In North Texas buying a home costs 73% more than renting

Housing affordability continues to be a conundrum for many Americans, both from the perspective of renting and buying. Recent findings from a comprehensive Bankrate study indicate a significant tilt towards renting being more economical than buying, particularly in large metropolitan areas.

Specifically, in the Dallas-Fort Worth metro area, the contrasts in cost were particularly notable.

"It costs roughly 73% more to own on a monthly basis than to rent," says Bankrate analyst Alex Gailey. She attributed the steep climb in homeownership costs to a significant rise in home prices fuelled by population growth and competitive market dynamics.

The study found the typical monthly rent in North Texas to be $1,765, while the typical monthly mortgage cost is now $3,044.

Nationally, the trend was consistent. Renting is cheaper than buying right now.

"In our analysis, we essentially found that renting is cheaper than owning on a monthly basis when looking at the national figures, but also in all 50 of the largest metros," Gailey said.

The study revealed that this difference becomes more pronounced in pricier coastal cities such as San Francisco and San Jose, while more affordable areas like Detroit and Pittsburgh showed narrower gaps.

Despite these findings, the aspiration for homeownership remains strong.

"Americans do want to own homes, and they see that as a key part of the American dream ," Gailey remarked.

This enduring sentiment stands in contrast to the daunting financial challenges many face with soaring home prices and elevated mortgage rates.

Despite the sobering statistics, Gailey provides a silver lining for those feeling the pressure to enter the housing market.

"Those who are maybe debating renting or buying right now who aren't quite ready to buy...can continue focusing on building their savings, paying down their debt, and building wealth in other ways until they're financially ready to buy a home," she advised. "You really want to make sure you're financially prepared for that commitment."

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