Is it better to rent or to buy? That depends on where you live and whether you think long-term or short-term.
In every state across the country, homeowners with a mortgage pay more per month than renters, but the difference is far more drastic in some than others, according to a CNBC report on U.S. Census data from 2013-2017. The reason behind the finding isn’t clear from the data, but, based on other reports, it likely has to do with increased costs as an owner, including maintenance of a property, insurance and taxes.
The disparity between costs are the highest mostly in the Northeast and the West Coast, but also in Illinois, Minnesota, and Maryland, where there are large cities.
Renting in New York State is roughly $870 cheaper than buying. It’s not much closer in California, where the difference is $848. Prices have slowed in both states following years of record growth, but remain high in Los Angeles while New York City has seen a more significant drop.
The disparity is less drastic in Illinois — owners pay around $681 more per month than renters. Florida owners pay just $355 per month more than renters.
The biggest disparity is in New Jersey, where it costs $1,149 per month to own a home than rent. It’s the lowest just an eight hour drive away in West Virginia, where it costs just $316 more to own than rent. West Virginia is also the cheapest overall state to rent and own and is less than half what it costs to rent and own in some of the more expensive states in the country.
The number of American renters who can’t afford to buy a home is higher than it’s ever been. Today, more than two-thirds of renters plan to keep renewing their leases due to their finances, up from 59 percent just two years ago. [CNBC] – Dennis Lynch