"Collins, the best-selling author of Pathfinders and The Simple Path to Wealth, said the reasoning is simple: Buying a home "dramtically inflate[s]" your cost of living. While your mortgage payment and rent payment may be similar on paper, owning a home ends up costing more in the long run and comes with unexpected expenses-often referred to as the "hidden costs" of homeownership, like insurance, repairs, and updates."
"In fact, a LendingTree study also published this week shows renting is cheaper than owning in every large U.S. metro, with U.S. homeowners paying 36.9% more a month on their mortgage payment than renters. To put that in perspective, the median monthly gross rent was $1,487 in 2024, according to LendingTree, while the median monthly housing costs for homeowners with a mortgage was $2,035. That's nearly $550 more per month for owning a home, amounting to a difference of more than $6,500 annually."
Home prices are roughly 50% higher than before the pandemic while mortgage rates remain around 6%, and inflation plus tariffs have raised overall living costs. Higher purchase prices and persistent rates make homeownership unaffordable for many younger Americans. Choosing to rent can reduce monthly housing outlays and avoid carrying the recurring and unexpected expenses tied to ownership, such as taxes, insurance, repairs, maintenance, and updates. Data from LendingTree shows renters pay substantially less in major U.S. metros, with homeowners averaging about $550 more monthly and over $6,500 more annually in housing costs.
Read at Fortune
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