If the dream of owning a single-family home feels out of reach, you’re not alone—and there’s a silver lining: renters are saving an average of over $1,000 a month compared to homeowners.
In the nation’s top 20 single-family rental markets, it remains more affordable to rent than to own when you factor in monthly mortgage payments and maintenance costs for a comparable starter home.
A recent report from John Burns Research & Consulting reveals that purchasing a starter single-family home now costs an average of $1,091 more per month than renting a similar property. Including other property types, the savings for renters narrow slightly to $1,067, according to Realtor.com®’s economic research team.
“No surprise here, it’s still more expensive monthly to buy a single-family home than it is to rent one,” says Danielle Nguyen, vice president of research at John Burns.
Although the gap between renting and buying has shrunk slightly compared to last year, it remains far above the historical national average of $233. The last time owning was cheaper than renting was back in 2016. It almost happened during the early days of the COVID-19 pandemic but fell just short.
For now, those renting in these markets can take comfort in the financial cushion—and maybe invest those savings elsewhere.
Click HERE for full article