{"id":473850,"date":"2026-09-24T04:54:16","date_gmt":"2026-09-24T04:54:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/473850\/"},"modified":"2026-09-24T04:54:16","modified_gmt":"2026-09-24T04:54:16","slug":"cities-where-youll-save-the-most-by-renting-instead-of-buying-a-home","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/473850\/","title":{"rendered":"Cities where you’ll save the most by renting instead of buying a home"},"content":{"rendered":"

\"Saving \"Saving Saving on rent in NYC by… living with nuns?<\/a> <\/p>\n

New York is the most expensive city in the country to live, and many young professionals are looking to save rent costs by living with nuns! FOX 5 New York’s Gabriella Ortiz is one of these young professionals, and she joined Adam Llorens on LiveNOW from FOX to chat more about her experience.<\/p>\n

Renting a home is significantly cheaper than buying one in every major U.S. metro area in August, according to a new analysis.<\/p>\n

But where will residents save the most money by\u00a0renting instead of buying<\/a>?<\/p>\n

Real estate company\u00a0Zillow<\/a> analyzed 50 of the largest metro cities,\u00a0comparing two households with identical incomes making different housing choices.<\/p>\n

For homebuyers, Zillow assumed a homeowner would make a 10% down payment and purchase a home with a fixed-rate 30-year mortgage and bear all costs of homeownership: mortgage payments, property taxes, insurance, and closing costs at both purchase and sale.<\/p>\n

Meanwhile, the renter would pay a monthly rent payment and renter’s insurance.<\/p>\n

Renting costs less in every major U.S. market <\/p>\n

By the numbers:<\/p>\n

The data found that the typical U.S. rent was $1,948 a month in August, compared with $3,014 for a typical new homeowner’s monthly mortgage payment, taxes and insurance.\u00a0<\/p>\n

That’s a difference of $1,066 a month, or $12,792 a year.<\/p>\n

\"\" <\/p>\n

A real estate sign outside of a house for rent on April 20, 2026 in Albuquerque, New Mexico. (Credit: Al Drago\/Getty Images) <\/p>\n

In fact, the monthly savings from renting over buying was not limited to one region or price point. In each of the 50 largest U.S. metros, the typical rent was lower than the typical monthly payment for a new homeowner.\u00a0<\/p>\n

The analysis also found that buying generally required a higher income. A household needs about $77,919 in annual income to afford the typical U.S. rental, compared with more than $120,500 to afford a typical mortgage with 10% down.<\/p>\n

Renting even more favorable in high-cost, coastal markets <\/p>\n

Dig deeper:<\/p>\n

The savings for renting were largest in high-cost coastal markets. Renters in San Jose saved an average of $7,883 a month (94,596 a year) compared with buyers,\u00a0<\/p>\n

This was followed by San Francisco at $5,413 per month, Los Angeles at $4,441 and San Diego at $4,235.<\/p>\n

RELATED: Home prices fall in most major US cities as housing market cools: See where<\/a><\/p>\n

Despite these findings,\u00a0the least affordable metro areas for rents still resided in high-cost coastal markets: New York (40.6%), Miami (36.9%), Los Angeles (34.0%), Riverside (31.2%) and San Diego (30.5%).<\/p>\n

Meanwhile,\u00a0the most affordable metro areas for rents were Austin (18.3%), Raleigh (18.3%), Salt Lake City (18.3%), Minneapolis (19.7%) and St. Louis (19.8%).<\/p>\n

Cities where you\u2019ll save the most money annually by renting San Jose, CaliforniaSan Francisco, CaliforniaLos Angeles, CaliforniaSan Diego, CaliforniaSeattle, Washington <\/p>\n

See the\u00a0full report here<\/a>.<\/p>\n

Typical US rent rises <\/p>\n

Big picture view:<\/p>\n

The typical U.S. rent rose 2.5% from a year earlier, while the monthly cost for buyers increased more quickly.\u00a0Since the beginning of the pandemic, rents have increased by 38.5%, the data found.<\/p>\n

Zillow said renting may offer a financial advantage for households planning to stay in a home for five years or less, though the decision also depends on factors such as flexibility, maintenance costs and the stability of homeownership.<\/p>\n

The Source: The information for this story was provided by Zillow\u2019s report “Renting Is $1,066 Cheaper Per Month Than Buying and Investing It Pays Off (August Rent Report).” See the full methodology here. This story was reported from Los Angeles.<\/p>\n

Real Estate<\/a>U.S.<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"Saving on rent in NYC by… living with nuns? New York is the most expensive city in the…\n","protected":false},"author":2,"featured_media":473851,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[7948,100,388,101,103,102,104,106,105,1181],"class_list":["post-473850","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-francisco","tag-consumer","tag-news","tag-real-estate","tag-san-francisco","tag-san-francisco-headlines","tag-san-francisco-news","tag-sf","tag-sf-headlines","tag-sf-news","tag-us"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/473850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=473850"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/473850\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/473851"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=473850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=473850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=473850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}