PRNewswire via Zillow Newroom: “The monthly cost of home ownership may be more attainable than people think. But, it depends on where they live. According to a new Zillow Home Loans analysis, a monthly mortgage payment is actually less expensive than rent in 22 of the 50 largest U.S. metros. Recent dips in mortgage rates, which have fallen to the lowest level since early 2023, have significantly reduced monthly payments. New Orleans, Chicago and Pittsburgh offer the greatest savings when comparing the cost of rent to a mortgage payment, before taxes and insurance, and assuming a buyer can put 20% down. For those who can put together a down payment, buying a home in these cities may be the right move. In Chicago, the typical rent payment is $2,074 per month, but a monthly mortgage payment is $1,640 — a savings of $434 a month by owning rather than renting. In New Orleans, homeowners can also save nearly $450 a month paying a mortgage rather than renting, and in Pittsburgh, the savings are about $320 a month. These savings are even more surprising when considering that homes for sale tend to be larger than the typical rental.  This trend also holds true across the U.S. The typical rent payment nationally is $2,063 a month, but the typical mortgage payment is $1,827 — a savings of $236 a month by owning rather than renting.  “This analysis shows homeownership may be more within reach than most renters think,” said Zillow Home Loans Senior Economist Orphe Divounguy. “Coming up with the down payment is still a huge barrier, but 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.”   Beyond monthly rent or mortgage payments, there are additional costs for both renting and homeownership that must be considered. Homeowners pay taxes, insurance, and utilities on a monthly basis, and should be prepared for ongoing maintenance costs. Renters also typically need insurance, and will often pay extra for parking, pets, and utilities.  There are pros and cons to both buying and renting, but generally, the longer you plan to stay in your house, the more financial sense it makes to buy. Mortgage payments can decrease over time by paying off private mortgage insurance or refinancing your loan at a lower rate, whereas rent payments have the potential to increase at each lease renewal. Beyond that, mortgage payments build homeowners’ equity in their house — increasing their financial stake in their home as time passes.”