When it comes to renting versus buying, the U.S. is divided.
Fifty-three percent of Americans prefer buying, while the remaining 47% said they would rather rent or move in with a loved one, according to a survey published in June in a Bank of America Institute report.
Either way, it’s a personal financial and lifestyle question, with benefits and drawbacks on both sides. While there is not one right answer, there are things to consider. CNBC Select explores those factors, along with tools that can help you save the most money either way.
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Is it cheaper to rent or buy?
As of 2026, renting is typically cheaper than buying, according to Realtor.com’s analysis of mortgage and rent data.
The median asking rent in the 50 largest metros in July was $1,695, per Realtor.com’s rental report. Meanwhile, a homeowner would pay $2,480 for their monthly principal and interest mortgage payment if they bought a house at $428,950 — the average listing price — and put 10% down with a 6.66% rate — the average for a 30-year fixed mortgage as of August 27, according to CNBC Select’s mortgage calculator.
If you’re looking to compare rent versus mortgage costs in your area, you can use CNBC Select’s mortgage calculator to figure out how much you would have to pay each month.
While it’s generally more expensive to rent versus buy, it’s not the case everywhere. Areas with high property prices, low supply and lots of competition can be more difficult for buyers. In fact, buying is more costly in 95 of 838 cities that Construction Coverage analyzed using data from Zillow, the U.S. Census Bureau and Freddie Mac.
What are the financial costs and benefits to buying vs. renting?
Renting and buying come with their own financial benefits and tradeoffs.
Pros and cons of buying
Pros
- You can gradually grow your net worth using your home as an investment. Home values tend to rise over time and your stake in the property grows with every mortgage payment you make.
- You don’t have to worry about resigning a lease or getting evicted from your home, as long as you make on-time mortgage payments.
Cons
- You’ll also have to pay for monthly expenses like homeowners insurance, property taxes and private mortgage insurance — if you put less than 20% down.
- The cost of owning a home can be unpredictable from month-to-month; you’ll have to pay for any maintenance costs on the home out-of-pocket.
- Upfront costs tend to be larger than renting
Pros and cons of renting
Pros
- In most places, the monthly cost is cheaper than buying.
- Maintenance costs are usually wrapped up in the total rate. If your washing machine breaks or there is a leak in your ceiling, your landlord will be responsible for paying to replace it or fix the problem.
- Monthly cost is more predictable than buying
Cons
- You won’t be able to use your home as an investment
- Depending on your location, it may be more expensive
Tools to help you save on renting and buying
Whether you plan to rent or buy, tools and products that can help you save. Here are a few:
Get a Bilt card
The Bilt Blue Card (see rates and fees), designed for renters and owners, allows you to earn up to 1.25X points when used to pay your rent or mortgage. These points can be redeemed with partner travel organizations, gym classes or can go toward putting a down payment on a home.
While these points won’t lower your monthly housing payments, you’ll essentially get paid for making them, so you’ll have extra funds to use on other things.
The Bilt Blue Card offers a solid entry card to the world of Bilt, offering 1X on everyday purchases without charging an annual fee.
- Earns ultra-valuable flexible rewards
- No annual fee
- Can earn up to 1.25X points on rent and mortgage payments
- Additional steps for no-fee rent payments
- Bilt Cash redemptions are complicated
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Earn up to 1.25X points on rent and mortgage payments with no transaction fee.
- 1X points on everyday spend
- Welcome offer: $100 of Bilt Cash when you apply and get approved. At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.
- Earn additional points through Bilt Neighborhood Benefits™ when you use your card at Bilt’s network of 50,000+ merchant partners.
- Other benefits: No foreign transaction fees, Cellular Wireless Telephone Protection, Purchase Assurance, MasterRental Coverage (See Guide to Benefits)
Balance transfer fee
Go with affordable mortgage lenders
If you are planning to buy, get quotes from several mortgage lenders to see which gives you the best deal.
If you’re looking for lenders with competitive rates, try Better and FourLeaf Credit Union.
Better consistently offers below-average rates. Plus, it’s speedy: it closes in 19 days on average, nearly half the market average. It’s available in all 50 states and offers an easy-to-use AI chatbot to answer questions you may have.
Better Mortgage
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Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
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Types of loans
Conventional loan, FHA loan, Jumbo loan and adjustable-rate mortgage (ARM)
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Terms
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Credit needed
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Minimum down payment
3.5% if moving forward with an FHA loan
FourLeaf Credit Union is a not-for-profit, so all the money it earns goes back into products for its members; it offers below-average mortgage rates and, unlike many credit unions, it’s pretty easy to join — just deposit $5 into a savings account.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every personal finance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.