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If you’re considering renting or buying in 2026, current prices may be a blow to your budget. Whereas RentCafe The average monthly rent was reported to be $1,741, AmeriSave The average mortgage payment is estimated to be $2,329.
Comparing these numbers to 2016 prices provides some interesting insights into the housing market and whether it was smart to rent or buy a decade ago.
How much did the rental cost?
According to RentCafe 2016 year end reportThe average US apartment renter paid $1,210 per month, which is about $1,630 in 2026 dollars cpi inflation calculator.
The report also revealed that fare payments vary widely. For example, the average renter in Los Angeles paid a whopping $2,169 ($2,922 in 2026 dollars), while a renter in Detroit paid $932 ($1,256 in 2026 dollars). Additionally, large increases in fares, sometimes in the double digits, were not unusual.
However, as today, renters benefited from lower additional costs than homeowners. While it was common to deduct one or two months’ rent for a security deposit and pay a nominal amount for application fees and tenants’ insurance premiums, landlords covered expensive maintenance and repair costs.
What were the costs of home ownership?
freddie mac data revealed that the national average 30-year fixed mortgage rate was 4.32% at the end of December 2016, significantly lower than Current 6% average rate. Other than this, US Census Bureau and US Department of Housing and Urban Development The median home price was shown at $364,900 ($491,600 in 2026 dollars).
Assuming a 20% down payment ($72,980) and a 4.32% mortgage rate, the monthly principal and interest cost on a 30-year fixed mortgage for the average home would be approximately $1,448 ($1,951 in 2026 dollars), based on mortgage calculator. With a smaller down payment, your mortgage payment will have increased and will likely also include mortgage insurance.
Buyers also faced additional costs, such as:
- property taxes: While they varied by location, property taxes averaged $3,296 annually ($4,440 in 2026 dollars). ATTOM Data Solutions.
- homeowner insurance: The National Association of Insurance Commissioners noted that homeowners paid an average annual premium of $1,192 ($1,606 in 2026 dollars).
- Maintenance and Repair: A general rule of thumb is to expect to spend 1% of your home’s value on them each year; Based on the average home price in 2016 ($4,916 in 2026 dollars), this total would have been $3,649.
- closing cost: These typically range from 2% to 5% of your loan amount, adding several thousand dollars to your upfront cost.
So, which one was cheaper in 2016?
These national averages show that renting was generally affordable in 2016, especially when you consider the gap between mortgage and rent payments and the additional expenses faced by homeowners. However, the answer ultimately depended on the local market and the individual’s situation.
One October 2016 Trulia Report Suggested buyers actually came out ahead in many markets, with costs 37.7% cheaper than renters, assuming they put 20% down and stayed in the home for seven years. Additionally, even though rent was initially cheaper, homeowners enjoyed more stable housing payments and could build equity.
If you’re considering this decision today, run the numbers through a Rent-vs-buy calculator.