Key findings
Nationwide, the median monthly rent in 2023 was $1,406, while the median monthly housing cost for homeowners with a mortgage was $1,904 — a difference of $498. That gap widened from 2022, when the difference was $475.
The largest expense gaps between renting and owning a home were in:
- San Francisco: Median rent of $2,397, compared to $3,811 in homeownership costs, a difference of $1,414
- Bridgeport, Connecticut: Median rent of $1,862, compared to $3,229 in homeownership costs, a difference of $1,367.
- New York City: Median rent of $1,764, compared to homeownership costs of $3,104, a difference of $1,340.
Conversely, the smallest gaps were found in:
- Phoenix: Median rent of $1,760, only $90 less than the $1,850 median for homeowners
- Orlando: Median rent of $1,799, only $127 less than the $1,926 median for homeowners
- Palm Bay, Florida: Median rent of $1,648, only $128 less than the $1,776 median for homeowners
When measured as a percentage, renters in New York, Bridgeport and Providence, Rhode Island, saved the most compared to homeowners. In these cities, rent was between 66% and 76% lower than the median homeownership costs.
Rent or buy?
According to LendingTree, there is no universal answer to whether renting or buying is the better choice. Its experts recommend consumers consider their personal finances, lifestyle needs and long-term plans.
Renting may be the better option if:
- Affording a mortgage is difficult. With mortgage rates hovering near 7% and median home prices above $400,000, buying is costly. Renting may be a better short-term financial choice.
- You lack savings for a down payment. Homeownership requires upfront costs, including a down payment and closing fees, while renting typically requires only a security deposit.
- You plan to move soon. Buying a home is a long-term investment. Renting allows for flexibility if you expect to relocate.
- You prefer fewer maintenance responsibilities. Homeowners must pay for repairs and upkeep, whereas landlords typically handle maintenance for renters.
Buying may be the better option if:
- You want to build equity. Homeowners can accumulate wealth as property values rise, unlike renters who do not gain equity.
- You could benefit from tax deductions. Homeowners may deduct mortgage interest, property taxes and other costs on federal tax returns.
- You want control over your living space. Homeownership allows modifications, renovations and customization that renting often does not.
- You are financially stable. Buying a home requires financial security, as missing mortgage payments can lead to foreclosure.
