Bankrate Reports Renting Increasingly Cheaper Than Buying in Most Metros

(Stock photo courtesy of Mike Sorohan)

Renting remains cheaper than buying a home in all 50 of the largest U.S. metros, with the difference between the two growing in 38 metros since last year, according to Bankrate, New York.

Bankrate compared average monthly mortgage payments to average monthly rent for all homes across all 50 of the largest metros in the United States to determine whether renting or buying is more affordable in the short term.

Bankrate’s Rent Vs. Buy report found the average monthly mortgage payment for a median-priced home ($425,583, per Redfin as of February) in the U.S., including average property taxes and homeowners insurance, rose 2.4% in 2024 to $2,768 in 2025. In comparison, rents have remained relatively stable, with average national monthly rent down less than 2 percentage points (1.7%) from last year after adjusting for inflation ($2,000 in 2025).

On average, the study found that Americans are paying 38% less per month to rent a home compared to buying one.

“In the short term, renting continues to be the more affordable option in the 50 largest U.S. metros,” Bankrate Analyst Alex Gailey said. “Over the last year, average mortgage payments increased while average rents either declined or remained stable in nearly all the metros we analyzed. Millions of Americans continue to be priced out of homeownership today because of rising mortgage rates, home prices, property taxes and insurance rates, even as housing inventory shows signs of improvement.”

The report noted the five metros with the biggest cost gaps between renting and buying are all in the western U.S.

“In comparison, the metros with the smallest price gaps between renting and buying are mostly concentrated in the South and Midwest, where there tends to be a lower cost of living and more affordable home prices,” the report said.

Gailey noted the rent or buy decision is heavily influenced by where you live. “Big city dwellers are better off renting than buying a home, particularly in pricey coastal metros,” she said. “However, in cheaper areas of the country, it’s a lot easier to justify a home purchase right now because the cost differences between renting and buying are much smaller. Homeowners may pay more upfront, but they also generate equity, hedge themselves against rent increases and otherwise enjoy the intangibles that come with homeownership.”