Is It Cheaper to Rent or Buy in 2025? A City-by-City Guide
Is It Cheaper to or Buy in 2025? A City-by-City Guide
Trying to decide if you should rent or buy in 2025? You’re not alone. With prices changing and interest rates still high, it’s a tough call.
The answer depends on where you live, how long you plan to stay, and what you can afford. This guide breaks down what’s cheaper in major U.S. cities to help you figure it out.
Why This Matters Now
In 2025, money is tighter for a lot of people. Here’s what’s going on:
- Mortgage rates are high.
- Home prices have slowed down in some places.
- Rents are all over the place—up in some cities, down in others.
- Paychecks aren’t always keeping up.
So you’ve got to run the numbers before making a move.
What to Think About
To compare renting and buying, look at:
- Monthly costs: vs. mortgage, taxes, and upkeep
- Upfront costs: Security deposit vs. down payment
- Equity: Buying builds value over time
- Flexibility: Renting is easier if you plan to move
- Investment: Owning a home can grow your wealth, if prices go up
Where Renting or Buying Is Cheaper in 2025
Here’s a simple look at six big cities.
New York City
- : $3,750/month
- Buy: $4,500/month (on a $720K home)
Better to rent. Homes cost a lot, and taxes and fees are high.
Austin
- : $2,000/month
- Buy: $2,550/month (on a $460K home)
Renting saves money now. But if prices go up later, buying might pay off.
Miami
- : $2,800/month
- Buy: $3,300/month (on a $560K home)
Renting is cheaper. Buying might make sense long-term, but not right away.
Chicago
- : $2,100/month
- Buy: $1,950/month (on a $350K home)
Better to buy. It’s cheaper each month, and you build equity.
Los Angeles
- : $3,500/month
- Buy: $5,000/month (on an $830K home)
Renting wins here. Homes are pricey, and the costs add up.
Atlanta
- : $1,950/month
- Buy: $2,100/month (on a $370K home)
Close call. If you plan to stay, buying might work out better.
What’s Changing in 2025
Some trends are shaping this year’s housing market:
- More people work from home, so they move to cheaper cities.
- Younger buyers are waiting longer to buy homes.
- Big investors are buying homes, especially in the South, which can raise prices.
When Buying Makes Sense
Buying is usually better if:
- You plan to stay put for at least 5 years
- You have money saved for a down payment
- You want to build value over time
- You’re in a city where prices are stable or rising
You can use a rent vs. buy calculator to compare.
When Renting Is the Smarter Move
Renting may be better if:
- You’re not sure how long you’ll stay
- You don’t have savings for a home
- You live in a high-cost city
- You want less responsibility
Quick Pros and Cons
| Renting | Buying | |
|---|---|---|
| Cost | Often cheaper short-term | More upfront costs |
| Flexibility | Easier to move | You’re locked in |
| Equity | Builds nothing | Builds over time |
| Upkeep | Landlord handles it | You’re in charge |
| Stability | can go up | Fixed monthly payments (usually) |
Which Is Cheaper in Your City?
Here’s a quick recap:
| City | Cheaper Option |
|---|---|
| New York | |
| Austin | (for now) |
| Miami | |
| Chicago | Buy |
| Los Angeles | |
| Atlanta | Toss-up |
There’s no one answer for everyone. But if you know your goals, budget, and how long you’ll stay, the numbers can guide you.
