Owning a home is not always the better financial choice. Rising home prices, mortgage rates and property taxes can make renting less expensive for an extended period. In the Philadelphia metro area, an analysis found that saving for a down payment and then reaching the point where ownership is more economical than renting takes about 18 years.
Zillow estimated the typical U.S. household needs about 14.7 years from the start of saving to the buying break-even point. A median-income household saving 10 percent of annual income takes 8.5 years to save a 20 percent down payment on a typical single-family home, followed by another 6.2 years after purchase. The analysis includes prices, mortgage interest, taxes, insurance, maintenance and potential returns from investing the down payment elsewhere.
For the Philadelphia metro, Zillow estimated 8.3 years to save and another 9.8 years after buying, or about 18 years altogether, more than three years above the national estimate. The total could fall to about 7.9 years for a lower-priced starter home, illustrating how results vary by property size and price.
Zillow’s August 2026 figures put typical monthly U.S. rent at $1,948 and a new buyer’s mortgage principal and interest, taxes and insurance at $3,014, a difference of $1,066 per month or $12,792 a year. In the Philadelphia metro, typical rent was $1,911 and buyer costs were $3,331, a gap of $1,420 a month or $17,040 a year. For prospective buyers in Philadelphia, Montgomery and Bucks counties, the gap highlights the need to consider ongoing costs alongside upfront expenses.
Regional differences were substantial. Zillow estimated 49.2 years in San Jose, 46.9 in San Francisco, 40.4 in San Diego and 37.7 in Los Angeles. The estimates were 10.9 years in Memphis, 11.1 in Pittsburgh and 11.4 in Detroit. Zillow said higher prices lengthen the time to save for a down payment and higher mortgage costs delay break-even after purchase.
Renters can also build assets by saving or investing the monthly difference. Zillow noted that the roughly $12,800 annual national gap could earn investment returns, and renters could invest money otherwise used for a down payment. Returns are not guaranteed and losses are possible. Homeowners, meanwhile, can build equity over time by paying down principal and benefiting if home values rise.
Zillow economist Kara Ng said elevated prices make down payments harder to save and mortgage rates make owning more expensive. Renting can be a long-term financial strategy. Households that may relocate for work or plan to move could lose money if they sell shortly after buying because of transaction costs and interest.
Experts suggest comparing all costs, including the down payment, interest, taxes, insurance, repairs and transaction fees, and considering how long the household expects to stay. In Philadelphia suburbs with rising prices, ownership may help build wealth over a longer period, while renting may be more practical for a short stay or when borrowing costs are high. The decision depends on income, assets, family plans and expected length of residence as well as the housing outlook.