Zillow Reports Renting is Cheaper than Buying in Major US Markets
According to Zillow's August rent report, the typical monthly cost of renting a home in the U.S. was $1,948 compared to $3,014 for buying, resulting in an average savings of $1,066 per month or $12,792 annually. Renting proved cheaper than buying across all 50 largest metropolitan areas, with San Jose showing the widest gap at a monthly saving of $7,883. The report highlights that buyer costs have risen faster than rents over recent months. Zillow also analyzed potential investment returns if renters invested their savings from not owning homes. At an average national difference of $1,066 per month and using the 2026 10-year Treasury yield rate of 4.68%, a renter could earn approximately $322 in first-year returns. Over five years with stable costs, cumulative savings plus investment returns might reach about $72,000. Multifamily rents increased by 1.9% year-over-year to an average of $1,774 per month and have risen significantly since the start of the pandemic. Single-family rents also saw a rise with annual growth at 3%. The affordability threshold for renting versus buying has widened as mortgage costs outpace rent increases.
Tickers: $ZG