Owning a home now costs 28% more than renting in Miami | Real Estate

With housing prices and mortgage rates still on the higher end, many prospective South Florida homeowners are facing a difficult reality: irenting continues to cost less than owning.

A recent LendingTree analysis found that renting is cheaper than buying a home in all 100 of the largest U.S. metropolitan areas, including Miami.

Housing affordability has become a concern for many across the nation. High home prices have persisted, placing significant financial pressure on buyers, especially first-time purchasers.

According to the study, homeowners with a mortgage now spend about 37% more per month than renters. This gap reflects not only higher home prices, but also rising interest rates, property taxes, insurance, and maintenance costs.

Census data from 2024 shows the median monthly gross rent nationwide was just under $1,500, while the average monthly cost for a mortgaged home exceeded $2,000. This is a significant rise compared to the previous year, as ownership costs climbed more quickly than rents.

The disparity is especially apparent in major metropolitan areas, which were the focus of the study. In 22 of the 100 largest metro areas, owning a home costs at least 50% more per month than renting when utilities, fees, and taxes are included.

In the Miami metro area specifically, owning a home costs roughly 28% more than renting, LendingTree found.

“The cost disparity here could be enough to convince someone that they’ll never be able to own a home in some areas, and — unfortunately — they may be right,” said Matt Schulz, LendingTree’s chief consumer finance analyst, in a statement.

As a result, some hopeful buyers may be forced to redirect their efforts to more affordable cities or delay their plan to purchase altogether.

Looking ahead, policymakers have proposed legislation with the goal of lowering mortgage rates and incentivizing home purchases. Nonetheless, analysts warn that easing the affordability crisis will likely take time, since systemic challenges in the housing market persist.

For the full analysis, click here.