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10 cities where it's better for retirees to rent instead of buy
Michael Kurko September 24, 2025 at 7:12 PM
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10 cities where it's better for retirees to rent instead of buy (Jonathan Ross via Getty Images)
For older Americans, choosing to buy or rent comes down to retirement savings and lifestyle. Downsizing, avoiding maintenance and keeping cash liquid are more important than building equity once you retire. With high mortgage rates, taxes, and home prices, renting is a more affordable and flexible option in many markets.
Realtor.com and Zillow data show that in most metro areas, buying costs far more than renting, making flexibility and steady cash flow key considerations for older households.
Why renting is winning in 2025
The current imbalance in housing and rental prices is due to several market forces:
Mortgage rates remain high. While rates have dropped to their lowest in a year, a 30-year fixed loan still sits above 6%. Combined with 20% down payments, homeownership can cost hundreds or thousands more monthly than renting.
Insurance costs are surging. Homeowners in Florida, California and Gulf Coast states face rising premiums due to climate risks, adding further costs to ownership.Property taxes are climbing. Older homeowners on fixed incomes can be hit hard by annual tax reassessments, particularly in booming metro areas.
Rents have cooled. After sharp spikes in 2021 to 2022, rent growth has slowed in many cities, stabilizing monthly costs for tenants.
These trends make renting both more affordable in the short run and less risky for older Americans who don't want to tie up retirement savings in real estate.
🔍 Read more: Renting vs. buying a home: Hidden expenses, tax benefits and how to weigh what's right for you
10 markets where renting crushes buying costs
These are the metros where renting a home beats buying by the widest margin, according to recent Realtor.com data.
Metro area
Monthly purchase cost
Median rent
Estimated monthly savings by renting
Austin–Round Rock–Georgetown, TX
$3,150
$1,467
$1,683
Los Angeles–Long Beach–Anaheim, CA
$5,342
$2,719
$2,623
San Francisco–Oakland–Berkeley, CA
$5,232
$2,730
$2,502
Seattle–Tacoma–Bellevue, WA
$3,784
$1,997
$1,787
Phoenix–Mesa–Chandler, AZ
$2,738
$1,491
$1,247
Sacramento–Roseville–Folsom, CA
$3,395
$1,877
$1,518
New York–Newark–Jersey City, NY–NJ–PA
$5,140
$2,912
$2,228
Nashville–Davidson–Murfreesboro–Franklin, TN
$2,700
$1,534
$1,166
San Diego–Chula Vista–Carlsbad, CA
$4,676
$2,674
$2,002
Boston–Cambridge–Newton, MA–NH
$5,213
$3,009
$2,204
Monthly mortgage cost estimate includes principal, interest, taxes and insuranceSource: June 2025 Rental Report, Realtor.com
In metros like Austin and Los Angeles, renting can save you more than $20,000 annually compared with buying. That's enough to cover healthcare premiums, fund travel or build out your emergency savings, providing peace of mind.
🔍 Read more: States that tax Social Security benefits — including updates for 2025
10 cities that still favor buyers
In these large cities, the cost difference between renting and buying shrinks dramatically, according to Construction Coverage research. In some cases, owning is even cheaper.
City
Monthly purchase cost
Median rent
Estimated cost difference
Detroit, MI
$1,150
$1,800
–$650 (owning cheaper)
Cleveland, OH
$1,200
$1,600
–$400 (owning cheaper)
Baltimore, MD
$1,650
$2,150
–$500 (owning cheaper)
Memphis, TN
$1,300
$1,650
–$350 (owning cheaper)
Philadelphia, PA
$1,900
$2,250
–$350 (owning cheaper)
New Orleans, LA
$1,600
$1,750
–$150 (owning cheaper)
Chicago, IL
$2,200
$2,200
$0 (near parity)
Oklahoma City, OK
$1,500
$1,450
+$50 (slightly more to own)
Tulsa, OK
$1,450
$1,400
+$50 (slightly more to own)
Indianapolis, IN
$1,600
$1,500
+$100 (slightly more to own)
Monthly mortgage cost estimate includes principal, interest, taxes and insuranceSource: Cities Where It's Cheaper to Buy Than Rent, Construction Coverage
In Detroit, buying can cost 60% less a month than renting, while Cleveland offers savings around 40%. If you plan to stay put for several years, buying in these markets mean lower monthly payments and the chance to build valuable equity.
🔍 Read more: 5 ways to build equity in your home more quickly (and why it matters)
Coastal vs. Heartland: A tale of two housing markets
On the coasts and in Sun Belt metros, housing demand keeps purchase prices high while new apartment construction helps keep rents relatively low. Contrast this with the Midwestern and Rust Belt cities, where older homes and lower demand create affordable ownership opportunities.
Regional choice also affects the rent-versus-buy equation. In markets like Nashville or Phoenix, monthly homeownership costs run higher. However, your dollar stretches much further in cities like Detroit or Cleveland — though often with trade-offs in climate and culture.
Beyond the mortgage: 6 factors that matter more in retirement
The same factors you factored into your decision to buy or rent in your 30s look different after you hit 65. While monthly costs matter, here are the six key factors older adults should consider.
Freedom to move vs. putting down roots. Renting gives you more flexibility to move closer to your children, downsize your home or relocate for better healthcare options.
No more honey-do lists. Renting means no longer worrying about yardwork, repairs and upkeep — tasks that become difficult and expensive in retirement.
Keeping your money accessible. In retirement, flexible savings matters more than tying up hundreds of thousands in home equity that's harder to access without a loan.
Rising costs you can't control. Property taxes and homeowners insurance premiums can strain your retirement budget, especially in storm-prone areas with volatile insurance markets.
Your next 10 to 15 years. If you plan to live in one place for at least 10 years in retirement, buying may make sense — especially in metros where ownership costs less than renting.
A home to leave behind. If leaving property to your heirs is a priority, owning in an affordable market serves both financial and emotional goals.
🔍 Read more: 7 best low-risk investments for retirees
The verdict: In many cities, rent beats the mortgage
The market favors renting in high-cost coastal metros like Los Angeles, San Francisco and New York, where monthly savings can be huge. However, buying makes more financial sense in Midwestern and Rust Belt cities like Detroit, Cleveland or Memphis.
Personal needs matter just as much as the numbers — your health, proximity to family and desired lifestyle all play a role. Overall, the data shows that older Americans benefit from renting — and pocketing the savings — in much of the country. Ultimately, the right choice is what best fits your personal lifestyle, budget and future goals.
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About the writer
Michael Kurko is a finance writer and editor who covers investing, real estate, personal budgeting and financial literacy. His expertise has been featured in FinanceBuzz, The Balance, Investopedia, U.S. News & World Report and Forbes Advisor, among other top financial publications. In addition to his work in finance, Michael is also a freelance book editor and fiction writer. He strives to make complex money topics clear and approachable so readers can make informed decisions and build lasting financial confidence.
Article edited by Kelly Suzan Waggoner
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