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Renting is cheaper than owning in many cities due to high prices and mortgage rates.
SmartAsset ranked 343 cities on monthly cost differences between renting and owning a home.
In cities like Los Angeles and New York, renters can save thousands per month vs. homeowners.
Owning a home is a great way to grow long-term wealth. Paying off the mortgage every month builds equity in the property, and home prices tend to appreciate — since 2000, national median home values have climbed from around 170,000 to 420,000.
But these days, becoming a homeowner is more expensive. With prices at all-time highs and mortgage rates sitting above 7%, housing affordability is near its lowest levels since the 1980s. That means in many places, it's cheaper per month to rent versus own.
In a recent analysis, financial information site SmartAsset compiled data from the US Census Bureau's American Community Survey and ranked 343 cities on how favorable they are to renters. Cities were listed in order of the monthly difference that renters pay versus homeowners.
To calculate monthly payments for renters, SmartAsset combined median rent and utilities payments. For homeowners, the median costs of mortgage payments, utilities, insurance, taxes, and HOA fees, if necessary, were considered.
Below, we've listed the 15 cities where renters save the most a month compared to homeowners.
15. Torrance, California
An aerial view of Torrance Beach.
trekandshoot/Shutterstock
Monthly rent + utilities:$2,086
Monthly cost for homeowners:$3,304
How much renters save per month:$1,218
14. Burbank, California
Burbank, California
Lux Blue/Shutterstock
Monthly rent + utilities:$1,973
Monthly cost for homeowners:$3,200
How much renters save per month: $1,227
13. Yonkers, New York
Yonkers, New York.
Brian Logan Photography/Shutterstock
