25 US Cities Where Renting Is Now Cheaper Than Owning a Home

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The US cities’ housing markets have undergone tremendous shifts in recent years. As a result, it is now more economical to rent than own a house. This is partly due to home prices, increasing mortgage rates, and a change in the local economies. Here are 25 cities where it’s cheaper to rent than to own:

Atlanta, Georgia

Atlanta boasts an incredible job market, from film to technology to logistics. As the population has grown, so too has the demand for housing. The average rent for a two-bedroom apartment is $1,600, whereas the mortgage payment on a median-priced home of $330,000 averages around $2,100 per month, taking into account taxes and insurance. This means renting comes out to be about 24% cheaper than owning in Atlanta. With a median household income of $61,000, Atlanta’s renters spend about 32% of their income on housing compared to homeowners who spend 41% on mortgage payments.

Phoenix, Arizona

Phoenix has experienced rapid population growth over the past decade. Renting a three-bedroom home in Phoenix averages $1,800 per month while owning a median-priced home of $395,000 is approximately $2,500 per month. This creates a cost-saving difference of 28%, making renting more affordable. Renters in the city, on average, have a $63,000 median household income. They pay close to 34% for housing; homeowners pay about 47%.

Dallas, Texas

Dallas has a strong economy and major industries like technology, finance, and defense. An average two-bedroom apartment costs around $1,500 per month. Meanwhile, a mortgage payment on a median-priced home worth $360,000 is roughly around $2,100 per month, taking taxes and insurance into consideration. Renting is approximately 29% cheaper than owning in Dallas. With a median household income of $70,000, renters spend around 26% on housing, while homeowners spend 36%.

Las Vegas, Nevada

The average rent for a one-bedroom apartment in Las Vegas is around $1,300, while the monthly mortgage payment for a median-priced home of $375,000 is approximately $2,000. Renting is 35% cheaper than owning a home in this city. High property prices and expensive mortgage rates make it hard for many people to afford ownership. With a median household income of $56,000, renters in Las Vegas spend about 28% of their income on housing, while homeowners spend 43%.

Orlando, Florida

Orlando is a family-friendly city that thrives in the tourism business. The median rent for a two-bedroom apartment in Orlando is $1,500, with the average monthly mortgage for a median-priced home that costs around $340,000 being around $2,100. It is thus about 28% cheaper to rent in Orlando than owning a house. Rising property values, low housing inventory, and rising property taxes have all contributed to the affordability gap. The median household income in Orlando is $59,000, and renters spend about 30% of their income on housing, while homeowners spend 43%.

Tampa, Florida

Tampa has quickly become a hotspot for remote workers and retirees on Florida’s Gulf Coast. The average cost of a two-bedroom apartment in Tampa is around $1,600. Owning a median-priced home at $340,000 could run about $2,100 per month. There’s a 24% cost difference between renting and owning. With a median household income of $61,000, renters spend about 31% of their income on housing, compared to homeowners, who spend 41%.

Nashville, Tennessee

Nashville boasts a vibrant music and entertainment industry, increasing the demand for housing. The average rent for a two-bedroom apartment in Nashville is $1,700, while the mortgage payment for a median-priced home of $380,000 is approximately $2,400 per month. Renting is about 29% cheaper than owning in this city. At the median household income of $64,000, renter households in Nashville spent around 32% on housing, compared to 45% for homeowner families.

Charlotte, North Carolina

Charlotte is a major financial hub that has grown rapidly over the past few years. While a two-bedroom apartment fetches an average rent of $1,500 per month, the mortgage will run about $2,200 in a median-priced house selling at $350,000. This creates a 32% cost difference, which makes renting more cost-effective. Using a median household income level of $60,000, renters in Charlotte pay about 30% for housing compared to spending about 44% for homeowners.

Houston, TX

Houston is the fourth-largest city in the US and boasts an energy sector, a diversified economy, and diverse housing options. The average rent for a two-bedroom apartment is $1,400, and the mortgage payment on a median-priced home of $350,000 is approximately $2,100 per month. Renting is 33% cheaper than owning in Houston. With a median household income of $65,000, renters spend about 26% of their income on housing, compared to homeowners who spend 38%.

Indianapolis, Indiana

Indianapolis is known as the city of motorsports and affordable living. It would cost around $1,200 to rent a two-bedroom apartment in Indianapolis. The average mortgage payment for a median-priced home of $250,000 is approximately $1,800 per month. That makes renting about 33% cheaper than owning in Indianapolis. With a median household income of $55,000, renters in Indianapolis spend about 26% of their income on housing, while homeowners allocate 39%.

Kansas City, Missouri

Kansas City is known for its jazz heritage and its culture. The average two-bedroom apartment rents for $1,300, and the average monthly mortgage payment on a median-priced home priced at $290,000 is about $1,900. It is about 31% cheaper to rent in Kansas City than to own a home. At $55,000, the median household income, renters in Kansas City pay approximately 28% for housing compared to 41% for homeowners.

Columbus, Ohio

Columbus, Ohio, is known for its strong education, technology, and health sectors. An average two-bedroom apartment is $1,200; a monthly mortgage for a medium-priced home costs $275,000 to pay an amount of approximately $1,800. The monthly rent is almost 33% less compared to owning Columbus. With a median household income of $60,000, renters in Columbus spend about 24% of their income on housing, compared to homeowners who spend 36%.

Denver, Colorado

Denver has a thriving tech industry and an outdoor culture, and the population and housing market are growing. The average rent for a two-bedroom apartment is $2,100. The average mortgage payment for a median-priced home of $500,000 is about $2,800 per month. Renting in Denver is about 25% cheaper than owning a home. While Denver’s median household income is $80,000, renters spend about 31% on housing, while homeowners spend 42%.

Salt Lake City, Utah

Surrounded by breathtaking natural landscapes, Salt Lake City has become a hotbed of tech companies and outdoor enthusiasts. The average rent of a two-bedroom apartment in Salt Lake City is $1,700, while a monthly mortgage payment for a median-priced home of $450,000 is about $2,500. Compared to owning, renting costs about 32% less in Salt Lake City. Median household income is $70,000. The rental home accounts for about 29% of the house rental. The homeowner spends nearly about 43%.

Minneapolis, Minnesota

The Minneapolis economy is strong, especially in healthcare, education, and technology. The average rent of a two-bedroom apartment is $1,500, while the mortgage payment for the median-priced home of $350,000 is roughly around $2,100. Thus, renting is 29% cheaper than owning in Minneapolis. The median household is $65,000, and renters in Minneapolis spend about 28% compared to homeowners, who spend approximately 39%.

Cleveland, OH

Cleveland has a relatively lower cost of living than any other major city in the US. A two-bedroom apartment would cost an average of $1,100 per month. For a median-priced home costing about $230,000, the mortgage payment would be about $1,600 a month. The cost of renting is about 31% less than that of owning a home in Cleveland. The median household income is about $50,000, and the average renter in Cleveland will spend around 26% of their income on housing, compared to 38% by homeowners.

Richmond, Virginia

Richmond is known for its historical importance and growing technology industry. The average rent for a two-bedroom apartment is $1,300, while the mortgage payment for a median-priced home of $290,000 is around $1,900. Renting is about 31% cheaper than owning a home in Richmond. With the median household income at $61,000, rental costs here account for a mere 26% of renters’ income, while their counterparts spending 37% are homeowners.

Louisville, Kentucky

Louisville is famous for the Kentucky Derby and its cultural heritage, and it has seen growth in the technology and healthcare sectors. Two-bedroom apartments in Louisville cost about $1,200 a month; the mortgage payment on the median-priced home, at $240,000, is $1,700. Renting is 29% cheaper than owning. While the median household income in Louisville is $55,000, renters spend approximately 26% of their income on housing, and homeowners spend around 37%.

Pittsburgh, Pennsylvania

Pittsburgh is known for its tech industry and health care. The typical two-bedroom apartment rents in this town are $1,400. The equivalent mortgage payment on a home priced at $280,000 is $1,900. Renters save 26% there. The median household income in Pittsburgh is $60,000. Renters there spend about 28% of their income on housing, while homeowners spend up to 38%.

Austin, Texas

Besides being an emerging tech hub, Austin has a very popular live music scene and active cultural life. It has become one of the fastest-growing cities in the US. The average rent on a two-bedroom apartment is $1,800, and the mortgage payment for a median-priced home is $2,600 at $475,000. Renting is almost 31% cheaper compared to owning a home in Austin. With a median household income of $75,000, renters in Austin spend about 29% of their income on housing, while homeowners allocate about 41%.

Charlotte, North Carolina

Charlotte is the second-largest banking center in the US, with a healthy employment market and lower cost of living. The average two-bedroom rent is around $1,400, and a median-priced home at $350,000 has a mortgage payment of about $2,200. It’s 36% cheaper to rent rather than own in Charlotte. Compared with a $68,000 median household income, renters pay about 25% for housing, while the number is 40% for homeowners.

Albuquerque, New Mexico

Albuquerque is known for its scenic desert landscapes and vibrant arts scene, but it is also affordable compared to other Southwestern cities. The average rent for a two-bedroom apartment is $1,300, while the mortgage payment for a median-priced home of $300,000 is approximately $1,800. Renting is about 28% cheaper than owning a home in Albuquerque. The median household income is $54,000. That means renters pay around 29% of their income on housing while homeowners spend 40%.

Des Moines, Iowa

Known for a strong job market in finance, insurance, and healthcare, Des Moines has an affordable cost of living. A two-bedroom apartment costs an average of $1,200 per month, and a mortgage payment on a median-priced home of $250,000 is about $1,600. Renting in Des Moines is about 25% cheaper than owning. With a median household income of $60,000, renters in Des Moines spend about 24% of their income on housing, while homeowners spend about 32%.

Omaha, Nebraska

Omaha’s economy and housing market have been growing steadily, fueled by the city’s lively arts and food scene. The average rent for a two-bedroom apartment is $1,200, and the mortgage payment for a median-priced home of $275,000 is about $1,700. In Omaha, renting is about 29% cheaper than buying. With a median household income of $62,000, renters in Omaha spend about 26% of their income on housing, compared to homeowners, who spend 35%.

Boise, Idaho

Boise is known for its beautiful views, a growing tech industry, and now one of the fastest-growing cities in the US. An average two-bedroom apartment in Boise costs $1,500 monthly, with the mortgage payment for a median-priced home of $375,000 being around $2,300. Renting is 35% cheaper than owning a home in Boise. With a median household income of $60,000, renter households spend close to 30% on their housing, while homeowners spend around 40%.

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