Renting is More Affordable Than Buying Across All Major US Markets
In all 50 major U.S. metropolitan areas, the cost of renting remains lower than that of homeownership, according to Zillow data from September 2026. The typical rent in August was $1,948 per month compared to a total monthly home-buying payment (including mortgage, taxes, and insurance) of $3,014 — resulting in an average savings of $1,066 for renters each month or $12,792 annually. This financial cushion can be invested; at the 10-year Treasury yield rate, it could generate additional returns such as $322 in the first year and up to $8,041 over five years. The savings are most pronounced in high-cost coastal markets like San Jose, where renters save an average of $7,883 per month compared to home buyers. Over a year, this translates into potential investment returns as high as $2,381 for San Jose renters and up to $1,635 for those in San Francisco. The affordability gap has widened due to rising mortgage costs outpacing rent increases by more than four times over the past six months. Zillow's analysis highlights that renting is often a financially sound decision — especially for households planning stays of five years or less. Beyond monthly savings, renters also avoid hidden home-buying expenses like closing costs and maintenance.
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Topics: financial planning homeownership costs rent Zillow data