10 Cities Where Mortgage Payments Are Cheaper Than Rent

Dated: 03/14/2019

Views: 52

Image title

Many financial experts say owning rather than renting a home is a good way to build wealth.

If you're in that camp, there's some good news: Personal finance website LendingTree found that in many desirable U.S. cities — including Miami, Dallas, Denver and Las Vegas — the area's median monthly mortgage payment is less than the median monthly rent.

Overall, the analysis found that 20 out of the 50 metro areas looked at had lower median monthly mortgage payments than rent. Four of the top 10 are in Florida, where low wages and too few rental units are major factors in Florida's "rent affordability crisis," according to LendingTree.

It's important to note that LendingTree's analysis did not take into account down payments, saving for which can be one of the biggest obstacles aspiring homeowners face. As CNBC reported based on a 2018 analysis by HotPads, "for the average renter buying the median-priced home in America, it will take about 6½ years to save for a 20 percent mortgage down payment."

But if you're planning or looking to buy, here are the US metro areas that boast cheaper median monthly mortgage payments than median monthly rent payments, according to LendingTree:

10. Charlotte, North Carolina 
Median rent: $1,121 
Median mortgage: $1,037 
Difference between rent and mortgage: $84

9. Riverside, California 
Median rent: $1,369 
Median mortgage: $1,280 
Difference between rent and mortgage: $89

8. Jacksonville, Florida 
Median rent: $1,140 
Median mortgage: $1,048 
Difference between rent and mortgage: $91

7. Washington, D.C. 
Median rent: $1,819 
Median mortgage: $1,727 
Difference between rent and mortgage: $92

6. Las Vegas, Nevada 
Median rent: $1,198 
Median mortgage: $1,102 
Difference between rent and mortgage: $96

5. Denver, Colorado 
Median rent: $1,362 
Median mortgage: $1,252 
Difference between rent and mortgage: $110

4. Tampa, Florida 
Median rent: $1,192 
Median mortgage: $1,072 
Difference between rent and mortgage: $120

3. Virginia Beach, Virginia 
Median rent: $1,318 
Median mortgage: $1,163 
Difference between rent and mortgage: $155

2. Orlando, Florida 
Median rent: $1,263 
Median mortgage: $1,036 
Difference between rent and mortgage: $227

1. Miami, Florida 
Median rent: $1,477 
Median mortgage: $1,215 
Difference between rent and mortgage: $262

Other cool cities that have a lower monthly median mortgage payment include Houston, Phoenix, Salt Lake City, Atlanta, San Antonio, Austin, Memphis and Dallas.

LendingTree used U.S. Census Bureau data to determine the median cost to own and rent in the nation's 50 largest metro statistical areas. You can find LendingTree's full analysis here.

Receive a Free market analysis.

Image title

Blog author image

Agnes Gray and Ellen Mitchel

Miami's melting pot of architecture and design attracted both Ellen and Agnes to pursue careers in real estate. Understanding current market trends, they are able to evaluate each property at its true....

Latest Blog Posts

10 Cities Where Mortgage Payments Are Cheaper Than Rent

Many financial experts say owning rather than renting a home is a good way to build wealth.If you're in that camp, there's some good news: Personal finance website LendingTree found

Read More

Americas Third Safest City Is Right Here In South Florida

Weston is the third-safest city in the entire country, according to a report from security system review site SafeHome.com Wherever you go around here, Florida Man may be lurking, but he

Read More

How Does A Veteran Or Non Veteran Applicant Affect A VA Loan

A very popular question I’ve been getting is how being a veteran or non-veteran applicant affect a VA loan? How does it work or does it work? William Caban is here with us to answer these types of

Read More

Your Personal Sanctuary 6 Bathroom Trends For 2019

Now that 2019 is well underway it’s time to dig into the current trends and discover the new ideas people are raving about this year. One big room to focus on in 2019? Bathrooms. These rooms are

Read More