Owning a Home Now More Expensive Than Renting Nationwide

Study finds homeownership costs have outpaced renter costs in all major U.S. cities

Published on Feb. 10, 2026

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A recent study by LendingTree has found that owning a home is now more expensive than renting in all major U.S. cities. At the national level, homeowners with a mortgage now pay nearly 37% more per month than renters, an increase of $50 from 2023. This is due to higher home prices, borrowing costs, property taxes, and insurance premiums.

Why it matters

The rising costs of homeownership are contributing to keeping many would-be homeowners off the property ladder. Last year, the share of first-time homebuyers fell to a record low of 21%, while their typical age climbed to an all-time high of 40 years. This has major ramifications for individuals and the economy as a whole.

The details

Between 2019 and 2024, median housing costs grew by 25% for all homeowners in the U.S., while their income rose by only 23%. Within the same time frame, renters' median housing costs rose by 38%, while incomes increased by just 28%. Even in the tightest housing markets, renting is still cheaper than owning a home with a mortgage.

  • In 2024, the median monthly gross rent was $1,487, versus $2,035 for median monthly housing costs on homes with a mortgage.
  • Between 2019 and 2024, median housing costs grew by 25% for all homeowners in the U.S.

The players

LendingTree

An online loan marketplace that provides consumers with access to multiple lenders, loan products, and credit-based decisions.

Matt Schulz

Chief Consumer Finance Analyst at LendingTree.

National Association of Realtors (NAR)

A trade association that represents the real estate industry in the United States.

Harvard University's Joint Center for Housing Studies

A research center that provides an interdisciplinary perspective on housing issues in the United States.

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What they’re saying

“People are waiting longer to buy their first home. They're choosing not to buy a new home because they're reluctant to trade their current low-rate mortgage for one at today's higher rates.”

— Matt Schulz, Chief Consumer Finance Analyst (LendingTree)

“Some people are even becoming resigned to the fact that they'll never be able to own a home. That sort of decision has massive ramifications, not just for individuals but for the economy as a whole. Unfortunately, however, that doesn't seem likely to change anytime soon.”

— Matt Schulz, Chief Consumer Finance Analyst (LendingTree)

What’s next

According to the National Association of Realtors (NAR), first-time homebuyers in the U.S. might find a 'more welcoming housing market' this year, as mortgage rates are projected to fall around the 6 percent mark, potentially improving affordability for 1.6 million renters.

The takeaway

The rising costs of homeownership are pricing out many would-be homeowners, particularly first-time buyers, and contributing to a decline in homeownership rates. This has significant implications for individuals, communities, and the broader economy, underscoring the need for solutions to improve housing affordability.