Buy vs rent: Shocking housing cost differences revealed in US cities

Tamara Walker, Asbury Park Press

Mortgage and rental costs vary from state to state.

Factors such as demographics, interest rates, family size and housing inventories can determine where and whether residents should buy or rent.

According to a new study by SmartAsset, one way to understand your housing budget is to evaluate the difference in monthly costs between owning a home and renting a home.

The financial technology company used data from the U.S. Census Bureau’s 2022 American Community Survey and compared three variables to find the net difference in mortgage and rent costs in cities with populations over 100,000 people.

Here is a finding from a New Jersey city:

"Homeowners in Elizabeth, NJ, pay more than twice as much as renters. The median rent in Elizabeth was $1,391 per month, compared to $2,896 homeownership payments. This is a $1,505 difference, or 2.1 times as high as monthly homeownership costs versus rent payments. The median estimated home value in the city was $450,800."

Cities where homeowners pay more than renters

Seattle, Washington

  • Median monthly gross rent: $1,877

  • Median monthly housing costs for homeowners: $3,250

Los Angeles, California

  • Median monthly gross rent: $1,788

  • Median monthly housing costs for homeowners: $3,239

New York, New York

  • Median monthly gross rent: $1,688

  • Median monthly housing costs for homeowners: $2,991

Elizabeth, New Jersey

  • Median monthly gross rent: $1,391

  • Median monthly housing costs for homeowners: $2,896

Cities where renters pay more than homeowners

Surprise, Arizona

  • Median monthly gross rent: $2,064

  • Median monthly housing costs for homeowners: $1,696

Peoria, Arizona

  • Median monthly gross rent: $1,860

  • Median monthly housing costs for homeowners: $1,785

Meridian, Idaho

  • Median monthly gross rent: $1,789

  • Median monthly housing costs for homeowners: $1,739

Spring Hill, Florida

  • Median monthly gross rent: $1,273

  • Median monthly housing costs for homeowners: $1,253

This article originally appeared on Asbury Park Press: Homeownership costs vs rent: Cities where renting might save you money

Advertisement