Housing Costs Across America: Is Renting Or Buying Smarter?

Renting vs. buying: How housing costs compare across America

The cost of housing isn’t just limited to the price tag of your monthly rent or the cost of financing the purchase price of your home. On the rental side, the cost of utilities can add a consistent and considerable amount to your expenses. For homeowners, mortgage costs are padded not only by utilities but also by homeowners’ insurance, property taxes and maintenance costs. These hidden costs can add up and change the dynamics of trade-offs between the flexibility of renting versus the security of owning your own home.

With this in mind, SmartAsset ranked 342 of the largest U.S. cities based on the median gross rental and housing costs that residents face every month—including add-ons such as utilities, insurance, maintenance, and taxes—to help people most accurately evaluate the ongoing costs of buying versus renting.

Key findings

• It costs twice as much to be a homeowner as a renter in Newark, New Jersey. Homeowners face median monthly costs of $2,641, which is 1.97 times the median monthly costs of $1,341 for renters. The median home value for owner-occupied units here is $403,500—just slightly higher than the median across large cities.
• Homeowners pay $1,564 more per month than renters in Oakland, California. This represents the highest dollar premium for homeownership statewide. Homeowners face particularly high costs in Oakland, with a median monthly housing bill of $3,502, compared to $1,938 for renters. Overall, Oakland ranks sixth among California’s counties for homeownership costs as a percentage of rental costs.
• Renters have the best advantage in Surprise, Arizona. Renters have the biggest advantage in Surprise, where renting offers a roughly 15% discount—or savings of $321 per month—compared to homeownership. Homeowners pay an average of $1,789, compared to $2,110 for renters.
• It is cheaper to own your home rather than rent in 17 cities. Most of these cities are in Arizona (Surprise, San Tan Valley, Buckeye, Gilbert, Chandler, Tempe, and Goodyear) and Florida (Palm Bay, Riverview, Brandon, Lehigh Acres, Palm Coast, Port St. Lucie, Spring Hill, and Cape Coral). Other cities where homeowners pay less include South Fulton, Georgia, and North Charleston, South Carolina.
• Renters and homeowners are at a dead tie in terms of costs in South Bend, Indiana. Rent and homeownership are both affordable in South Bend, with a median monthly cost of $1,062. The average home value in this area is $148,800.

Top 10 cities where homeownership is more expensive than renting

1. Newark, New Jersey

• Housing cost ratio (Homeowner: Renter): 1.969
• Difference in monthly costs for homeowners relative to renters: $1,300
• Median monthly costs while renting: $1,341
• Median monthly housing costs for homeowners: $2,641
• Median home value: $403,500

2. Elizabeth, New Jersey

• Housing cost ratio (Homeowner: Renter): 1.908
• Difference in monthly costs for homeowners relative to renters: $1,372
• Median monthly costs while renting: $1,511
• Median monthly housing costs for homeowners: $2,883
• Median home value: $468,200

3. New Orleans

• Housing cost ratio (Homeowner :Renter): 1.898
• Difference in monthly costs for homeowners relative to renters: $1,080
• Median monthly costs while renting: $1,203
• Median monthly housing costs for homeowners: $2,283
• Median home value: $306,400

4. Yonkers, New York

• Housing cost ratio (Homeowner: Renter): 1.826
• Difference in monthly costs for homeowners relative to renters: $1,380
• Median monthly costs while renting: $1,671
• Median monthly housing costs for homeowners: $3,051
• Median home value: $541,200

5. Los Angeles

• Housing cost ratio (Homeowner: Renter): 1.810
• Difference in monthly costs for homeowners relative to renters: $1,519
• Median monthly costs while renting: $1,875
• Median monthly housing costs for homeowners: $3,394
• Median home value: $919,900

6. Oakland, California

• Housing cost ratio (Homeowner: Renter): 1.807
• Difference in monthly costs for homeowners relative to renters: $1,564
• Median monthly costs while renting: $1,938
• Median monthly housing costs for homeowners: $3,502
• Median home value: $915,000

7. Fargo, North Dakota

• Housing cost ratio (Homeowner: Renter): 1.786
• Difference in monthly costs for homeowners relative to renters: $750
• Median monthly costs while renting: $954
• Median monthly housing costs for homeowners: $1,704
• Median home value: $282,700

8. Metairie, Louisiana

• Housing cost ratio (Homeowner: Renter): 1.783
• Difference in monthly costs for homeowners relative to renters: $895
• Median monthly costs while renting: $1,143
• Median monthly housing costs for homeowners: $2,038
• Median home value: $319,700

9. New York City

• Housing cost ratio (Homeowner: Renter): 1.766
• Difference in monthly costs for homeowners relative to renters: $1,339
• Median monthly costs while renting: $1,748
• Median monthly housing costs for homeowners: $3,087
• Median home value: $743,000

10. East Los Angeles, California

• Housing cost ratio (Homeowner: Renter): 1.759
• Difference in monthly costs for homeowners relative to renters: $1,091
• Median monthly costs while renting: $1,437
• Median monthly housing costs for homeowners: $2,528
• Median home value: $633,600

Top 10 cities where renting is more expensive than homeownership

1. Surprise, Arizona

• Housing cost ratio (Homeowner :Renter): 0.848
• Difference in monthly costs for homeowners relative to renters: -$321
• Median monthly costs while renting: $2,110
• Median monthly housing costs for homeowners: $1,789
• Median home value: $443,500

2. San Tan Valley, Arizona

• Housing cost ratio (Homeowner: Renter): 0.857
• Difference in monthly costs for homeowners relative to renters: -$300
• Median monthly costs while renting: $2,091
• Median monthly housing costs for homeowners: $1,791
• Median home value: $433,500

3. Palm Bay, Florida

• Housing cost ratio (Homeowner: Renter): 0.890
• Difference in monthly costs for homeowners relative to renters: -$190
• Median monthly costs while renting: $1,722
• Median monthly housing costs for homeowners: $1,532
• Median home value: $300,600

4. Riverview, Florida

• Housing cost ratio (Homeowner: Renter): 0.892
• Difference in monthly costs for homeowners relative to renters: -$240
• Median monthly costs while renting: $2,215
• Median monthly housing costs for homeowners: $1,975
• Median home value: $392,100

5. Brandon, Florida

• Housing cost ratio (Homeowner: Renter): 0.903
• Difference in monthly costs for homeowners relative to renters: -$184
• Median monthly costs while renting: $1,890
• Median monthly housing costs for homeowners: $1,706
• Median home value: $360,200

6. Lehigh Acres, Florida

• Housing cost ratio (Homeowner: Renter): 0.903
• Difference in monthly costs for homeowners relative to renters: -$167
• Median monthly costs while renting: $1,718
• Median monthly housing costs for homeowners: $1,551
• Median home value: $321,700

7. Buckeye, Arizona

• Housing cost ratio (Homeowner: Renter): 0.925
• Difference in monthly costs for homeowners relative to renters: -$145
• Median monthly costs while renting: $1,930
• Median monthly housing costs for homeowners: $1,785
• Median home value: $426,000

8. Palm Coast, Florida

• Housing cost ratio (Homeowner: Renter): 0.938
• Difference in monthly costs for homeowners relative to renters: -$111
• Median monthly costs while renting: $1,790
• Median monthly housing costs for homeowners: $1,679
• Median home value: $385,000

9. South Fulton, Georgia

• Housing cost ratio (Homeowner :Renter): 0.948
• Difference in monthly costs for homeowners relative to renters: -$94
• Median monthly costs while renting: $1,815
• Median monthly housing costs for homeowners: $1,721
• Median home value: $334,100

10. Port St. Lucie, Florida

• Housing cost ratio (Homeowner: Renter): 0.952
• Difference in monthly costs for homeowners relative to renters: -$98
• Median monthly costs while renting: $2,053
• Median monthly housing costs for homeowners: $1,955
• Median home value: $397,500

Data and methodology

To determine the net difference in monthly costs between homeowners and renters, SmartAsset compared the following variables across 342 cities with populations exceeding 100,000 people for which data were available. All data comes from the U.S. Census Bureau’s 2023 American Community Survey.

• Mortgage cost: The median monthly housing costs for owner-occupied housing units with a mortgage. This includes the cost of mortgage, insurance, taxes, common utilities, and any applicable condominium and mobile home fees.
• Rent cost: The gross median monthly rent for occupied units paying rent. This includes the price of rent, as well as the average costs of utilities and fuel.

Cities were ranked on the relative difference between monthly costs for homeowners versus those for renters. The dollar value in difference, as well as median home values, was also observed.

This story was produced by SmartAsset and reviewed and distributed by Stacker.

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