The decision as to whether to rent or buy usually comes down to cost. Or, in this market, inventory and cost.
With rents hitting rock-bottom lows in many cities, LendingTree compared monthly rental and housing payments for homes with and without mortgages in the 50 largest metropolitan areas in the United States.
In doing so, LendingTree found that renting is usually cheaper than owning a home—until a homeowner has paid off their mortgage.
As reported by the New York Times, cities with the smallest rent to own difference include Memphis, Phoenix, Nashville, Atlanta and Las Vegas. In Orlando, on average, there’s only a $298 difference between median rent and median mortgage payment.
Not surprisingly, you won’t find any major California markets on the low end of the list.
According to LendingTree, San Francisco has one of the largest discrepancies in the country when it comes to rent vs own, with a $1,183 difference. San Jose, Los Angeles, San Diego and Sacramento all land on the high end of that list as well, as noted above.
Of course, renting may be cheaper but lacks the financial benefits in the long run. Buying can be a profitable long-term investment with tax benefits, so it’s advisable to keep your options (and eyes) open.