CultureMap Austin writes, "The affordability of homeownership seems to be a hot topic of 2025, and the cost difference between renting and buying a home in Austin adds up to more than $1,000 per month, according to a new housing cost analysis by SmartAsset.
The 2025 report, called "Renting vs. Buying: How Housing Costs Compare Across America," examined the median monthly homeownership and rent costs in 342 of the largest U.S. cities.
The study's findings revealed Austin homeowners spend a median $2,768 on their monthly housing costs, whereas renters spend about $1,764 in comparison.
Austin ranked No. 58 in the report's rankings of cities where homeownership is more expensive than renting.
This study compares median costs for each group of people regardless of what they're getting for that cost. Because of this, we only know how much more homeowners tend to pay in general — not how much more they'd pay for a comparable space.
Newark, New Jersey, ranked No. 1 on the list, with homeowners spending $2,641 per month on their homes, while renters only pay $1,341 a month, reflecting a whopping $1,300 difference.
The difference between Round Rock (No. 214) renters and owners is narrower than it is in Austin, though both monthly costs are still lower in Round Rock. The report found that homeowners' costs in the North Austin suburb outpace renters' by more than $450 per month, totaling $2,262. Renters pay only $1,809 a month.
As any Austin-area resident knows, the real cost of living in the city doesn't just stop at the monthly mortgage or rent price. SmartAsset also factored in the cost of utilities, insurance, maintenance, and taxes to show the most accurate representation of the ongoing costs of renting versus owning a home.
"On the rental side, the cost of utilities can add a consistent, considerable amount to your costs," the report said. "For homeowners, mortgage costs are padded not only by utilities but homeowners’ insurance, property taxes and maintenance costs."
Residents in any major city who are considering buying their first house must consider all monthly financial costs before deciding to leave the rental life behind. Potentially large bills, like property taxes, can sneak up on some homeowners if they don't educate themselves properly prior to buying a home. (Thankfully, there are ways to save money in that category.)
"These hidden costs can add up and change the dynamics of tradeoffs between the flexibility of renting versus the security of owning your own home," the report added."
Source: CultureMap Austin
Written by: Amber Heckler
Published: May 6, 2025
Posted by Grossman & Jones Group on
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