“That’s correct—based on a recent Zillow study, in 22 out of the 50 largest metropolitan areas, monthly mortgage payments have now dipped below the cost of renting (refer to the chart below):”
As mortgage rates have eased from their recent peak, home prices have stabilized, and inventory has increased, affordability has improved considerably. When you combine these factors, it’s now often cheaper to buy a home than to rent in many parts of the country.
This is significant, especially if you’ve been renting for a while. And even if your city isn’t on this list yet, don’t worry—things are changing rapidly, and your area could soon follow suit.
Talking to a local real estate agent about current trends in your market could be a game-changer. With expert insights, you might discover that what once seemed out of reach is now within your budget.
Now, while this study compares monthly rent to a mortgage’s principal and interest (excluding the full monthly payment), it’s worth considering the bigger picture. As Zillow points out, owning a home comes with additional costs like property taxes, insurance, utilities, and maintenance. These should be part of your overall budget.
But remember, renters have extra costs too—like renters’ insurance, utilities, and parking fees. So, while crunching the numbers might seem tedious, it’s worth exploring this equation now more than ever.
Grab your calculator and connect with your agent, because the takeaway is this: you might be in a better position to afford a home than you were just a few months ago.
As Zillow’s Senior Economist, Orphe Divounguy, explains:
“… for those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth through home equity—something renters miss out on. With mortgage rates falling, it’s a great time to reassess your affordability and see if buying makes more sense than renting.”
Whether you’re in one of the metros where the tide has already turned or elsewhere, now’s the time to consult a local real estate expert and get the ball rolling.
With rates dropping and more homes entering the market, you’ll want to be ready to resume your search before others jump in.
Bottom Line:
If you’re tired of renting and curious about whether buying a home is the right move in today’s shifting market, let’s sit down and do the math together. It may be the perfect time to explore your options.