10 Cities Where Renters Pay More for Housing Than Homeowners: Report

Study Shows Renting Is Now Cheaper Than Monthly Cost Of Owning A Home In Bay Area — A sign is posted in front of an apartment building with available rentals on June 09, 2023 in San Francisco, California. According to a report by real estate company Redfin, owning a home in the San Francisco Bay Area is more expensive than renting. The report shows that owning a home in San Francisco can be as much as 139 percent more expensive than renting and even higher in San Jose where it is 165 percent more expensive. The national average for a typical home runs about 25 percent more to buy than to rent. Photo by Justin Sullivan/Getty Images

Rental prices in the United States have become increasingly expensive, with the median monthly rent in the country soaring past $1,600.

Renters in the US now need to earn at least $66,120 a year to afford the rent of a median-priced apartment of $1,653. That is 17% higher than the average income of $54,712. That means only 39% of rents can afford the monthly rent, assuming they only spend 30% or less of their income on housing costs. That is according to a new report from Redfin, which analyzed the median US apartment asking rents as of the three months ending May 31, 2024.

Despite rising rental prices, renting is still a better option for many Americans as just 6% of renters can afford the median monthly payment for a home, a Harvard University study found.

That being said, renters in some cities were found to have been paying more than homeowners, per a SmartAsset analysis.

10 US Cities Where Renters Pay More Than Homeowners

Surprise, Arizona

Median Monthly Gross Rent: $2,064

Median Monthly Mortgage: $1,696

How Much Renters Pay More Than Homeowners: $368

San Tan Valley, Arizona

Median Monthly Gross Rent: $1,843

Median Monthly Mortgage: $1,566

How Much Renters Pay More Than Homeowners: $277

Lehigh Acres, Florida

Median Monthly Gross Rent: $1,598

Median Monthly Mortgage: $1,431

How Much Renters Pay More Than Homeowners: $167

Brandon, Florida

Median Monthly Gross Rent: $1,718

Median Monthly Mortgage: $1,563

How Much Renters Pay More Than Homeowners: $155

Gilbert, Arizona

Median Monthly Gross Rent: $2,064

Median Monthly Mortgage: $1,918

How Much Renters Pay More Than Homeowners: $146

Cape Coral, Florida

Median Monthly Gross Rent: $1,801

Median Monthly Mortgage: $1,694

How Much Renters Pay More Than Homeowners: $107

Peoria, Arizona

Median Monthly Gross Rent: $1,860

Median Monthly Mortgage: $1,785

How Much Renters Pay More Than Homeowners: $75

Meridian, Idaho

Median Monthly Gross Rent: $1,789

Median Monthly Mortgage: $1,739

How Much Renters Pay More Than Homeowners: $50

Spring Hill, Florida

Median Monthly Gross Rent: $1,273

Median Monthly Mortgage: $1,253

How Much Renters Pay More Than Homeowners: $20

Palm Bay, Florida

Median Monthly Gross Rent: $1,438

Median Monthly Mortgage: $1,420

How Much Renters Pay More Than Homeowners: $18