Many financial experts say owning rather than renting a home is a good way to build wealth. If you’re in that camp, there’s some good news: Personal finance website LendingTree found that in many desirable U.S. cities — including Miami, Dallas, Denver, and Las Vegas — the area’s median monthly mortgage payment is less than the median monthly rent. Overall, the analysis found that 20 out of the 50 metro areas looked at had lower median monthly mortgage payments than rent. According to LendingTree, four of the top 10 are in Florida, where low wages and too few rental units are major factors in Florida’s “rent affordability crisis,” according to LendingTree.
It’s important to note that LendingTree’s analysis did not consider down payments, saving for which can be one of the biggest obstacles aspiring homeowners face. As CNBC reported based on a 2018 analysis by HotPads, “for the average renter buying the median-priced home in America, it will take about 6½ years to save for a 20 percent mortgage down payment.” But if you’re planning or looking to buy, here are the US metro areas that boast cheaper median monthly mortgage payments than median monthly rent payments, according to LendingTree: 10.
Charlotte, North Carolina Median rent: $1,121 Median mortgage: $1,037 Difference between rent and mortgage: $84 9. Riverside, California Median rent: $1,369 Median mortgage: $1,280 Difference between rent and mortgage: $89 8. Jacksonville, Florida Median rent: $1,140 Median mortgage: $1,048 Difference between rent and mortgage: $91 7. Washington, D.C. Median rent: $1,819 Median mortgage: $1,727 Difference between rent and mortgage: $92 6. Las Vegas, Nevada Median rent: $1,198 Median mortgage: $1,102 Difference between rent and mortgage: $96 5. Denver, Colorado Median rent: $1,362 Median mortgage: $1,252 Difference between rent and mortgage: $110 4. Tampa, Florida Median rent: $1,192 Median mortgage: $1,072 Difference between rent and mortgage: $120 3. Virginia Beach, Virginia Median rent: $1,318 Median mortgage: $1,163 Difference between rent and mortgage: $155 2. Orlando, Florida Median rent: $1,263 Median mortgage: $1,036 Difference between rent and mortgage: $227 1. Miami, Florida Median rent: $1,477 Median mortgage: $1,215 Difference between rent and mortgage: $262 Other cool cities that have a lower monthly median mortgage payment include Houston, Phoenix, Salt Lake City, Atlanta, San Antonio, Austin, Memphis and Dallas.
