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If you are wondering what is cheaper – renting or paying for a mortgage, the answer is renting in each of the 50 largest metros in the country. In fact, according to a Lending Tree study, the average rent is $ 606 less per month.
But this does not mean that the rent is cheap. In San Jose, California, for example, rent is $ 1,098 less than a mortgaged home, but the average monthly rent is $ 2,249, one of the highest in the country, the study found. (Housing costs include utilities, fees, and taxes.)
In some cities, the difference in rental and ownership costs is much smaller. In Orlando, Florida, Tampa, Florida, and Indianapolis, for example, renters can save an average of $ 335 per month from ownership. (It’s worth noting that the median selling price of a home in Indianapolis is $ 208,000, well below the $ 1.28 million in San Jose.)
To find out the difference in cost between renting and paying off your mortgage, LendingTree used data from the 2019 U.S. Census Bureau’s 2019 American Community Survey with five-year estimates to determine the average cost of owning and renting a home in the country’s 50 largest statistical areas. They subtracted the median monthly home value in each metro for those with a mortgage from the average monthly gross rent in each metro.
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Here is the difference in rent and mortgage payments in the 30 US metro, in order of largest spread between the two, according to LendingTree.
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