The gap between renting and owning in Indy
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Owning a home is 34% more expensive in Indianapolis than renting, mirroring a national trend playing out across all 100 of the largest U.S. metro areas, per a LendingTree analysis.
Why it matters: Despite Indianapolis being named 2026's most buyer-friendly metro by Zillow and one of the National Association of Realtors top 10 homebuying hot spots, high home prices and mortgage rates could keep some hopeful homeowners left out of our increasingly competitive market.
By the numbers: In Indianapolis, the median monthly gross rent of $1,273 in 2024 was lower than the national median rent of $1,487, per the LendingTree report.
- Indy's median monthly mortgage for 2024 was $1,707, lower than the national median of $2,035.
- The $434 price difference between renting and owning ranks 71st among the 100 metros analyzed by LendingTree.
Between the lines: A growing number of Indianapolis renters are considered severely cost-burdened, meaning they spend more than 50% of their income on housing costs.
- More Hoosiers are living smaller to keep costs down.
Stunning stat: A Realtor.com analysis finds that it takes Indianapolis-area residents seven years to save up the metro's median down payment amount of $29,007, in line with the national average but more than double the pre-pandemic norm.
Zoom out: New York (76%), Bridgeport, Connecticut (75%), and Providence, Rhode Island (67%) — saw the biggest percentage differences between homeowners' and renters' bills.
- San Francisco posted the largest dollar difference: nearly $1,600.
- Even in relatively affordable areas such as Phoenix and Orlando, Florida, renting remains around $200 cheaper per month.
What they're saying: "The cost disparity here could be enough to convince someone that they'll never be able to own a home in some areas, and — unfortunately — they may be right," said Matt Schulz, LendingTree's chief consumer finance analyst, in a statement.
- Homebuyers may have to move to another city to find a place within reach, he says.
What we're watching: President Trump has proposed a raft of policies meant to lower mortgage rates and boost homebuying demand.
- But making housing more affordable is easier said than done.
- Legislation to address rising costs by increasing residential construction is also making its way through the Statehouse.
Go deeper: What 2026 could mean for Indiana's real estate market