Cost Differences Between Homeownership and Renting Narrows – NMP
Industry News

Cost Differences Between Homeownership and Renting Narrows

Jan 30, 2020

The gap between the median monthly costs of homeownership and home renting were separated by less than $300 in the fourth quarter of last year, according to new data from Realtor.com.
 
The monthly cost to purchase the median home was $1,600 during the fourth quarter while the median monthly rent in that period was $1,319. On average, the cost of buying the median home accounted for 30 percent of the national median income, while renting accounted for 25 percent.
 
Realtor.com also determined it was cheaper to buy than rent in 16 percent of the 593 counties with populations of 100,000 or more, up from 12 percent one year earlier. And it was cheaper to rent than buy in 84 percent of the nation's largest counties, most notably New York City, San Francisco and Los Angeles.
 
"The move toward a more balanced equation is good news for home sellers during this spring home buying season as more people, especially the large cohort of millennials who turn 30 this year, begin to weigh the cost of buying versus renting," said Realtor.com Senior Economist George Ratiu. "Due to a combination of factors, we saw the monthly cost to buy a home fall one percent year-over-year, while rents increased four percent during the same time frame."
 
About the author
Phil Hall
Link copied
Published
Jan 30, 2020
Get the NMP Daily
Regulation and Compliance
Fannie Mae AI Governance Deadline Arrives Aug. 6

Seller/servicers using artificial intelligence in origination or servicing must have formal policies, oversight, and vendor controls in place

Fannie Mae’s artificial intelligence and machine-learning governance requirements take effect Thursday, Aug. 6, giving approved seller/servicers a final deadline to formalize how the technology is used across mortgage origination and servicing.The requirements apply when a s...

Continue reading
Analysis and Data
Higher Mortgage Rates Shrink Purchase Demand, Expand Buyer Leverage

Pending sales fell to their lowest level since early April, but lower asking prices and reduced competition give originators more options to structure deals for qualified borrowers

Higher mortgage rates are thinning the purchase pipeline, even as lower asking prices and reduced competition give borrowers still in the market more leverage.Seasonally adjusted U.S. pending home sales totaled 322,739 during the four weeks ending July 26, their lowest level...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Industry News
The Fed Held. The Mortgage Market Got A Warning.

Three policymakers favored an immediate hike, while Warsh welcomed higher bond yields and offered no clear path toward mortgage-rate relief

Industry News
Jul 30, 2026
New Study Finds UWM's 'All-In' Triggered Industrywide Pricing Spillovers

Research shows wholesale competitors responded to the 2021 Rocket ban by lowering mortgage rates,

Industry News
Jul 15, 2026
First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest

Industry News
Jul 10, 2026
Mortgage Star Conference Honors Women Shaping The Future Of Mortgage Leadership

MWLC honors leaders driving innovation, mentorship, and growth across the mortgage industry

Industry News
Jul 09, 2026
June Jobs Report Improves Mortgage Rate Outlook

Slower hiring strengthens bonds and eases concerns over additional Fed tightening

Industry News
Jul 02, 2026
NEXA Founder Mike Kortas Launches evoLend To Help Originators Retain Borrowers

New Fannie Mae-, Freddie Mac- and Ginnie Mae-approved mortgage servicer aims to keep originators connected to borrowers through servicing data, payoff visibility and retention tools

Industry News
Jul 02, 2026