Buying Beats Renting in 22 Major U.S. Cities

<article class="post-1214116 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1214116"><span class="entry-date">September 30, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Buying Beats Renting in 22 Major U.S. Cities</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Buying+Beats+Renting+in+22+Major+U.S.+Cities&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fbuying-beats-renting-in-22-major-u-s-cities%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Buying Beats Renting in 22 Major U.S. Cities Simplifying The Market" decoding="async" loading="lazy" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240926/20240930-Buying-Beats-Renting-in-22-Major-U-original.S" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>That’s right—according to a recent study from <em>Zillow</em>, in 22 of the 50 largest metro areas,<strong> monthly mortgage payments are now lower than rent payments</strong> (<em>see chart below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240926/20240930-Metros-Where-Mortgage-Payments-Are-Lower-Than-Rent-Revised-original.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240926/20240930-Metros-Where-Mortgage-Payments-Are-Lower-Than-Rent-Revised-original.png"/></a>As <a href="https://www.simplifyingthemarket.com/2024/09/20/lower-mortgage-rates-boost-your-buying-power-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a> have eased off their recent peak, <a href="https://www.simplifyingthemarket.com/2024/09/11/the-real-story-behind-whats-happening-with-home-prices/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a> have moderated, and <a href="https://www.simplifyingthemarket.com/2024/08/29/are-we-heading-into-a-balanced-market/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">inventory</a> has ticked up, affordability has improved significantly. When you add all of that up, it’s getting less expensive to buy a home than to rent one in many parts of the country.</p>
<p>This is a big deal if you’ve been renting for a while now. But if you don’t see your city on this list, don’t sweat it. Things are moving fast, and your area might be joining these top metros soon.</p>
<p>You see, talking with a local real estate agent about what’s happening in your market <em>before</em> this happens in your ideal neighborhood could really change the game for you. It’s all about being informed by a true expert, and understanding what was out of reach before might actually be getting <a href="https://www.simplifyingthemarket.com/2024/09/18/the-latest-builder-trend-smaller-less-expensive-homes/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">more affordable</a> than you think. </p>
<p>Now, while this study compares monthly rent to principal and interest on a mortgage payment (not the whole monthly payment), let’s think through this. As <em>Zillow</em> notes, what you can’t ignore when you buy a home are things like taxes, insurance, utilities, and maintenance that should also be factored into your budget and your monthly payment.</p>
<p>But remember – renters pay extra fees too, like renters’ insurance, utilities, parking, and more. And while doing the math may feel like a drag, this equation could be a much more exciting one to work through today.</p>
<p>So, grab your calculator and your agent because the big takeaway is this: it may be time to determine if you’re in a spot to afford what you couldn’t just a <a href="https://www.simplifyingthemarket.com/2024/09/17/mortgage-rates-drop-to-lowest-level-in-over-a-year-and-a-half/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">few months ago</a>.</p>
<p>As Orphe Divounguy, Senior Economist at <em>Zillow</em>, says:</p>
<blockquote><p><em>“… for those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth in the form of home equity — something you lose out on as a renter. </em><strong><em>With mortgage rates dropping, it’s a great time to see how your affordability has changed and if it makes more sense to buy than rent.</em></strong><em>”</em></p></blockquote>
<p>Whether you live in one of these budget-friendly metros where the scales have already tipped in your favor, or any town in-between, it’s time to connect with a local real estate agent to get the conversation started.</p>
<p>With mortgage rates coming down and more homes hitting the market, you’ll want to be <a href="https://www.simplifyingthemarket.com/2024/09/10/why-pre-approval-should-be-at-the-top-of-your-homebuying-to-do-list/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">ready</a> to jump back into your search – before everyone else does.</p>
<h3>Bottom Line</h3>
<p>If you’re tired of renting and ready to find out what it takes to purchase a home in your area now that the landscape may be shifting, connect with a local real estate agent to do the math and see if <a href="https://www.simplifyingthemarket.com/2024/09/12/what-to-know-about-closing-costs/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buying a home</a> makes sense for you now or sometime soon. </p>
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