(NewsNation) — It’s cheaper to be a renter than to pay a mortgage in all of the nation’s largest cities this year, a recent Bankrate study found.
The consumer financial services company compared average monthly mortgage payments — with insurance and taxes included — to the average monthly rent across 50 major U.S. metros in 2025.
The study found that, among all types of homes, apartments and townhouses, it costs, on average, 38% less to choose a lease over a home loan in the U.S.
The average monthly mortgage payment for a median-priced home rose by 2.4% to $2,768, as of February 2025, according to Redfin data. Comparatively, the average combined cost of rent and renter’s insurance rang up at around $2,000 — down more than 1% from 2024.
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“Households working on their budget will find it much easier to continue to rent than to go through the expenses of homeownership. However, they need to consider the equity and generational wealth they can build up by owning a home that they can’t by renting it,” said Joel Berner, Realtor.com senior economist, in a statement.
Those price distinctions aren’t evenly distributed across the nation. Depending on where a person lives, the region’s top metros saw slimmer or wider margins between renting and buying costs.
The metros with the smallest price gaps between renting and buying were mostly concentrated in the Rust Belt, including Detroit (2% difference), Philadelphia (10.3%) and Cleveland (11.5%).
The biggest cost gaps between renting and buying were seen in the western tech hubs of San Francisco, San Jose and Seattle, which saw buy-rent gaps of 190.7%, 185.6% and 119.5%, respectively.
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While it may be tempting to buy where the gap is smallest, multiple housing experts told Bankrate a financial win shouldn’t mean throwing caution to the wind.
“It’s important to be well-prepared, well-researched and well-supported by housing professionals that you assemble as your team,” Skylar Olsen, Zillow chief economist, said in a statement. “You are trying to find a great match in your home over the years to come. No rushing.”
