In today’s housing market, the age-old debate of buying versus renting has taken a dramatic turn. For much of American history, homeownership has been viewed as a rite of passage and a solid long-term investment. But as we enter the second half of 2025, that equation is changing.
Rising mortgage rates, inflated home prices, and tightening inventory have pushed many would-be buyers out of the market. In fact, a new study reveals that in most U.S. cities, it’s now significantly cheaper to rent than to buy. But amidst the national affordability crisis, one city has emerged as a notable outlier: Peoria, Illinois.
The National Shift: Renting Now Cheaper in 85% of U.S. Cities
The data is clear. According to the recent Yahoo article and supporting studies, renting is now the more cost-effective option in the vast majority of U.S. cities. This shift is driven by several key factors:
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Mortgage rates have more than doubled since 2021, hovering around 6.5% to 7% in many markets.
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Home prices remain historically high, despite a slight cooling in some areas.
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Down payments, property taxes, and maintenance costs add significant burden for homeowners.
As a result, the monthly cost of owning a home (including mortgage, insurance, taxes, and upkeep) now far exceeds the average cost of renting in cities like San Francisco, Los Angeles, Seattle, Denver, and New York.
Peoria: A Hidden Gem for Buyers
Amid this nationwide trend, Peoria stands out as a rare city where buying still makes financial sense. According to the report, Peoria is one of only 32 cities in the U.S. where monthly mortgage payments remain lower than rent for comparable properties.
So, what makes Peoria different?
Lower Home Prices
Peoria has a relatively low median home price, hovering around $130,000 to $150,000—a fraction of what buyers face in coastal or high-growth markets.
Balanced Supply and Demand
Unlike major metros that saw housing booms during the pandemic, Peoria’s housing market has remained stable and relatively insulated from speculative spikes.
Modest Rent Growth
While many cities saw rent prices soar post-2020, Peoria’s rental market has grown at a more manageable pace, keeping the rent vs. buy gap in check.
These factors make Peoria a financially advantageous location for homebuyers, especially first-time buyers or remote workers looking for affordability and quality of life.
Buying vs. Renting: Which Is Right for You?
While Peoria may offer a unique opportunity, the buy vs. rent decision depends heavily on personal and financial circumstances. Here are a few things to consider:
Reasons to Rent in 2025
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Flexibility: If you’re unsure where you’ll be in 1–3 years, renting offers the ability to move without selling.
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Lower upfront costs: No down payment, closing fees, or major maintenance expenses.
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Market volatility: Home values in some regions remain unpredictable, and renting reduces your exposure to potential losses.
Reasons to Buy (Especially in Cities Like Peoria)
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Lower monthly payments (in select markets): In Peoria, buying may actually cost less each month than renting.
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Equity building: With each mortgage payment, you’re building ownership in a long-term asset.
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Stability and control: No rent increases, no landlord decisions—you’re in charge.
The Local Lens Matters More Than Ever
This study drives home a vital point: real estate is hyperlocal.
Just because renting is the better option in one city doesn’t mean it’s true everywhere. In fact, this national “rent-over-buy” narrative might cause some buyers to overlook opportunities in cities like Peoria, where the math still favors ownership.
Even in cities where renting is currently cheaper, that can change over time. Local job growth, housing supply, and demographic trends all affect the balance.
Smart Strategies for 2025 Buyers and Renters
If you’re weighing your options this year, here are some tips to help guide your decision:
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Use rent vs. buy calculators specific to your ZIP code. Don’t rely on national averages—run the numbers locally.
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Explore smaller cities and secondary markets (like Peoria!) that offer more favorable affordability metrics.
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Factor in hidden costs of homeownership—like maintenance, taxes, and HOA dues—to get the full picture.
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Be patient but prepared: Markets are shifting. If you’re not ready to buy now, rent strategically while saving and monitoring interest rates.
Final Thoughts
For millions of Americans, renting is now the more practical, affordable, and flexible housing option—especially in high-cost metros. But Peoria proves that opportunities for affordable homeownership still exist. It’s a reminder that the housing market is not one-size-fits-all, and real value lies in knowing your local market inside and out.
If you’re looking for a path to homeownership in 2025, don’t write off buying completely—especially if you’re willing to consider under-the-radar cities like Peoria.
Title Suggestion:
“Buying vs. Renting in 2025: Why Peoria Is One of the Few Cities Where Homeownership Still Makes Sense”
Source: Yahoo News