Although both home prices and rental prices are on the rise, in every single U.S. state, homeowners with a mortgage spend more money per month than renters on housing. That’s according to data from the U.S. Census Bureau’s 2013-2017 American Community Survey five-year estimates, which tracks median housing costs across the country.
Exactly how much more money owners pay varies by state. In New Jersey, the discrepancy between the median monthly cost for renters and those with a mortgage is more than $1,100. In Arkansas, the disparity is just over $300.
Though the Census Bureau doesn’t offer a reason why, other analyses have shown that owning is more expensive than renting because owners need to cover related costs such as maintenance, property taxes, repairs and insurance, in addition to handling their monthly mortgage payments, and those keep rising.
“The monthly costs of buying and owning a home that you occupy are up 14 percent over the past year, more than three times the annual increase in rent rates nationally, according to realtor.com. Rents are up just 4 percent,” CNBC’s Diana Olick reported in 2018.
Millions of Americans, especially young people, are currently locked out of homeownership. In addition to having to save up a substantial down payment, prospective home-buyers need to be prepared to pay closing costs, inspection fees and other expenses.
The silver lining to being a renter, then, is that you’re probably saving money.
That said, although buying your own place is more expensive than renting on a monthly basis, owning is an investment that can pay off in the long run. Depending on where you live, your house’s value can increase significantly over time, which could lead to a nice payout whenever you choose to sell.
For those who plan to stay in the same place long-term, owning gives you a stable living situation. And, once the mortgage is paid off, you’ve eliminated a major monthly expense and you can put that money toward other financial goals.
The difference between the median monthly cost for renters and those with a mortgage in every U.S. state, using data from the U.S. Census Bureau’s American Community Survey — click to enlarge
Below, check out the full data on how much more it costs to own than to rent in each state.
Median monthly cost for homeowners with a mortgage: $1,149
Median rent cost: $747
Difference between owning and renting: $402
Median monthly cost for homeowners with a mortgage: $1,862
Median rent cost: $1,200
Difference between owning and renting: $662
Median monthly cost for homeowners with a mortgage: $1,354
Median rent cost: $972
Difference between owning and renting: $382
Median monthly cost for homeowners with a mortgage: $1,039
Median rent cost: $709
Difference between owning and renting: $330
Median monthly cost for homeowners with a mortgage: $2,206
Median rent cost: $1,358
Difference between owning and renting: $848
Median monthly cost for homeowners with a mortgage: $1,623
Median rent cost: $1,125
Difference between owning and renting: $498
Median monthly cost for homeowners with a mortgage: $2,065
Median rent cost: $1,123
Difference between owning and renting: $942
Median monthly cost for homeowners with a mortgage: $1,533
Median rent cost: $1,076
Difference between owning and renting: $457
Median monthly cost for homeowners with a mortgage: $1,432
Median rent cost: $1,077
Difference between owning and renting: $355
Median monthly cost for homeowners with a mortgage: $1,351
Median rent cost: $927
Difference between owning and renting: $424
Median monthly cost for homeowners with a mortgage: $2,303
Median rent cost: $1,507
Difference between owning and renting: $796
Median monthly cost for homeowners with a mortgage: $1,195
Median rent cost: $792
Difference between owning and renting: $403
Median monthly cost for homeowners with a mortgage: $1,633
Median rent cost: $952
Difference between owning and renting: $681
Median monthly cost for homeowners with a mortgage: $1,109
Median rent cost: $782
Difference between owning and renting: $327
Median monthly cost for homeowners with a mortgage: $1,202
Median rent cost: $740
Difference between owning and renting: $462
Median monthly cost for homeowners with a mortgage: $1,310
Median rent cost: $801
Difference between owning and renting: $509
Median monthly cost for homeowners with a mortgage: $1,131
Median rent cost: $713
Difference between owning and renting: $418
Median monthly cost for homeowners with a mortgage: $1,234
Median rent cost: $825
Difference between owning and renting: $409
Median monthly cost for homeowners with a mortgage: $1,357
Median rent cost: $808
Difference between owning and renting: $549
Median monthly cost for homeowners with a mortgage: $1,954
Median rent cost: $1,311
Difference between owning and renting: $643
Median monthly cost for homeowners with a mortgage: $2,102
Median rent cost: $1,173
Difference between owning and renting: $929
Median monthly cost for homeowners with a mortgage: $1,251
Median rent cost: $824
Difference between owning and renting: $427
Median monthly cost for homeowners with a mortgage: $1,506
Median rent cost: $906
Difference between owning and renting: $600
Median monthly cost for homeowners with a mortgage: $1,105
Median rent cost: $740
Difference between owning and renting: $365
Median monthly cost for homeowners with a mortgage: $1,225
Median rent cost: $784
Difference between owning and renting: $441
Median monthly cost for homeowners with a mortgage: $1,344
Median rent cost: $751
Difference between owning and renting: $593
Median monthly cost for homeowners with a mortgage: $1,315
Median rent cost: $773
Difference between owning and renting: $542
Median monthly cost for homeowners with a mortgage: $1,422
Median rent cost: $1,017
Difference between owning and renting: $405
Median monthly cost for homeowners with a mortgage: $1,878
Median rent cost: $1,052
Difference between owning and renting: $826
Median monthly cost for homeowners with a mortgage: $2,398
Median rent cost: $1,249
Difference between owning and renting: $1149
Median monthly cost for homeowners with a mortgage: $1,244
Median rent cost: $809
Difference between owning and renting: $435
Median monthly cost for homeowners with a mortgage: $2,064
Median rent cost: $1,194
Difference between owning and renting: $870
Median monthly cost for homeowners with a mortgage: $1,261
Median rent cost: $844
Difference between owning and renting: $417
Median monthly cost for homeowners with a mortgage: $1,326
Median rent cost: $775
Difference between owning and renting: $551
Median monthly cost for homeowners with a mortgage: $1,247
Median rent cost: $764
Difference between owning and renting: $483
Median monthly cost for homeowners with a mortgage: $1,181
Median rent cost: $766
Difference between owning and renting: $415
Median monthly cost for homeowners with a mortgage: $1,594
Median rent cost: $988
Difference between owning and renting: $606
Median monthly cost for homeowners with a mortgage: $1,446
Median rent cost: $885
Difference between owning and renting: $561
Median monthly cost for homeowners with a mortgage: $1,803
Median rent cost: $957
Difference between owning and renting: $846
Median monthly cost for homeowners with a mortgage: $1,202
Median rent cost: $836
Difference between owning and renting: $366
Median monthly cost for homeowners with a mortgage: $1,255
Median rent cost: $696
Difference between owning and renting: $559
Median monthly cost for homeowners with a mortgage: $1,196
Median rent cost: $808
Difference between owning and renting: $388
Median monthly cost for homeowners with a mortgage: $1,484
Median rent cost: $952
Difference between owning and renting: $532
Median monthly cost for homeowners with a mortgage: $1,455
Median rent cost: $948
Difference between owning and renting: $507
Median monthly cost for homeowners with a mortgage: $1,563
Median rent cost: $945
Difference between owning and renting: $618
Median monthly cost for homeowners with a mortgage: $1,728
Median rent cost: $1,166
Difference between owning and renting: $562
Median monthly cost for homeowners with a mortgage: $1,763
Median rent cost: $1,120
Difference between owning and renting: $643
Median monthly cost for homeowners with a mortgage: $997
Median rent cost: $681
Difference between owning and renting: $316
Median monthly cost for homeowners with a mortgage: $1,399
Median rent cost: $813
Difference between owning and renting: $586
Median monthly cost for homeowners with a mortgage: $1,389
Median rent cost: $828
Difference between owning and renting: $561
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