Construction Coverage, analyzed data from Zillow, the U.S. Census Bureau, and Freddie Mac to calculate the percentage difference between the typical monthly mortgage payment – including property taxes – and monthly rent payments for a median-priced home.

Typical Home is 21% Higher than Monthly Rent Payment

By the numbers:

According to the study, the monthly mortgage payment for the typical home is now 21% higher than the typical monthly rent payment across the country.

However, the data found that there is some good news for prospective buyers in specific areas. 

A “For Sale” sign in front of a home in San Jose, California, US, on Thursday, Sept. 5, 2024. (Credit: David Paul Morris/Bloomberg via Getty Images)

Cities Where Buying is Better than Renting

Out of the 343 cities analyzed, 32 locations were found to be more affordable for buyers than renters. These locations are primarily concentrated in Southern states like Alabama, Georgia, and Texas, as well as Rust Belt regions like Ohio and Michigan. 

In these areas, relatively low home prices made purchasing a home more viable compared to renting.

Cities Where Buying is Better than Renting

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1. Detroit, Michigan: -60.1% (premium/discount of buying vs. renting)
2. Jackson, Mississippi: -59.8%
3. Cleveland, Ohio: -39.3%
4. Birmingham, Alabama: -36.3%
5. Montgomery, Alabama: -31.1%
6. Baltimore, Maryland: -23.6%
7. Memphis, Tennessee: -20.8%
8. Shreveport, Louisiana: -20.2%
9. Toledo, Ohio: -19.4%
10. Akron, Ohio: -16.9%
11. Philadelphia, Pennsylvania: -16.4%
12. Columbus, Georgia: -13.2%
13. Augusta, Georgia: -13%
14. Peoria, Illinois: -12.6%
15. Beaumont, Texas: -12.5%
16. Tuscaloosa, Alabama: -12.3%
17. Hartford, Connecticut: -12.2%
18. Dayton, Ohio: -10.3%
19. St. Louis, Missouri: -10.2%
20. Brownsville, Texas: -9.1%
21. Macon-Bill County, Georgia: -8.6%
22. New Orleans, Louisiana: -7.8%
23. Mobile, Alabama: -7.5%
24. South Bend, Indiana: -7.4%
25. Waco, Texas: -7%
26. Dearborn, Michigan: -4.8%
27. Syracuse, New York: -4.7%
28. Columbia, South Carolina: -3.9%
29. Lansing, Michigan: -2.8%
30. Pompano Beach, Florida: -2.2%
31. Pittsburgh, Pennsylvania: -1.6