Soaring mortgage rates hit U.S. cities: Here’s where buying a home is most expensive relative to renting

soaring mortgage rates hit u.s. cities: here’s where buying a home is most expensive relative to renting

Soaring mortgage rates hit U.S. cities: Here’s where buying a home is most expensive relative to renting

The average interest rate on a 30-year fixed mortgage, at around 7.5%, is almost three times as high as it was in December 2020, and a construction shortfall in the U.S. has eroded the supply of single-family homes. As a result, the cost of buying a home relative to renting has reached unprecedented highs.

Nationwide, the average new-home mortgage payment is now 52% higher than the average monthly rent. And for many buyers, even that figure is misleadingly low, since it reflects lower prices in rural areas and small towns. In the major metro areas where business is concentrated, the premium attached to buying is far higher. In this graphic, the taller a city’s name, the higher the relative cost of ownership: It’s an apt metaphor for an investment that’s a bigger stretch than ever.

View this interactive chart on

This article appears in the December 2023/January 2024 issue of Fortune with the headline, “A high-rise hurdle for homebuyers.”

This story was originally featured on

News Related


Lawsuit seeks $16 million against Maryland county over death of pet dog shot by police

A department investigator accused two of the officers of “conduct unbecoming an officer” for entering the apartment without a warrant, but the third officer was cleared of wrongdoing, the suit says. Read more »

Heidi Klum shares rare photo of all 4 of her and Seal's kids

Heidi Klum posted a rare picture with husband Tom Kaulitz and her four kids: Leni, 19, Henry, 18, Johan, 17, and Lou, 14, having some quality family time. Read more »

European stocks head for flat open as markets struggle to find momentum

This is CNBC’s live blog covering European markets. European markets are heading for a flat open Tuesday, continuing lackluster sentiment seen at the start of the week in the region ... Read more »

Linda C. Black Horoscopes: November 28

Nancy Black Today’s Birthday (11/28/23). This year energizes your work and health. Faithful domestic routines provide central support. Shift directions to balance your work and health, before adapting around team ... Read more »

Michigan Democrats poised to test ambitious environmental goals in the industrial Midwest

FILE – One of more than 4,000 solar panels constructed by DTE Energy lines a 9.37-acre swath of land in Ann Arbor Township, Mich., Sept. 15, 2015. Michigan will join ... Read more »

Gaza Is Falling Into ‘Absolute Chaos,’ Aid Groups Say

A shaky cease-fire between Israel and Hamas has allowed a surge of aid to reach Palestinians in Gaza, but humanitarian groups and civilians in the enclave say the convoys aren’t ... Read more »

Bereaved Israeli and Palestinian families to march together in anti-hate vigil

Demonstrators march against the rise of antisemitism in the UK on Sunday – SUSANNAH IRELAND/REUTERS Bereaved Israeli and Palestinian families will march together as part of an anti-hate vigil on ... Read more »
Top List in the World