Real estate and mortgages
Rent vs Buy 2026: Renting Saves $1,105 a Month, but Buying Still Wins in These Cities
Renting is cheaper than buying every month in all 50 of the largest U.S. metros right now. But "cheaper every month" and "makes you richer" are different questions, and the answer to the second one depends heavily on your city and how long you stay.
Below: where the $1,105 number comes from, the cities with the biggest and smallest gaps, where buying pays off fastest and slowest, a Columbus versus Seattle comparison, and a three-question test for your own decision.
The national gap
Zillow's September 2026 report puts the typical rent at $1,932, up 2.7 percent from a year earlier, while the typical new buyer's monthly payment rose 5 percent to $3,037. A household needs about $77,278 a year to afford the typical rental and about $121,496 to afford the typical home; the median household would spend 26.3 percent of income on a new rental versus 41.3 percent on a new home.
Renting a house rather than an apartment narrows the gap: the typical single-family rent is $2,266, still $771 a month below the buyer's payment. Rental demand is up 19.2 percent in a year, 39.6 percent of Zillow rental listings offered concessions in September, and renters surveyed by the New York Fed put their own odds of ever owning at just under 35 percent.
Biggest and smallest gaps
Monthly buyer payment minus typical rent, September 2026 (our math from Zillow's metro table):
- Smallest: Pittsburgh $528, Birmingham $712, Memphis $723, Detroit $753, Cleveland $777
- Middle: Houston $1,027, Tampa $1,137, Atlanta $1,311, Dallas $1,546, Phoenix $1,680, Austin $2,093
- Biggest: Seattle $3,567, San Diego $4,341, Los Angeles $4,544, San Francisco $5,486, San Jose $8,033
Where buying pays off fastest
Zillow's breakeven model compares a buyer's equity and costs against a renter who invests the down payment and closing costs. In its June 2026 estimates, buying came out ahead nationally after about 5.9 years with 5 percent down and 6.0 years with 20 percent down. The fastest of the 50 largest metros were Columbus (about 3.5 years with 5 percent down, 4.1 with 20 percent), Memphis and Buffalo (roughly 3.7 to 4.2 years), then Indianapolis and Cincinnati, with Louisville just behind.
The slowest markets where buying still eventually wins were San Diego, Seattle, Austin, Los Angeles and Portland, at roughly 17 to 25 years. In San Francisco, San Jose and New Orleans, renting stayed ahead over the full 30 years, by about $583,000, $1.89 million and $3.39 million respectively with 20 percent down.
Down payment changes the path: 20 percent down produced the strongest 30-year result in every market, but 5 percent down sometimes reached breakeven sooner because less cash is tied up at the start. In Chicago, 20 percent down was both faster and better.
Columbus vs Seattle
Columbus: typical rent $1,525, new buyer payment $2,813, a gap of $1,288 a month, yet the fastest breakeven in Zillow's study at about 3.5 to 4.1 years.
Seattle: typical rent $2,250, new buyer payment $5,817, a gap of $3,567 a month, in the 17 to 25 year breakeven group.
The renter only wins if the savings are actually invested. Zillow estimates that $1,066 a month set aside, earning the 10-year Treasury rate, would total about $72,000 after five years. Zillow's comparison also leaves out the mortgage interest deduction and the home-sale capital gains exclusion, which would help buyers somewhat.
Your three-question test
- How long will you stay compared with your city's breakeven? Staying past it favors buying; leaving before it favors renting.
- Will you invest the monthly difference every month? If not, most of renting's advantage disappears.
- Is your local gap shrinking? Realtor.com flagged Oklahoma City, Orlando, Seattle, Miami, Tampa, Las Vegas and Nashville as markets where buying conditions are improving; in Orlando, buying a starter home cost only $19 a month more than renting one in July 2026.
Watch the video
Sources
- Zillow, September 2026 Rent Report, October 15, 2026: zillow.com
- Zillow, August 2026 Rent Report, September 16, 2026: zillow.com
- Zillow Research, Where Buying Pays Off Sooner, June 4, 2026: zillow.com
- Realtor.com, July 2026 Rental Report, August 17, 2026: realtor.com
- Realtor.com Economic Research on Freddie Mac PMMS (7.24 percent), October 29, 2026: realtor.com
- Yahoo Finance, More would-be homebuyers are considering renting instead (New York Fed survey), October 31, 2026: finance.yahoo.com
