These 32 U.S. Cities Make Buying a Home Cheaper Than Renting—Are You Living in One of Them?

In a surprising twist amid the still-challenging U.S. housing market, a recent analysis has revealed 32 metropolitan areas where buying a home is cheaper than renting in 2025. This marks a significant shift, given recent years where rising interest rates and high home prices made renting the more affordable choice for many Americans.

According to a comprehensive Redfin report, buyers in these cities can expect lower monthly mortgage payments than what they’d pay in rent for comparable properties. The change is largely due to stabilizing home prices, slightly declining mortgage rates, and persistently high rent prices.

Where Buying Beats Renting in 2025

Some of the cities topping the list include:

• Detroit, Michigan – Buyers pay 24% less monthly compared to renters.
• Cleveland, Ohio – Known for its affordable housing stock and low price-to-rent ratio.
• Philadelphia, Pennsylvania – Offers a 7% saving for homeowners.
• Houston, Texas – Slightly more favorable for buyers in 2025 than renters.

Other notable cities include New Orleans, Birmingham, Memphis, and Indianapolis, where purchasing a home remains a practical financial choice.

What’s Driving This Trend?

The affordability of buying over renting in these cities is shaped by several key factors:

Mortgage Rates Easing

Although rates remain higher than pre-pandemic lows, the average 30-year fixed mortgage rate has dropped to 6.62%, down from 6.88% a year earlier, according to Freddie Mac. While not drastic, this relief in rates helps bring monthly payments down for buyers.

High Rents Nationwide

Rents have continued to rise across many metro areas. The combination of limited rental inventory and demand from those priced out of buying has driven up costs, making homeownership look more favorable in some markets.

Price Stabilization

While national home prices have increased—up 2.9% year-over-year with the median reaching $424,430—certain cities have seen more price moderation, making homeownership more accessible.

Cities That Still Favor Renting

Despite this positive outlook in 32 metros, renting remains more affordable in 96% of U.S. cities, according to a report by ATTOM. Major cities like San Francisco, Los Angeles, and New York continue to have extremely high housing prices and mortgage costs that outpace rent.

Expert Tips for Prospective Buyers

Thinking about buying in one of these more affordable cities? Here are a few expert tips to keep in mind:

• Check local property taxes and insurance rates: These can significantly affect your monthly cost. Use tools like SmartAsset’s calculator to estimate monthly payments accurately.
• Look into first-time homebuyer programs: States and local governments often offer incentives. You can search programs by state via HUD.gov.
• Understand the full cost of ownership: Maintenance, HOA fees, and utilities add up—plan accordingly.

Long-Term Benefits of Homeownership

While affordability varies by region, owning a home provides long-term value and equity building that renting does not. With careful financial planning, buyers in the right markets may find 2025 a golden opportunity to invest in property and potentially save money each month.

Conclusion

With the real estate landscape shifting in surprising ways, prospective homeowners may find relief in these 32 cities where monthly mortgage payments come in lower than average rent.

While the broader national trend still leans toward renting as the more affordable option, savvy buyers in select metro areas can finally tip the scales in their favor.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.