Rent verses own? Statistics find that renting a home is more expensive than owning. In fact, Americans who rent verses own their homes, miss out on almost 40% in savings.
In all of the 100 largest metro areas nationwide, home ownership is cheaper than renting, even with rising mortgage rates and higher home prices.
Based on today’s market, the average savings nationwide is 38% when buying verses renting a home.
However, the gap varies geographically. Home ownership is 5% cheaper than renting in Honolulu and 66% cheaper than renting in Detroit.
There are also situations where the mortgage interest rate can make ownership more expensive. For example, in Orange County California, the savings is 6.8%, when in Cleveland it’s closer to 21%.
Some markets may lean in favor of renting if home prices rise faster than rents and if mortgage rates continue to increase with a stronger economy and less intervention by the Federal Reserve.
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