The affordability of homeownership seems to be a hot topic in 2025, and a new housing cost analysis has revealed that Houston residents who are renting are getting a bargain: saving nearly $860 per month by renting rather than owning their homes.

The 2025 report, called "Renting vs. Buying: How Housing Costs Compare Across America," examined the median monthly homeownership and rent costs in 342 of the largest U.S. cities.

The study's findings revealed Houston homeowners spend a median $2,219 on their monthly housing costs, whereas renters spend about $1,362 in comparison. That's an $857 price difference.

Houston wasn't even the biggest city in terms of renters saving money — ranking No. 31 in the report's rankings of cities where homeownership is more expensive than renting.

This study compares median costs for each group of people regardless of what they're getting for that cost. Because of this, we only know how much more homeowners tend to pay in general — not how much more they'd pay for a comparable space.

Newark, New Jersey, ranked No. 1 on the list, with homeowners spending $2,641 per month on their homes, while renters only pay $1,341 a month, reflecting a whopping $1,300 difference.

As any Houston-area resident knows, the real cost of living in the city doesn't just stop at the monthly mortgage or rent price. SmartAsset also factored in the cost of utilities, insurance, maintenance, and taxes to show the most accurate representation of the ongoing costs of renting versus owning a home.

"On the rental side, the cost of utilities can add a consistent, considerable amount to your costs," the report said. "For homeowners, mortgage costs are padded not only by utilities but homeowners’ insurance, property taxes and maintenance costs."

Housing costs in Houston-area suburbs
The difference between The Woodlands (No. 45) renters and homeowners is greater than it is in Houston, though both monthly costs are much higher in the suburb. The report found that homeowners' costs in The Woodlands outpace renters' by $1,156 per month, totaling $3,075. Renters pay only $1,919 a month.

Housing costs in Conroe (No. 69) are not far off from Houston, with residents paying $2,168 a month to own their homes, while renters only pay $1,441. That means the gap between renters and owners is $727 per month.

The difference between home ownership versus renting is smallest in the far northeastern suburb of Atascocita, with renters only saving $333 per month over their homeowning neighbors.

Here's what the report says are the monthly housing costs in other Houston-area suburbs:

• Sugar Land – $2,851 for homeowners; $2,108 for renters = $743
• League City – $2,337 for homeowners; $1,621 for renters = $716
• Pearland – $2,515 for homeowners; $1,805 for renters = $710
• Pasadena – $1,816 for homeowners; $1,206 for renters = $610
• Atascocita – $2,180 for homeowners; $1,847 for renters = $333

Residents in any major city who are considering buying their first house must consider all monthly financial costs before deciding to leave the rental life behind. Potentially large bills, like property taxes, can sneak up on some homeowners if they don't educate themselves properly prior to buying a home. (Thankfully, there are ways to save money in that category.)

"These hidden costs can add up and change the dynamics of tradeoffs between the flexibility of renting versus the security of owning your own home," the report added.