Renting vs. Buying a Home in 2026: Which Is More Affordable?

People have always argued about whether it’s cheaper to rent or buy a home. The decision is important because you don’t want to spend so much on housing that you can’t afford other basic needs.

Both renting and buying have their own set of costs and things to think about.

As we look ahead to 2026, housing expenses, mortgage rates, and rent prices are expected to keep changing. It’s a good time to revisit the question: Will it be cheaper to rent or own a home in 2026?
 

Renting in 2026

Recent data from Apartment List says national rent prices are actually down 1.1% compared to last year, likely due to more apartments being available. This gives renters a better spot financially.

But national average rent is still expected to go up in 2026. Right now, the average rent is about $1,631 per month for a one-bedroom and $1,887 for a two-bedroom.

Even with rising rents, the expected jump in home prices will likely be more significant. Home prices are predicted to keep climbing (though more slowly), with the National Association of Realtors expecting a 4% increase nationally.
 

Buying a Home in 2026

Getting a mortgage can mean taking on a lot of debt, especially because of interest rates.

The good news is that mortgage rates are predicted to drop in 2026. Experts estimate the average 30-year mortgage rate will be about 6%, down from 6.7% in 2025.

Still, there are not enough homes for sale. This shortage helps keep prices from falling much. As of December 2025, Zillow reported the average U.S. home value at about $360,727, which is almost the same as the previous year.

Buying a home also comes with extra costs, such as:
 

• Closing costs: Usually 3% to 4% of the home’s price (for a $400,000 home, that’s $12,000–$16,000 upfront).
• Down payment: Often 3.5% or more of the home’s price; putting down 20% helps you avoid extra insurance payments.
• Interest: You’ll pay interest on your mortgage. In late 2025, 30-year mortgages averaged 6.23% interest, while 15-year ones averaged 5.51%.
• Other costs: Homeownership also means paying for property taxes, maintenance, insurance, and possible Homeowners’ Association (HOA) fees.

 

Comparing Costs

Renters might have to pay a deposit (often at least one month’s rent) and various extra fees—sometimes called "junk fees" (like application or move-in fees).

These can add up over time, but renting usually doesn’t have as many upfront costs as buying.

On the other hand, if you rent for 30 years at $2,000 per month, you’ll pay $720,000 total, not including fees—and you won’t own any property at the end.
 

What’s Best for You?

In 2026, renting will probably be cheaper than buying, at least at first. Renting can be a good choice if you don’t want to stay in one place for a long time, or if you’re not ready for the bigger upfront and ongoing costs of owning.

Buying a home gives you a chance to build equity and avoid rent increases, but you’ll need to budget for property taxes and insurance, which can go up, too.

Think about your lifestyle, financial situation, and future plans before you decide which option fits you best.

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