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Rental prices are rising so quickly across the United States that in many cities, it’s cheaper to buy a home than to rent one. 

The average asking rent has risen over 20% nationally since 2019, with a median asking price of $1,314. In many markets across the northeast, midwest, and south, homebuyers can get a better deal.

A recent study compared monthly costs between renters and homeowners for studios, 1- and 2-bedroom units. The results spotlight ten of the country’s most livable and affordable cities, including Cleveland, Baltimore, and Louisville. 

In Pittsburgh, Pennsylvania, monthly homebuying costs are $522 less than the average rental. That adds up to over $6,000 in savings per year. In Birmingham, Alabama, the monthly difference is $377, which translates to savings of over $4,000 a year. 

The cities where renting beats homeownership are mainly tech industry hubs like Austin, Seattle, and New York, where homebuying costs reach over 50% higher. 

Ultimately, the decision to rent or buy depends on your personal finances, goals, and circumstances. Beyond its monthly savings, the long-term benefits of owning a home far outweigh renting.

Owners gain home equity over time—that’s the difference between what your home is worth and what’s owed on your mortgage. Plus, they have the stability of a fixed mortgage payment rather than a lease that can change year-to-year. It’s all part of why a homeowner’s average net worth is 40 times higher than a renter's

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The Landis homeownership program can help close the net worth gap by turning renters into homeowners within 2 years. Landis will buy your home for you in cash, then help you build up your finances until you can buy it back at a predetermined price. Get prequalified for free to see what your budget could be. 

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