LOS ANGELES, CA — Renting stayed cheaper than buying in every major U.S. metro in August, according to a Zillow analysis of the 50 largest housing markets. The gap was wide enough to matter for households weighing whether to keep renting or take on the costs of ownership.
Zillow found the typical U.S. rent at $1,948 a month, while the typical new homeowner faced a monthly payment of $3,014 after mortgage costs, taxes and insurance. That leaves renters ahead by $1,066 a month, or $12,792 over a year.
The comparison also showed that buying generally required a higher income. Zillow said a household would need about $77,919 a year to afford the typical rental, while the income needed for a typical mortgage with 10% down was more than $120,500.
Zillow Says the Gap Held Across All 50 Major Metros
The company’s analysis did not find a single major metro where the typical rent topped the typical cost of buying a home. That means the cost advantage for renting was not confined to one region, one coast or one price tier…