Throughout the United States, many people believe that renting is significantly cheaper than owning a house. This is actually only true in some select cities—meaning you could be paying more for a temporary lease than you would for reaping the long-term financial benefits of homeownership!
To find the top places where owning a home is cheaper than renting, financial research firm SmartAsset recorded rent and mortgage data in the 100 largest metro areas throughout the country. Here are the top 5 cities where owning is cheaper than renting:
- Little Rock, Arkansas
Average monthly mortgage payment: $496
Average monthly rent payment: $1,146
Money saved by buying: $650/month
- New Orleans, Louisiana
Average monthly mortgage payment: $648
Average monthly rent payment: $1,276
Money saved by buying: $628/month
- Gary, Indiana
Average monthly mortgage payment: $558
Average monthly rent payment: $1,136
Money saved by buying: $578/month
- Baton Rouge, Louisiana
Average monthly mortgage payment: $561
Average monthly rent payment: $1,127
Money saved by buying: $566/month
- Greenville, South Carolina
Average monthly mortgage payment: $485
Average monthly rent payment: $1,008
Money saved by buying: $523/month
Of course, these numbers are based on current market averages, so it’s important to compare market prices yourself or with a local lender prior to making your decision. If you’re looking to switch from paying monthly rental fees to periodic mortgage payments to save some extra cash, or would like to learn more about the mortgage process in general, contact one of our mortgage specialists today—we have officers listed in 3 of these 5 locations!
