The Cost of Renting vs. Owning a Home in Every State
- July 18, 2016
Housing is the biggest expense for many Americans, accounting for more than 30 percent of a household’s yearly expenditures, according to the Bureau of Labor Statistics. But housing costs can vary greatly, depending on where you live — and whether you’re a renter or owner.
To find out where your housing dollar will go the furthest, GOBankingRates surveyed the cost of renting versus owning a home in all 50 states and the District of Columbia. The study found it’s more expensive to own a home in only eight states and the District of Columbia, with renting the more expensive option in 42 states.
“Mortgage rates have been near historic lows for quite some time now,” said Svenja Gudell, chief economist of real estate and rental marketplace Zillow. “This makes those monthly payments lower than monthly rent.”
With rents so high, though, it can be difficult to save up for a down payment and make the jump to homeownership, she said. If you’re considering becoming a homeowner, click through to find out if you should own or rent a home in your state.
Renting vs. buying a home in Florida:
- Monthly rent in Florida: $1,695
- Monthly mortgage in Florida: $1,297
Rents have been rising in the Sunshine State — especially in South Florida where the population is growing and demand for rentals has increased, the Sun Sentinel reported in April.
In fact, Miami is the eighth-most expensive rental market in the U.S., according to the Zumper National Rent Report. More and more adults are living with roommates in Miami to offset high rents, Gudell said.