Cost of Renting vs. Owning a Home in Every State

J. Arky

7 April 2024 at 11:00 am·8-min read

According to conventional financial wisdom, it’s more cost-efficient to own a home than to rent one. But with high home prices across the U.S., is that still the case?

To find out the more affordable housing option, GOBankingRates analyzed the average price of renting versus owning a home in all 50 states, plus the District of Columbia. The study found that in the majority of states, it is actually cheaper to rent than to buy — though this goes by monthly cost and does not take into account the equity you build through homeownership.

So, while it may be more beneficial in the long term to own a home, in the short term it is actually cheaper to rent in many places in the U.S. Here’s a cost breakdown of renting versus owning in every state.

SeanPavonePhoto / Getty Images/iStockphoto

Alabama

Average Home Value: $197,182.31
Average Monthly Rent: $1,481.03
Average Monthly Mortgage: $1,240.85
Cheaper Option: Owning

Explore More: 10 Things Frugal People Always Do When They First Buy a House
Check Out: Barbara Corcoran Says, ‘Forget About Florida,’ Move Here for Cheap Homes

Sponsored: Protect Your Wealth With A Gold IRA. Take advantage of the timeless appeal of gold in a Gold IRA recommended by Sean Hannity.

Alaska

Average Home Value: $330,682.23
Average Monthly Rent: $1,709.93
Average Monthly Mortgage: $2,080.96
Cheaper Option: Renting

Arizona

Average Home Value: $387,091.18
Average Monthly Rent: $2,295.38
Average Monthly Mortgage: $2,435.94
Cheaper Option: Renting

Arkansas

Average Home Value: $174,454.61
Average Monthly Rent: $1,290.56
Average Monthly Mortgage: $1,097.83
Cheaper Option: Owning

California

Average Home Value: $792,377.47
Average Monthly Rent: $2,937.75
Average Monthly Mortgage: $4,986.38
Cheaper Option: Renting

Colorado

Average Home Value: $599,580.84
Average Monthly Rent: $2,548.05
Average Monthly Mortgage: $3,773.12
Cheaper Option: Renting

For You: Barbara Corcoran Says Now Is the ‘Best Time’ To Buy a House: Here’s Why

DenisTangneyJr / Getty Images/iStockphoto

Connecticut

Average Home Value: $499,878.84
Average Monthly Rent: $2,240.56
Average Monthly Mortgage: $2,831.06
Cheaper Option: Renting

Delaware

Average Home Value: $413,557.83
Average Monthly Rent: $1,892.38
Average Monthly Mortgage: $2,602.49
Cheaper Option: Renting

District of Columbia

Average Home Value: $715,350.97
Average Monthly Rent: $2,447.11
Average Monthly Mortgage: $4,501.65
Cheaper Option: Renting

Florida

Average Home Value: $579,698.00
Average Monthly Rent: $2,464.03
Average Monthly Mortgage: $3,648
Cheaper Option: Renting

Georgia

Average Home Value: $247,686.31
Average Monthly Rent: $1,824.19
Average Monthly Mortgage: $1,558.67
Cheaper Option: Owning

Hawaii

Average Home Value: $934,097.87
Average Monthly Rent: $2,712.95
Average Monthly Mortgage: $5,878.21
Cheaper Option: Renting

Jennifer_Sharp / Getty Images/iStockphoto

Idaho

Average Home Value: $455,282.52
Average Monthly Rent: $1,714.24
Average Monthly Mortgage: $2,865.06
Cheaper Option: Renting

Discover More: I Retired Early: Why Real Estate Investing Was the Secret to My Success

Illinois

Average Home Value: $204,558.70
Average Monthly Rent: $1,676.93
Average Monthly Mortgage: $1,287.27
Cheaper Option: Owning

Indiana

Average Home Value: $212,932.99
Average Monthly Rent: $1,341.29
Average Monthly Mortgage: $1,339.97
Cheaper Option: Owning

Iowa

Average Home Value: $192,227.06
Average Monthly Rent: $1,170.67
Average Monthly Mortgage: $1,209.99
Cheaper Option: Renting

Kansas

Average Home Value: $167,193.04
Average Monthly Rent: $1,240.47
Average Monthly Mortgage: $1,052.13
Cheaper Option: Owning

Check Out: 5 Unnecessary Bills You Should Stop Paying in 2024

Kentucky

Average Home Value: $157,695.35
Average Monthly Rent: $1,305.90
Average Monthly Mortgage: $992.37
Cheaper Option: Owning

Louisiana

Average Home Value: $177,175.53
Average Monthly Rent: $1,371.23
Average Monthly Mortgage: $1,114.95
Cheaper Option: Owning

Maine

Average Home Value: $336,176.48
Average Monthly Rent: $2,119.46
Average Monthly Mortgage: $2,115.54
Cheaper Option: Owning

Maryland

Average Home Value: $441,073.23
Average Monthly Rent: $1,993.99
Average Monthly Mortgage: $2,775.64
Cheaper Option: Renting

Massachusetts

Average Home Value: $627,101.47
Average Monthly Rent: $2,551.18
Average Monthly Mortgage: $3,946.31
Cheaper Option: Renting

Michigan

Average Home Value: $241,988.81
Average Monthly Rent: $1,478.15
Average Monthly Mortgage: $1,522.82
Cheaper Option: Renting

Minnesota

Average Home Value: $294,745.34
Average Monthly Rent: $1,562.38
Average Monthly Mortgage: $1,854.81
Cheaper Option: Renting

Mississippi

Average Home Value: $148,034.05
Average Monthly Rent: $1,432.28
Average Monthly Mortgage: $931.57
Cheaper Option: Owning

Learn More: 6 Things Minimalists Never Buy — and You Shouldn’t Either

Missouri

Average Home Value: $224,190.56
Average Monthly Rent: $1,363.55
Average Monthly Mortgage: $1,410.82
Cheaper Option: Renting

Montana

Average Home Value: $406,553.60
Average Monthly Rent: $1,685.60
Average Monthly Mortgage: $2,558.41
Cheaper Option: Renting

Jacob Boomsma / Getty Images/iStockphoto

Nebraska

Average Home Value: $208,843.08
Average Monthly Rent: $1,280.24
Average Monthly Mortgage: $1,314.24
Cheaper Option: Renting

Nevada

Average Home Value: $449,802.73
Average Monthly Rent: $1,823.90
Average Monthly Mortgage: $2,830.58
Cheaper Option: Renting

New Hampshire

Average Home Value: $440,917.44
Average Monthly Rent: $2,128.70
Average Monthly Mortgage: $2,774.66
Cheaper Option: Renting

New Jersey

Average Home Value: $598,385.33
Average Monthly Rent: $2,488.33
Average Monthly Mortgage: $3,765.60
Cheaper Option: Renting

New Mexico

Average Home Value: $272,596.54
Average Monthly Rent: $1,408.38
Average Monthly Mortgage: $1,715.42
Cheaper Option: Renting

New York

Average Home Value: $450,550.64
Average Monthly Rent: $4,637.27
Average Monthly Mortgage: $2,835.28
Cheaper Option: Owning

North Carolina

Average Home Value: $296,107.28
Average Monthly Rent: $1,707.62
Average Monthly Mortgage: $1,863.38
Cheaper Option: Renting

North Dakota

Average Home Value: $219,648.05
Average Monthly Rent: $1,002.45
Average Monthly Mortgage: $1,382.23
Cheaper Option: Renting

Ohio

Average Home Value: $221,789.56
Average Monthly Rent: $1,462.05
Average Monthly Mortgage: $1,395.71
Cheaper Option: Owning

Oklahoma

Average Home Value: $153,233.18
Average Monthly Rent: $1,233.26
Average Monthly Mortgage: $964.29
Cheaper Option: Owning

Oregon

Average Home Value: $443,292.40
Average Monthly Rent: $1,908.67
Average Monthly Mortgage: $2,789.61
Cheaper Option: Renting

Pennsylvania

Average Home Value: $245,253.83
Average Monthly Rent: $1,562.01
Average Monthly Mortgage: $1,543.37
Cheaper Option: Owning

Rhode Island

Average Home Value: $529,788.13
Average Monthly Rent: $2,128.14
Average Monthly Mortgage: $3,333.92
Cheaper Option: Renting

South Carolina

Average Home Value: $265,894.80
Average Monthly Rent: $1,693.44
Average Monthly Mortgage: $1,673.26
Cheaper Option: Owning

South Dakota

Average Home Value: $277,156.35
Average Monthly Rent: $1,242.41
Average Monthly Mortgage: $1,744.13
Cheaper Option: Renting

Tennessee

Average Home Value: $257,620.56
Average Monthly Rent: $1,742.77
Average Monthly Mortgage: $1,621.19
Cheaper Option: Owning

Texas

Average Home Value: $289,286.22
Average Monthly Rent: $1,767.53
Average Monthly Mortgage: $1,820.46
Cheaper Option: Renting

Utah

Average Home Value: $511,211.47
Average Monthly Rent: $1,858.77
Average Monthly Mortgage: $3,217.02
Cheaper Option: Renting

Vermont

Average Home Value: $374,248.32
Average Monthly Rent: $2,514.63
Average Monthly Mortgage: $2,355.12
Cheaper Option: Owning

Virginia

Average Home Value: $312,503.76
Average Monthly Rent: $1,976.59
Average Monthly Mortgage: $1,966.56
Cheaper Option: Owning

Check Out: IRS Increases Gift and Estate Tax Exempt Limits — Here’s How Much You Can Give Without Paying

Washington

Average Home Value: $559,616.71
Average Monthly Rent: $2,109.42
Average Monthly Mortgage: $3,521.63
Cheaper Option: Renting

West Virginia

Average Home Value: $141,289.57
Average Monthly Rent: $1,096.26
Average Monthly Mortgage: $889.13
Cheaper Option: Owning

Wisconsin

Average Home Value: $301,960.82
Average Monthly Rent: $1,300.26
Average Monthly Mortgage: $1,900.22
Cheaper Option: Renting

Wyoming

Average Home Value: $403,251.27
Average Monthly Rent: $1,141.04
Average Monthly Mortgage: $2,537.63
Cheaper Option: Renting

More From GOBankingRates

This article originally appeared on GOBankingRates.com: Cost of Renting vs. Owning a Home in Every State

The Argus
This little known dash cam mistake could be invalidating your car insurance
Drivers have been warned that this little-known dash cam mistake could be invalidating their car insurance - find out how.
10 hours ago
Birmingham Live
Drivers urged to avoid triple car insurance hike by following nine rules
Experts have explained why car insurance costs are so high and what to do about it as some report their new quotes being two or three times as high
a day ago
Birmingham Live
HMRC to hit pet owners with tax bill that millions don't know about
Taxpayers are under siege like never before as allowances are cut or frozen and even pets across the country cannot escape the HMRC onslaught, according to experts.
a day ago
Birmingham Live
DWP confirms new powers to spy on benefit claimants' bank accounts
The Department for Work and Pensions says checks on claimants' accounts will form a key part of its battle against fraud through two key sets of legislation
5 hours ago
Evening Standard
When is the next interest rates announcement and will they increase?
The UK central bank began raising interest rates as the pandemic came to an end and energy costs began to rise
6 hours ago
Evening Standard
'Not a great start to the week' as two 'big six' lenders increase mortgage interest rates
Markets increasingly suggest the Bank of England is unlikely to cut interest rates until August
a day ago
The Guardian
Secret Thatcher-era memo undermines Sunak’s plan to scrap national insurance
Former chancellor Nigel Lawson, who PM cites as inspiration, warned merging NICs with income tax would ‘create many losers’
12 hours ago
Business Insider
It's going to be a massive week for the stock market
There are five major events to watch for this week, highlighted by a Fed meeting and the April jobs report.
19 hours ago
Benzinga
Cathie Wood Raises Her Bitcoin Prediction by $2.3 Million: What $1,000 Invested Could Be Worth By 2030
Ark Invest CEO Cathie Wood is known for making outlandish predictions about cryptocurrency. The predictions, which would result in small amounts of money appreciating into millions of dollars, are unlikely to come true, but they are still interesting to consider. Wood spoke at an investor day in New York in March, noting that the price of Bitcoin could reach $3.8 million by 2030. Don't Miss: If you invested $100 in DOGE when Elon Musk first tweeted about it in 2019, here’s how much you’d have to
3 hours ago
Fool.co.uk
2 FTSE 100 high dividend shares to consider in May
I'm building a list of the best FTSE 100 income shares to buy this month. Here are two I'm expecting can pay massive dividends in 2024 and beyond. The post 2 FTSE 100 high dividend shares to consider in May appeared first on The Motley Fool UK.
16 hours ago
Fool.co.uk
2 penny stocks this Fool thinks could deliver phenomenal returns!
Penny stocks are a risky but exciting asset class to invest in, prone to wild volatility. Our writer thinks he's found two with the potential for success. The post 2 penny stocks this Fool thinks could deliver phenomenal returns! appeared first on The Motley Fool UK.
a day ago
Fool.co.uk
Prediction: this will be the FTSE 100’s next great stock!
This FTSE 250 stock has more than doubled in value during the past five years. Our writer thinks it could become one of the FTSE 100's hottest stocks. The post Prediction: this will be the FTSE 100’s next great stock! appeared first on The Motley Fool UK.
a day ago
Fool.co.uk
3 of my top stocks to consider buying in May
With parts of the market looking expensive, Stephen Wright thinks a focus on quality is the way to go for investors buying stocks this month. The post 3 of my top stocks to consider buying in May appeared first on The Motley Fool UK.
7 hours ago
The Telegraph
Questor: We’ve made 40pc on this mining stock – is it time to sell?
Merger and acquisition fever is one reason why the London market, as benchmarked by the FTSE 100 index, is reaching new all-time highs, not least because the rash of bids for London-listed companies suggests they are going cheap, and trade and private equity buyers are looking to make the most of the value that is on offer.
22 hours ago
Fool.co.uk
2 FTSE 250 shares investors should consider for a £1,260 passive income in 2024
Investing a lump sum in these FTSE 250 shares could yield a four-figure dividend income this year. Are they too good to miss? The post 2 FTSE 250 shares investors should consider for a £1,260 passive income in 2024 appeared first on The Motley Fool UK.
a day ago
The Guardian
Thames Water collapse could trigger Truss-style borrowing crisis, Whitehall officials fear
Exclusive: Concerns over effect on UK’s finances lead officials to believe utility should be renationalised before general election
2 days ago
The Guardian
Blow to would-be Everton owners 777 Partners as airline enters administration
Company owned by 777 Partners, who hope to take over Everton, enters administration in Australia
8 hours ago
Bloomberg
Cocoa Price Swings Show How Liquidity Crunch Fuels Wild Trading
(Bloomberg) -- The cocoa market was whipsawed by extreme volatility in the futures market on Tuesday amid a lack of liquidity.Most Read from BloombergHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsTesla Soars on Tentative China Approval for Driving SystemStocks Trade for 390 Minutes a Day. Increasingly, Only 10 MatterBinance and CZ’s Fortunes Are Set to Grow, Jail or no JailCocoa Price Swings Show How Liquidity Crunch Fuels Wild TradingAfter more than doubling this year, futures trad
59 minutes ago
The Telegraph
Everton call in debt restructuring firm after 777 takeover concerns
Everton have begun talks with debt-restructuring experts in a move that has raised further questions about the protracted takeover of the club by 777 Partners.
2 hours ago
The Telegraph
Tesla surges by $64bn after Elon Musk’s Beijing breakthrough
Tesla added nearly $64bn (£51bn) to its valuation after the EV giant took a step closer to launching self-driving cars in China.
a day ago