Buying Beats Renting in 22 Major U.S. Cities

If you’ve been renting for a while, it might be time to rethink your housing options. According to a recent study from Zillow, in 22 of the 50 largest metro areas, it’s now cheaper to buy a home than to rent one. This shift is happening as mortgage rates ease, home prices moderate, and inventory increases—making homeownership more affordable.

Why Now Is the Time To Consider Buying

With affordability improving across many areas, monthly mortgage payments are dropping below the cost of rent in several major U.S. cities. This is great news for renters looking to transition to homeownership. Even if your city isn’t one of the 22, don’t worry—it could be next. Housing market dynamics are shifting quickly, and affordability in your area may improve soon.

Work With a Local Real Estate Agent

Whether or not your city is on Zillow's list, talking with a local real estate agent about your market’s current conditions is a smart move. Understanding the local trends can help you decide if now is the time to make your move. While Zillow’s study focuses on mortgage payments, it’s important to remember other costs that come with homeownership, like property taxes, insurance, and maintenance.

However, renters face their own set of expenses, like rent increases, utilities, renters’ insurance, and parking fees. When you break down the costs, owning a home might be more affordable than you realize. Plus, homeownership allows you to build long-term wealth through home equity, which is a significant advantage over renting.

The Wealth-Building Advantage of Homeownership

As Zillow’s Senior Economist Orphe Divounguy explains, homeownership not only offers the possibility of lower monthly payments but also gives you the opportunity to build wealth over time. The equity you build in your home can grow as property values increase, allowing you to gain financial stability. Renters, on the other hand, don’t have this wealth-building benefit.

With mortgage rates trending down and more homes hitting the market, it’s an ideal time to reassess whether buying a home makes sense for you now. Working with an experienced real estate agent can help you stay ahead of the curve and find opportunities in your local market before competition increases.

Bottom Line

If you're tired of renting and wondering if buying a home is more affordable, let's crunch the numbers together. The landscape is shifting, and homeownership might now be within your reach. With improving affordability, now could be the perfect time to invest in your future by purchasing a home.