Monthly mortgage payments are less expensive than rent in 22 of the 50 largest metro areas, according to the Zillow Home Loans analysis.
New Orleans, Chicago and Pittsburgh offer the greatest savings when comparing the cost of rent to a mortgage payment. In Chicago, the average rent payment is $2,074 per month, while an average mortgage payment is $1,640.
Nationally, homeowners save more as well, with the average monthly rent payment costing $2,063 and the average mortgage payment costing $1,827.
"This analysis shows homeownership may be more within reach than most renters think," Zillow Home Loans Senior Economist Orphe Divounguy said in a statement. "Coming up with the down payment is still a huge barrier, but for those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth in the form of home equity - something you lose out on as a renter. With mortgage rates dropping, it's a great time to see how your affordability has changed and if it makes more sense to buy than rent."
Read the full report here.
