Is It Finally Cheaper To Rent Than Buy a Home Again? What the 2026 Numbers Say
Does it cost more to buy or rent a home?
The answer changes over time and varies by city and state. Nevertheless, at this time, some national trends have emerged, which you can compare to your area's advantages.
If you're on the fence, consider the following factors before making a decision as 2026 takes shape.
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Nationwide Average Lease vs. Own Costs
A study by LendingTree analyzed the most recent Census Bureau data, to compare the cost of renting to the total cost of homeownership including property taxes, homeowners insurance, the down payment and more.
They found that homeowners now pay 36.9% more than renters for housing. That breaks down to a gross monthly cost of $2,035 for owners versus $1,487: a $548 monthly savings or $6,576 a year.
That script flipped pretty recently. Another study by Construction Coverage found it only became cheaper to rent in 2022, as skyrocketing interest rates and home prices sent the cost of homeownership through the roof. For many years before that, it had been cheaper to own than rent.
Local Differences
The Construction Coverage study also analyzed the cost to rent versus own in 343 cities across the country. It costs less to rent than to own in most of them, but in 32 of them owning costs less.
Those 32 cities aren't randomly distributed, either. They cluster in the Midwest and Southeast.
"Renting is cheaper than buying in high-cost metro areas such as San Jose, San Francisco, Los Angeles and Seattle," said Ben Mizes, Realtor and cofounder of Clever Offers. As much as residents complain about rent prices in San Francisco for example, they pay far less than owners do. The median rent is $3,750 per Zillow, compared to the average home price of $1,258,198. At a 6% interest rate, a mortgage that size would cost $7,544 — not including property taxes, insurance, repairs, maintenance or any other ownership costs.
Who Should Rent vs. Own?
Over time, homeowners can come out ahead as their home appreciates and they pay down their loan balance. Check out this rent-versus-buy calclulator from Zillow to calculate the breakeven for you personally.
It usually takes years however to break even on your home, accounting for closing costs for both buying and selling. That raises a related downside to owning: lack of flexibility.
Homeowners can't just get up and move a year later if they feel like it. They have to either sell (often at a loss) or become a landlord, with all its attendant headaches. Anyone who doesn't want to stay put for at least five years should probably lease.
Then there are repairs and maintenance. Renters don't have to budget for roof repairs, for new furnaces and hot water heaters. They don't have to spend their weekends trimming trees or painting or refinishing floors. That makes both their budgeting easier and leaves them more free time for family, friends and hobbies.
Then again, homeowners can paint their homes bubblegum pink. Is it worth it? Only you know.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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