W
ith mortgage rates at historic lows and housing inventory on the rise, renters in Florida and other Sun Belt destinations may be poised to make the leap into homeownership. According to Zillow Home Loans, 22 of the largest metropolitan areas in the US are experiencing a buyer-friendly climate, including Miami and Tampa.

    In these cities, owning a home could be more cost-effective than renting, with average monthly savings ranging from $191 in Tampa to $450 in New Orleans. Even in expensive markets like New York City, homeownership may offer some benefits, although the savings would be relatively modest at around $72 per month.

    Zillow's analysis assumes a 20% down payment and interest rates averaging 6.5%, but experts warn that coming up with the down payment remains a significant barrier to entry. However, for those who can make it work, homeownership may offer lower monthly costs and the opportunity to build long-term wealth through home equity.

    Rents have leveled off after pandemic-era market fluctuations, but prices remain 3.4% higher than in 2023 and nearly 34% pricier than in early 2020. Meanwhile, one in four US sellers are now reducing prices to accommodate a softening market, suggesting that buyers may be able to negotiate better deals.