Every month, over 45 million households in the U.S. pay rent. While this monthly cost is often lower than a mortgage payment, the total amount spent over several years is a significant expense that renters never recover. If this money could be redirected toward homeownership, would it be enough to cover a down payment?
Zoocasa calculated the total rent spent over five years in 43 cities from 2020 to 2025 using Rent.com’s average prices. The total sum was then compared to the 20% down payment on a median-priced single-family home in each respective city, using data from the National Association of Realtors. The results show that five years of rent is often more than enough to pay for a down payment on a single-family home, prompting an important financial question for long-term renters: could you have bought a home instead?
Five Years of Rent is Enough to Cover a Down Payment in These 27 Cities
Renting is often the more affordable option in the short term, but in the long term, monthly rental costs can add up to as much as $100,000 over five years—a sum that doesn’t build any equity in return. This adds a new perspective to the housing affordability discourse. By comparing yearly costs, renters can make a more informed decision on whether buying or renting is the more financially viable option for them.
For example, five years of rent is enough to cover a 20% down payment for a single-family home in 27 out of 43 analyzed cities, representing how costly rent can be over time. The gap between rent paid and a down payment is noticeably wide in more affordable cities.
From 2020 to 2025, the total rent paid is $20,000 more than a 20% down payment in Cleveland, Detroit, and Philadelphia. In Chicago, Atlanta, Tampa, St. Louis, and Buffalo, the difference is over $10,000.
But nowhere is the difference more apparent than in Pittsburgh, where total rent paid over five years is nearly enough to cover the costs of two down payments. Pittsburgh renters will have paid an average of $80,574 in rent from 2020 to 2025, while a down payment on a single-family home costs just $45,080—$35,494 less than rent.
It’s not only in affordable housing markets where renters have paid more in rent than they would have for a down payment. In Sacramento and Riverside, renters have paid more than the respective $110,000 and $119,500 needed for a 20% down payment over five years. Even in Miami, one of the most expensive housing markets in the country, renters have paid $5,012 more in rent than what they would have paid for a 20% down payment.
Not All Renters Can Afford a Typical Down Payment
In 16 cities, the total rent paid over five years is less than a 20% down payment on a single-family home, reflecting how difficult it can be for renters to transition into homeownership in high-cost-of-living cities.
San Jose is the most dramatic example of this. On average, a renter will have paid $152,106 in rent from 2020 to 2025, but this figure is $230,000 short of the 20% down payment of $384,000. Simply put, a typical down payment in San Jose is equal to over 10 years of rent. Unless a San Jose renter is earning above-average income, it will take an aggressive savings strategy to reach the down payment amount. Even if a prospective homebuyer decides to live at their parent’s home to save what would-be rent money towards a down payment, it will take a considerable amount of time.
Renters will have a similarly hard time saving in Salt Lake City, Denver, San Diego, Seattle, San Francisco, and Los Angeles, where a down payment is over $20,000 more than the total rent paid over five years. In these cities, high barriers to homeownership may make renting the more appealing and financially flexible option.
Interestingly, in Boston, which has one of the highest home prices on the East Coast, the difference between five-year rent expenses and a 20% down payment is only $356. A Boston renter will have paid, on average, $146,784 in rent over five years, while a 20% down payment on a single-family home costs $147,140. In this case, Boston renters should consider the financial benefits of investing in homeownership. If they’re already spending as much on rent as a potential down payment, the prospect of simultaneously building equity becomes more enticing.
Is Renting or Owning Right For You?
It can be challenging for renters to save for a down payment while also paying rent each month. In some cities, it may be nearly impossible, depending on your salary and cost of living. But understanding that the earlier you can get into the housing market, and the sooner you can start building equity, the more money you will save in the long run.
Deciding where to invest your money is a personal decision, though, and many renters prefer the flexibility and convenience of being a renter. Having a fixed amount to pay each month, not having to worry about maintenance, and getting access to amenities like a gym are all attractive advantages of renting. For some, these advantages outweigh the financial benefits of homeownership.
But for those still unsure of which housing strategy to adopt, analyzing all the data on renting and owning is useful. Many renters are unaware of how much money they spend each year on housing, giving them a hazy idea of their financial situation. Long-term renters should consider if continuing to rent is right for them, or if pivoting to homeownership makes more financial sense. This is especially true if long-term renters have accumulated sufficient savings and possess stable incomes.
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Sources:
Number of renter households: US Census. “Demographic Characteristics for Occupied Housing Units.” American Community Survey, ACS 1-Year Estimates Subject Tables, Table S2502, 2023
Median single-family home prices were sourced from the National Association of Realtors using Q4 2024 data.
Average rent prices were taken from January of each year using Rent.com data.
