The outlook for first-time home buyers in the US may seem bleak with high borrowing costs, home prices, and inflation. This may lead many prospective buyers to continue renting, as it\u2019s generally seen as more affordable. But is renting truly the most cost-effective option? We crunched the numbers and found that in several cities across the US, it is still possible to achieve your homeownership dreams without depleting your savings. In some cities, it\u2019s even possible to transition from renting to owning while saving money in the process. <\/p>\n\n\n\n
Zoocasa analyzed data for 111 markets across the US and compared monthly rental prices and monthly mortgage payments for the median single-family home in each. Additional costs for each were not considered, such as utilities or property taxes. Rental price numbers were sourced from Zumper\u2019s<\/a> June national rent report, while the monthly mortgage payments were calculated using Nerd Wallet\u2019s Mortgage Payment Calculator<\/a> assuming an 8% down payment, a 30-year amortization, and a fixed rate of 6.78%<\/a>. According to the National Association of Realtor\u2019s 2023 Profile of Home Buyers and Sellers<\/a>, the typical down payment for first-time buyers was 8%. Median single-family home prices were sourced from the National Association of Realtors<\/a>. <\/p>\n\n\n