New analysis finds homeowners with mortgages pay about 37% more per month — roughly $550 extra, or $6,500 a year.
In cities like San Francisco, New York, and Los Angeles, owning can cost $1,100–$1,500+ more per month than renting.
Treat the savings as a “mock mortgage” by auto-saving or investing the difference to build wealth and prep for buying later.
According to a recent LendingTree study, Americans with a mortgage pay 36.9% more per month than renters on average.
Median rent nationwide is $1,487, compared to $2,035 in median monthly homeownership costs. That’s a difference of $548 every month, or $6,576 more per year to own.
Top cities with the biggest rent vs buy gaps
Here are the metro areas where owning is especially expensive compared to renting:
- San Francisco, CA: Rent ~$2,435 • Owning $4,000+ → $1,565/month more
- Bridgeport, CT: Rent ~$1,895 • Owning ~$3,322 → $1,427/month more
- New York, NY: Rent ~$1,851 • Owning ~$3,260 → $1,409/month more
- San Jose, CA: Rent ~$2,827 • Owning $4,000+ → $1,173/month more
- Los Angeles, CA: Rent ~$2,114 • Owning ~$3,255 → $1,141/month more
Areas with the smallest gap, but still in renting’s favor
- Phoenix, AZ: Rent ~$1,819 • Owning ~$2,003 → $184/month more
- Orlando, FL: Rent ~$1,487 • Owning ~$1,744 → $257/month more
- Columbia, SC: Rent ~$1,200 • Owning ~$1,471 → $271/month more
These aren’t tiny numbers — even in the “closest” markets, owning still costs more every month.
If you’re renting right now, play offense
Consider being intentional with your monthly “rent savings” by investing it.
For example, if owning would cost you $2,000/month, but your rent is $1,500, don’t let that $500 disappear every month.
Instead, automatically move the difference into one of these:
- A high-yield savings account (future down payment)
- A home repair fund (so future costs don’t shock you)
- Or investments if your timeline is longer
This not only helps you build wealth but will quickly let you know if you can financially handle a mortgage payment (if owning a home is your goal).
Why home ownership still matters
Even though all the numbers point to renting being cheaper, owning a home still offers benefits that go way beyond a lower monthly payment.
Stability and the “American Dream”
For many people, owning a home represents putting down roots and having control over your space.
You don't need a landlord's permission to do small renovations or changes, and can truly make the home your own. That sense of permanence and security is a big reason homeownership remains a long-term goal for many families.
Pride of ownership
There can be a real emotional payoff to owning a home. Homeowners often feel more connected to their neighborhoods and more invested in maintaining their property.
For some, that pride and independence are worth the higher upfront costs.
Equity builds long-term wealth
Unlike rent, mortgage payments help you build equity.
Over time, that equity can become a powerful financial tool. You can use it to help fund any major renovations, cover emergencies, or even pay for major life expenses if necessary.
Retirement security
Owning a home outright by the time you retire can significantly reduce your living expenses.
Without a monthly rent or mortgage payment, retirees often have more financial breathing room. Some also use home equity later in life by downsizing or borrowing against it.
Timing is everything
Homeownership usually makes the most financial sense if you plan on staying put for several years.
Buying and selling too quickly can wipe out gains due to closing costs and fees. But long-term owners typically come out ahead.