With interest rates beginning to ease, many buyers may be surprised to learn that owning a condo could now be less expensive on a monthly basis than renting a similar unit in the same area. This shift in affordability is opening up new opportunities for homeownership that didn't exist even two years ago.Not long ago, renting was the more economical option—buying a home often meant nearly double the monthly cost of a comparable rental. However, the landscape has changed. Thanks to a combination of slightly lower home prices and more competitive mortgage rates, the cost gap between renting and owning has narrowed significantly—and in some cases, has even flipped in favor of buyers.
Consider a recent example from a major development: in 2023, the average price for a condo unit was around $938,000, with mortgage rates sitting at approximately 5.49%. Under those conditions, a typical monthly mortgage payment would have been over $4,200, compared to about $2,200 to rent a similar unit nearby.
Fast-forward to today, and prices have dipped to around $792,000 with mortgage rates near 3.84%. That same home now carries a monthly mortgage payment of about $3,073—slightly less than the $3,168 average rent for a comparable unit.
This reversal could be a game-changer for prospective buyers. With the right down payment and a long-term view, homeownership is not only more attainable but potentially more affordable.
Of course, much of this affordability hinges on the direction of interest rates. After peaking in recent years, rates appear to be on a downward trend again. While it’s impossible to predict exactly where they’ll go, many economists anticipate further rate cuts later this year, especially given global economic uncertainty.
On the rental side, the market is beginning to stabilize. With more purpose-built rental supply becoming available, rent increases may flatten or even hold steady in the near future.
For those who have been sitting on the fence, this could be the right moment to take a serious look at buying. With monthly mortgage payments now competing directly with rent in some communities, the financial case for ownership is stronger than it has been in years.
Thinking of making a move? Let’s chat about whether buying is the right fit for you in today’s market.