Renting a home is still cheaper than buying a home in all 50 of the largest United States metros, two include New Jersey cities, with the cost difference growing in 38 of those metros since last year, according to Bankrate’s Rent vs. Buy Study. An average mortgage payment costs 38% more per month compared with renting.
Bankrate compared average monthly mortgage payments to average monthly rent for all homes across 50 of the largest metro-statistical areas in the U.S. to determine whether renting or buying is more affordable in the short term. Mortgage payments included principal, interest, homeowners insurance and property taxes.
Bankrate’s report found that the average monthly mortgage payment for a median-priced home ($425,583, per Redfin as of February) in the United States, including average property taxes and homeowners insurance, rose 2.4% from $2,703 in 2024 to $2,768 in 2025. Rents have remained relatively stable in comparison, with average national monthly rent down 1.7% from last year after adjusting for inflation ($2,000 in 2025). On average, the study found that Americans are paying 38% less per month to rent a home compared to buying one.
In the New York-Newark-Jersey City, NY-NJ-PA metro area, the buy-rent gap was 52.6%. The average monthly rent was $3,253, compared with average monthly mortgage payment of $4,963. In contrast, the buy-rent gulf narrowed in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area. The difference there was 11.5%. The average monthly rent was $1,901, compared with average monthly mortgage payment of $2,121.
“Millions of Americans continue to be priced out of homeownership today because of rising mortgage rates, home prices, property taxes and insurance rates, even as housing inventory shows signs of improvement,” said Bankrate Analyst Alex Gailey.
The national average on a 30-year fixed-rate mortgage is 6.90%, according to Bankrate. Rates have trended lower from their recent peak in late 2023 at 7.79% for 30-year fixed-rate mortgages. In early 2022, the average 30-year fixed rate was 4.72%.
The five metros with the biggest cost gaps between renting and buying are all located in the West, where home prices and cost of living both tend to be higher. The metros with the smallest price gaps between renting and buying are mostly concentrated in the South and Midwest.
