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Top 10 cities where renters pay more than homeowners – and where they pay less

In California cities, it often costs more to buy than to rent, and in Florida cities, it often costs more to buy than to rent. (iStock)

Mortgage and rental costs vary across the country, with some areas paying astronomical rents while others face high monthly mortgage payments.

For example, in some Bay Area cities, owning a home costs at least $2,000 more than renting. Smart Asset Survey It was discovered: New Jersey homeowners often pay more than double what renters do.

But renters in cities in Arizona and Florida often pay hundreds of dollars more in rent than they pay on their mortgage.

If you’re thinking about buying a home in today’s market, you can explore your mortgage options by visiting Credible and comparing rates and lenders in minutes.

71% of Americans will wait for interest rates to fall before buying a home: Survey

Cities where homeowners pay more than renters

According to a Smart Asset study, residents in the following 10 cities are likely to pay more to own a home than they would to rent.

Berkeley, California

In Berkeley, an expensive city, monthly rent is high, but it’s nothing compared to the cost of a mortgage: Monthly rent averages just over $2,000, while monthly mortgage payments average $4,000.

San Francisco, California

Another expensive city in the Bay Area is San Francisco, where monthly rent averages $2,308, making it slightly more expensive than Berkeley. Mortgage payments are just as high there, at $4,000 a month.

Oakland, California

While California has many pricey markets, the cost of homeownership is high in most cities across the state: Oakland’s average rent is just under $2,000 at $1,838, and the average monthly mortgage payment is just about $3,400.

Elizabeth, New Jersey

The first New England city on the list is Elizabeth, New Jersey, where monthly rent averages $1,391, but mortgage payments average $2,896.

Glendale, California

Just outside of Los Angeles is Glendale, another city where homeowners have to pay more to own a home: homeowners pay an average of $3,512, while renters save nearly $1,500 with an average monthly payment of $2,009.

Pasadena, California

In Pasadena, California, renters pay an average of just under $2,000 per month, while homeowners shell out nearly $3,500 per month.

Los Angeles, California

Of course, owning a home in Los Angeles is expensive: Most residents pay an average monthly mortgage payment of $3,239, while renters pay an average of $1,788.

Sandy Springs, Georgia

Georgia is just one of several Southern states where homeowners pay more in rent than renters: In Sandy Springs, the average monthly rent is $1,713, but the average monthly mortgage payment is more than $3,000.

Seattle, Washington

Seattle is one of the most expensive cities in the Northwest for both renters and homeowners, with the average monthly rent costing $1,877 and the average monthly mortgage payment being $3,250.

New York, New York

No state in the Northeast is more expensive than New York: New York City homeowners spend an average of $2,991 on mortgage payments, while renters pay an average of $1,688 per month.

To see if you qualify for a mortgage based on your current credit score and salary, Credible allows you to compare multiple mortgage lenders at once.

Americans typically spend about 24% of their income on mortgage payments.

Cities where renters pay more than homeowners

Owning a home can pay off in certain states, especially in southern states like Arizona and Florida, where renting is especially expensive, and SmartAsset found that these cities are the most expensive for renters.

Surprise, Arizona

In Surprise, Arizona, renters pay about $400 more than homeowners. The median monthly rent is $2,064, while homeowners pay an average of $1,696. The median monthly mortgage is just over $455,000.

San Tan Valley, Arizona

In San Tan Valley, Arizona, renters pay an average of $277 more than buyers. The average mortgage payment for an average apartment in the city is $1,566, while rent is $1,843.

Lehigh Acres, Florida

In Lehigh Acres, there isn’t much difference between renting and buying: Renters pay an average of $1,598 in rent, while homeowners pay an average of about $1,431. The median price of a home in the city is just under $300,000.

Brandon, Florida

Renters in Brandon, FL pay an average of $155 more than renters, with the average rent being $1,718, while the average homeowner pays $1,563 per month.

Gilbert, Arizona

In Gilbert, the difference between renting and buying is less than $150, but the difference grows over the years: Renters pay an average of $2,064 per month, while homeowners pay a little less, $1,918.

Cape Coral, Florida

Cape Coral residents pay roughly the same amount for rent compared to a mortgage, but the difference still favors homeowners: On average, homeowners pay $1,694 in monthly housing costs compared to $1,801 for renters.

Peoria, Arizona

The median home price for homeowners in Peoria, AZ is $493,400, and the average mortgage payment is $1,785, a difference of $75 compared to the average renter’s payment of $1,860.

Meridian, Idaho

Idaho is relatively affordable compared to states with multiple large cities, but in Meridian, some renters are paying higher rent than homeowners: The median monthly rent is $1,789, but the mortgage is a little lower at $1,739.

Spring Hill, Florida

Another city in Florida with slightly higher rent prices is Spring Hill, where renters pay an average of $1,273 and homeowners pay $1,253. Home prices are relatively affordable, averaging $281,100.

Palm Bay, Florida

Palm Bay has the smallest difference between rent and mortgage payments on the SmartAsset list at just $20: Renters pay an average of $1,438 while buyers pay $1,420.

If you’re looking for the right mortgage rate, head over to Credible. Credible’s free online tools make it easy to compare multiple lenders and get pre-approved rates in just minutes.

New construction remains popular, as most Americans believe now is a bad time to buy an existing home.

Do you have a finance-related question but don’t know who to ask? Email a trusted money expert email address: Your question might be answered in Credible’s Money Expert column.

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