Zillow: Typical U.S. rent undercuts homeownership cost by USD 1,066 a month in August
ZG•Affordability gap between renting and buying
Affordability diverged as well: $77,919 income was needed to afford typical rent, versus over $120,500 for a mortgage with 10% down.
Largest savings in high-cost coastal markets
High-cost coastal markets drove the largest spreads:
- San Jose: $94,596 annual savings
- San Francisco: $64,956 annual savings
- Los Angeles: $53,292 annual savings
Typical rent versus monthly homeownership cost
Zillow analysis for August 2026 showed renting cheaper than buying in all 50 largest U.S. metros.
Typical U.S. rent was $1,948 a month, while the typical new buyer payment was $3,014, a gap of $1,066.
That gap implied $12,792 in annual renter savings; investing at a 4.68% rate added $322 in year-one returns.
