First-time homebuyers in the U.S. face high borrowing costs, home prices, and inflation, which makes renting seem more affordable. But it turns out renting is not always the most cost-effective option. In some cities, transitioning from renting to owning can actually save money. According to online real estate platform Zoocasa, there are 12 U.S. cities where owning a home is actually cheaper than renting. Peoria, Ill., and South Bend, Ind., top the list, with mortgage payments of just $761 and $1,077, respectively. In Peoria, the monthly mortgage payment is $289 less than rent, while in South Bend, the difference is $55.
New York, NY has the largest gap between monthly rent and mortgage payments at $781, but it also has some of the highest average rents and mortgage payments in the country, making it a challenging city for both renters and buyers. Pittsburgh, PA, and Syracuse, NY are two more affordable cities for first-time home buyers thanks to their low median home prices. In Pittsburgh, the monthly cost of renting a 2-bedroom apartment is $1,550 while the average monthly mortgage payment is $1,240, a $310 difference. Similarly, in Syracuse, the monthly cost of renting a 2-bedroom apartment is $1,500, while the average monthly mortgage payment is $310 lower at $1,190.
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