According to a recent Zillow study, in 22 of the 50 largest U.S. metro areas, monthly mortgage payments are now more affordable than renting.

As mortgage rates ease from their peak, home prices stabilize, and housing inventory rises, buying has become a more budget-friendly option for many. This shift in affordability is a big deal for those who have been renting and waiting for the right time to purchase a home.

If your city isn’t on this list yet, don’t worry—it may be catching up soon. The real estate market is dynamic, and conditions are evolving quickly. Consulting a local real estate expert can provide you with the insights you need to make informed decisions about whether buying a home in your area is now within reach. Being proactive could position you to take advantage of improved market conditions before others do.

While this study compares monthly rent payments to the principal and interest on a mortgage, it's important to keep in mind the additional costs of homeownership, like property taxes, insurance, and maintenance. On the flip side, renters also face added expenses like renters’ insurance, utilities, and sometimes parking fees. It’s worth crunching the numbers to determine which option makes the most sense for you.

As Orphe Divounguy, Senior Economist at Zillow, points out:

“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.”

Whether you're in one of the metros where buying is already cheaper than renting or in another city where the market is shifting, now is a great time to speak with a local real estate agent. They can help you navigate the current conditions and figure out if homeownership is a smart financial move for you.

Bottom Line

With mortgage rates dropping and inventory rising, now might be the time to transition from renting to owning. If you’re curious about what it takes to buy a home in your area, let’s crunch the numbers together to see if purchasing a home makes sense for you now or in the near future.