Cost of Renting vs. Owning a Home in Every State

J. Arky

17 June 2024 at 5:00 pm·8-min read

According to conventional financial planning 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?

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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

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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

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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

Idaho

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

Illinois

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

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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

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

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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

Missouri

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

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Montana

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

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

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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

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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

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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

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Virginia

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

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

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Wyoming

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

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

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