Homeowners are spending more money per month than renters in every U.S. state, according to a recent CNBC report.
While price differences vary from state-to-state, homeowners with a mortgage are spending more each month than renters in all 50 states, the report found, citing data from the U.S. Census Bureau.
The Census Bureau’s 2013 – 2017 American Community Survey five-year estimates analyze more than 40 social, economic, housing and demographic topics, including homeownership rates and costs, health insurance, and educational attainment.
Homeownership costs increased 14 percent year-over-year in 2018 compared to just 4 percent for rent increases, according to CNBC. The difference in costs are in large part associated to increased expenses for maintenance, property taxes, repairs, and insurance, the report found.
The largest cost difference between owning and renting is in New Jersey where the median monthly cost for homeowners with a mortgage is $2,398 compared to a median rent cost of $1,249 for a difference of $1,149 per month. Arkansas boasts the smallest contrast between renting and owning with only a $330 difference.
In a similar but unrelated report, ATTOM Data Solutions found that renting is cheaper than buying a home in a majority of the largest U.S. counties.
Renting a three-bedroom home is more affordable than buying a median-priced home in 442 of 755 U.S. counties — roughly 59 percent — that were analyzed for ATTOM’s 2019 Rental Affordability Report. The broad study incorporated fair market rent data for 2019 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics and public record sales deed data from ATTOM in 755 U.S. counties with sufficient home sales data, the real estate analytics company said.
ATTOM also found that renting is cheaper in the most populated U.S. cities. Renting is more affordable than buying a home in the United States’ 18 most populated counties, according to ATTOM. Renting is also cheaper in 93 percent of counties with a population of 1 million or more people, including Los Angeles County, California; Cook County, Illinois; Harris County, Texas; Maricopa County, Arizona, and San Diego County, California.