In many metro areas, renting might be the sensible answer
Renting is cheaper than buying in many metro areas, according to a new report by LendingTree.
LendingTree compared monthly rental prices and monthly mortgage payments for homes in the 50 largest metropolitan areas in the nation to determine the difference between the cost of renting a home and the price of owning one.
Median rents compared to median mortgages are cheapest in Louisville, Milwaukee and Oklahoma, according to LendingTree. Median rent costs are an average of $310 cheaper than median mortgage costs in these areas.
Areas where monthly rent payment is lower than monthly mortgage payments according to the report:
Louisville
Median monthly rent payment: $866
Median monthly mortgage payment: $1,195
Difference between median monthly rent and median monthly mortgage payment: -$329
Milwaukee
Median monthly rent payment: $925
Median monthly mortgage payment: $1,225
Difference between median monthly rent and median monthly mortgage payment: -$301
Oklahoma
Median monthly rent payment: $900
Median monthly mortgage payment: $1,200
Difference between median monthly rent and median monthly mortgage payment: -$300
On the flip side, rent payments are the most expensive when compared to mortgage payments in Miami and Orlando, Fla.; and Virginia Beach, Va. Median mortgage payments are an average of $215 cheaper than median rent payments within these metros.
Metros where monthly mortgage payments are lower than monthly rent payment:
Miami
Median monthly rent payment: $1,477
Median monthly mortgage payment: $1,215
Difference between median monthly mortgage and median monthly rent payment: $262
Orlando, Fla.
Median monthly rent payment: $1,263
Median monthly mortgage payment: $1,036
Difference between median monthly mortgage and median monthly rent payment: $227
Virginia Beach, Va.
Median monthly rent payment: $1,318
Median monthly mortgage payment: $1,163
Difference between median monthly mortgage and median monthly rent payment: $155
Monthly rents are higher than monthly payments in four metros in Florida. Low wages and a shortage of rental units pushed Florida’s rental affordability crisis to become the worst in the nation, according to a housing study from Harvard University.
