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Nationwide, renting is cheaper than buying a home — but not everywhere. According to a new report from Realtor.com, renting can save you an extra $1,000 per month compared to buying a home, but in three out of four Ohio cities, that’s not the case.

Renting in Ohio

The Ohio rental market is definitely heating up. According to data from Zillow, the median rent price in Ohio is $1,300, up $54 from last year, but prices in Columbus, Cleveland, and Cincinnati are even higher.

Zillow found that Cleveland saw one of the largest rent increases in the country at 7.2%, placing it close behind Hartford, Connecticut, at the top of the list. Cincinnati and Columbus also saw increases of 5.2% and 4.7%, respectively.

Skylar Olsen, chief economist at Zillow, said this is because people typically move in the summer, which fuels the rental market. “Renters are moving to more affordable areas in the Northeast and Midwest,” Olsen said. Remote and hybrid work has allowed people to live farther away from larger cities like New York and Boston. “The savings seem to be worth it for many renters, even if it means an occasional tedious commute,” Olsen added.

Buying a home in Ohio

Ohio is one of the hottest (and most affordable) real estate markets in the country. According to a Realtor.com ranking, five of the top 20 real estate markets in the country were in Ohio.

“While buyers across much of the country struggle with still-high home prices and mortgage rates, affordable areas in the Midwest have become more popular,” said Hannah Jones, senior economic analyst at Realtor.com. “Buyers in these markets can take advantage of lower home prices without compromising on job prospects or lifestyle amenities.”

Renting vs. Buying Real Estate in Ohio

GOBankingRates conducted a study to determine the price difference between renting and buying a home. In three of the four Ohio cities analyzed, buying was the cheaper option.

Here’s a cost breakdown of renting versus owning property in Columbus, Cleveland, Cincinnati and Toledo.

Columbus

• Total population: 902,449
• Median household income: 62,994 USD
• Average property value: 247,042 USD
• Average monthly mortgage payment: $1,463
• Average monthly rent: $1,483
• Monthly living expenses for homeowners: $3,368
• Monthly living expenses for tenants: $3,389
• Cheaper option: purchase

In Columbus, buying a home is only slightly cheaper than renting.

A separate report from Realtor.com also found that Columbus came in first due to its low cost of living and low unemployment rate. The city also had the highest number of viewings per property. Additionally, a larger share of interest comes from outside the region. According to Realtor.com, this suggests that Columbus is more attractive across the country and may become a more competitive location.

Cleveland

• Total population: 370,365
• Median household income: 37,271 USD
• Average property value: 113,340 USD
• Average monthly mortgage payment: 671 $
• Average monthly rent: $1,410
• Monthly living expenses for homeowners: $2,498
• Monthly living expenses for tenants: 3,236 USD
• Cheaper option: purchase

Buying a home in Cleveland is also cheaper than renting. According to U.S. News & World Report, Cleveland is one of the most undervalued markets for buying a home. The metro area has a payment-to-income ratio of 20.6%.

Cincinnati

• Total population: 308,870
• Median household income: 49,191 USD
• Average property value: $246,753
• Average monthly mortgage payment: 1,461 USD
• Average monthly rent: $1,446
• Monthly living expenses for homeowners: 3,366 USD
• Monthly living expenses for tenants: 3,351 USD
• Cheaper option: Rental

Cincinnati is the only Ohio city on this list where renting is cheaper than buying. It’s also one of the most popular cities for Generation Z, according to an analysis by SmartAsset. According to the analysis, 1.52% of local Generation Z will buy a home in 2023.

Toledo

• Total population: 269,962
• Median household income: 45,405 USD
• Average property value: 124,509 USD
• Average monthly mortgage payment: $737
• Average monthly rent: $1,086
• Monthly living expenses for homeowners: $2,553
• Monthly living expenses for tenants: $2,902
• Cheaper option: purchase

According to Realtor.com’s 2024 Best Real Estate Markets Forecast, Toledo is one of the top markets predicted to experience double-digit sales growth in 2024. The city is expected to see a 14.0% increase in existing home sales year-over-year and also has the highest percentage of homeowners who own their home outright.

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