Buying a home used to be seen as a way to build financial equity. But higher mortgage rates and home prices have made many buyers consider renting a more affordable option, according to a new study by the construction and real estate industry research firm Construction Coverage.
The firm recently analyzed data in 343 cities and more than 1,000 counties across the U.S., providing a detailed breakdown of the buying vs. renting premium, median monthly housing costs and home prices. The study found only 32 of the cities are currently more affordable for buyers than for renters. As of January 2025, the median monthly mortgage payment and associated property taxes are 21 % higher than the median rent in the U.S.
Peoria real estate: Sales in Peoria, Tazewell and Woodford counties for April 5, 2025
Peoria is among the glaring exceptions to the study’s findings.
The city’s median mortgage payment is $990, while the median monthly rent is $1,133. The 12.6% difference made Peoria the second-most affordable for home buyers nationwide. Jackson, Mississippi, was the runaway winner in the small city category, being 59.8% cheaper for buyers than for renters.
Peoria was Illinois’ only city of any size in the report where buying is cheaper than renting. The report showed Macon County to be the country’s 12th most buyer-friendly county, with the median monthly mortgage payments 26% lower than median monthly rent.
This article originally appeared on Journal Star: Renting cheaper than buying in most of nation, but not in Peoria