The 15 most renter-friendly US cities, where tenants save $1,200 or more a month compared to homeowners, according to SmartAsset
- Renting is cheaper than owning in many cities due to high prices and mortgage rates.
- SmartAsset ranked 343 cities on monthly cost differences between renting and owning a home.
- In cities like Los Angeles and New York, renters can save thousands per month vs. homeowners.
Owning a home is a great way to grow long-term wealth. Paying off the mortgage every month builds equity in the property, and home prices tend to appreciate — since 2000, national median home values have climbed from around 170,000 to 420,000.
But these days, becoming a homeowner is more expensive. With prices at all-time highs and mortgage rates sitting above 7%, housing affordability is near its lowest levels since the 1980s. That means in many places, it's cheaper per month to rent versus own.
In a recent analysis, financial information site SmartAsset compiled data from the US Census Bureau's American Community Survey and ranked 343 cities on how favorable they are to renters. Cities were listed in order of the monthly difference that renters pay versus homeowners.
To calculate monthly payments for renters, SmartAsset combined median rent and utilities payments. For homeowners, the median costs of mortgage payments, utilities, insurance, taxes, and HOA fees, if necessary, were considered.
Below, we've listed the 15 cities where renters save the most a month compared to homeowners.
Monthly rent + utilities: $2,086
Monthly cost for homeowners: $3,304
How much renters save per month: $1,218
Monthly rent + utilities: $1,973
Monthly cost for homeowners: $3,200
How much renters save per month: $1,227
Monthly rent + utilities: $1,596
Monthly cost for homeowners: $2,829
How much renters save per month: $1,233
Monthly rent + utilities: $1,851
Monthly cost for homeowners: $3,092
How much renters save per month: $1,241
Monthly rent + utilities: $2,410
Monthly cost for homeowners: $3,712
How much renters save per month: $1,302
Monthly rent + utilities: $1,688
Monthly cost for homeowners: $2,991
How much renters save per month: $1,303
Monthly rent + utilities: $1,877
Monthly cost for homeowners: $3,250
How much renters save per month: $1,373
Monthly rent + utilities: $1,713
Monthly cost for homeowners: $3,132
How much renters save per month: $1,419
Monthly rent + utilities: $1,788
Monthly cost for homeowners: $3,239
How much renters save per month: $1,451
Monthly rent + utilities: $1,985
Monthly cost for homeowners: $3,457
How much renters save per month: $1,472
Monthly rent + utilities: $2,009
Monthly cost for homeowners: $3,512
How much renters save per month: $1,503
Monthly rent + utilities: $1,391
Monthly cost for homeowners: $2,896
How much renters save per month: $1,505
Monthly rent + utilities: $1,838
Monthly cost for homeowners: $3,395
How much renters save per month: $1,557
Monthly rent + utilities: $2,308
Monthly cost for homeowners: $4,000
How much renters save per month: $1,692
Monthly rent + utilities: $2,009
Monthly cost for homeowners: $4,000
How much renters save per month: $1,991