Rent payments are now higher than mortgages in many cities
NEW YORK - A majority of the largest metropolitan markets are seeing rents becoming higher than mortgage costs.
Memphis, Miami, and Atlanta lead a host of major metros where rents are higher than typical mortgage payments, according to real estate website Zillow.
The company says that of the 50 largest U.S. metros, 33 have typical rents that are higher than typical monthly mortgage payments, including insurance and taxes.
Metro areas across the Midwest and coastal South stood out. Memphis had typical rents at $1,504 in July and typical total monthly mortgage payments at just $948. This makes a rent-to-mortgage difference of $556 in that metro.
Miami came in second with a $522 difference between rents and mortgage payments, followed by Atlanta at $424.
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The Great Reshuffling and the ability to work from home has severed or seriously stretched the commute for millions of Americans and opened up new opportunities for them to live where they've always dreamed. A recent Gallup poll found 52% of U.S. workers are in at least partially remote jobs, while 33% are fully remote.
Rent growth across the U.S. slowed dramatically following the coronavirus outbreak but quickly recovered in 2021. A recent Zillow market report showed rents in July up annually in all 50 major metros.
Top 10 Metros for Saving Money by Renting Out Properties:
1. Memphis
Typical monthly rent: $1,504
Typical monthly mortgage: $948
Difference: $556
Size ranking: 41
2. Miami
Typical monthly rent: $2,249
Typical monthly mortgage: $1,727
Difference: $522
Size ranking: 8
3. Atlanta
Typical monthly rent: $1,787
Typical monthly mortgage: $1,363
Difference: $424
Size ranking: 9
4. Birmingham
Typical monthly rent: $1,271
Typical monthly mortgage: $868
Difference: $403
Size ranking: 49
5. Tampa
Typical monthly rent: $1,819
Typical monthly mortgage: $1,435
Difference: $384
Size ranking: 19
6. Indianapolis
Typical monthly rent: $1,375
Typical monthly mortgage: $1,044
Difference: $331
Size ranking: 33
7. Orlando
Typical monthly rent: $1,758
Typical monthly mortgage: $1,444
Difference: $314
Size ranking: 27
8. Charlotte
Typical monthly rent: $1,628
Typical monthly mortgage: $1,339
Difference: $290
Size ranking: 24
9. Oklahoma City
Typical monthly rent: $1,210
Typical monthly mortgage: $931
Difference: $279
Size ranking: 42
10. Detroit
Typical monthly rent: $1,387
Typical monthly mortgage: $1,119
Difference: $268
Size ranking: 12