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Homeownership vs Renting Costs: 2022 US Census Data

Homeownership vs Renting Costs: 2022 US Census Data

Diversity in US Homeownership About 40% of Renters Believe that Homeownership is Impossible

When deciding between buying a home or renting, understanding the costs involved is crucial. In this article, we will explore the Homeownership vs Renting Costs in various US cities to help you make an informed decision. Whether you’re leaning towards renting or buy, this list from Yahoo! Finance can guide your choice.

Homeownership vs Renting Costs

Cities Where Homeowners Pay More Than Renters

In some cities, the cost of owning a home significantly exceeds the cost of renting. Let’s look at a few examples:

Seattle, Washington

Seattle Housing Market Trendshomeownership vs renting cost
Seattle, Washington | Canva
  • Median monthly gross rent: $1,877
  • Median monthly housing costs for homeowners: $3,250

In Seattle, homeowners pay nearly twice as much as renters. The higher costs reflect property values and living expenses in the city.

Los Angeles, California

million-dollar cities
Los Angeles, CA
  • Median monthly gross rent: $1,788
  • Median monthly housing costs for homeowners: $3,239

Los Angeles shows a similar trend, with homeowners paying much more than renters. High property prices and maintenance contribute to these expenses.

New York, New York

New York City Faces Record-Low Rental Vacancy Rates
New York City | Canva
  • Median monthly gross rent: $1,688
  • Median monthly housing costs for homeowners: $2,991

New York City is another example where owning a home is costlier than renting. The dense population and high demand for property drive these costs.

Elizabeth, New Jersey

  • Median monthly gross rent: $1,391
  • Median monthly housing costs for homeowners: $2,896

Elizabeth also follows this pattern. Homeowners here face higher monthly expenses compared to renters.

Cities Where Renters Pay More Than Homeowners

Contrastingly, some cities have higher rental costs than homeownership costs. Here are a few examples:

Surprise, Arizona

  • Median monthly gross rent: $2,064
  • Median monthly housing costs for homeowners: $1,696

In Surprise, renters pay significantly more than homeowners. Lower housing costs make homeownership a better financial option here.

Peoria, Arizona

  • Median monthly gross rent: $1,860
  • Median monthly housing costs for homeowners: $1,785

Peoria exhibits a similar trend, with rental costs exceeding homeownership expenses. This suggests favorable conditions for buying a home.

See Also
HUD Rental Assistance

Meridian, Idaho

  • Median monthly gross rent: $1,789
  • Median monthly housing costs for homeowners: $1,739

In Meridian, renting is more expensive than owning. The lower cost of homeownership attracts many to buy instead of rent.

Spring Hill, Florida

  • Median monthly gross rent: $1,273
  • Median monthly housing costs for homeowners: $1,253

Spring Hill shows only a slight difference between renting and owning, with renting being marginally more expensive. This close cost comparison gives potential homeowners more reason to buy.

Understanding the Homeownership vs Renting Costs in different cities can greatly influence your housing decision. Cities like Seattle, Los Angeles, and New York have higher homeownership costs, making renting a more economical option.

Conversely, places like Surprise and Peoria in Arizona offer cheaper homeownership costs, encouraging buying over renting. Always consider local market conditions, property values, and your financial situation before making a decision. Whether you choose to rent or buy, being informed will help you make the best choice for your lifestyle and budget.