For average-sized homes, buying a home is usually a better deal than renting, says a new study by LendingTree, an online lending resource, which compared monthly rental and mortgage payments for homes in the 50 largest U.S. metros.
“Renting can be the best option if a person is not planning on staying in one area for a very long time or does not have enough cash for a down payment,” LendingTree notes in its study. “But buying a home can be a good long-term investment.”
Researchers found that Miami, Orlando, Fla., and Virginia Beach, Va., are the metros where rent payments are the most expensive when compared to mortgage payments. Median mortgage payments are, on average, $215 cheaper than median rent payments in these metros.
Four of the top 10 metros where monthly rents are higher than monthly mortgage payments were located in Florida. A recent Harvard University study found that too few rental units and low wages have been driving up Florida’s rental affordability crisis and, making it among the toughest in the nation.
The 10 metros where monthly mortgage payments are the cheapest than monthly rent payments in the nation, according to LendingTree’s study, are:
1. Miami
- Median monthly rent payment: $1,477
- Median monthly mortgage payment: $1,215
- Difference between median monthly mortgage and median monthly rent payment: $262
2. Orlando, Fla.
- Median monthly rent payment: $1,263
- Median monthly mortgage payment: $1,036
- Difference between median monthly mortgage and median monthly rent payment: $227
3. Virginia Beach, Va.
- Median monthly rent payment: $1,318
- Median monthly mortgage payment: $1,163
- Difference between mortgage and rent: $155
4. Tampa, Fla.
- Median monthly rent payment: $1,192
- Median monthly mortgage payment: $1,072
- Difference between mortgage and rent: $120
5. Denver
- Median monthly rent payment: $1,362
- Median monthly mortgage payment: $1,252
- Difference between mortgage and rent: $110
6. Las Vegas
- Median monthly rent payment: $1,198
- Median monthly mortgage payment: $1,102
- Difference between mortgage and rent: $96
7. Washington, D.C.
- Median monthly rent payment: $1,819
- Median monthly mortgage payment: $1,727
- Difference between mortgage and rent: $92
8. Jacksonville, Fla.
- Median monthly rent payment: $1,140
- Median monthly mortgage payment: $1,048
- Difference between mortgage and rent: $91
9. Riverside, Calif.
- Median monthly rent payment: $1,369
- Median monthly mortgage payment: $1,280
- Difference between mortgage and rent: $89
10. Charlotte, N.C.
- Median monthly rent payment: $1,121
- Median monthly mortgage payment: $1,037
- Difference between mortgage and rent: $84
Source: “LendingTree Compares Renting and Owning a Home in the 50 Largest Metropolitan Areas in the U.S.,” LendingTree (Feb. 27, 2019)
