Is Renting Actually Cheaper Than Buying Right Now?

According to recent data, the median sales price of a home in Chicago has surpassed $340,000, while the average rent for a one-bedroom apartment is around $1,800 per month. This has led many to wonder: is renting actually cheaper than buying right now?

This question matters now more than ever, as the city's population continues to grow and housing options become increasingly limited. With the ongoing redevelopment of neighborhoods like Logan Square and Pilsen, long-time residents are being priced out of their own communities, forcing them to consider alternative options. The Chicago Housing Authority's waitlist for subsidized housing has over 50,000 applicants, highlighting the urgent need for affordable solutions.

In neighborhoods like Wicker Park and Bucktown, where trendy bars and restaurants line streets like Milwaukee Avenue and Damen Avenue, renters can find relatively affordable options. For example, a one-bedroom apartment in a building on North Avenue might cost around $1,600 per month, while a similar unit in a newer high-rise on the West Loop's Madison Street could go for over $2,500. Organisations like the Chicago Community Land Trust and the Metropolitan Planning Council are working to address affordability concerns through initiatives like community land trusts and inclusive zoning policies.

A Closer Look at the Numbers

A review of data from the past year shows that the average monthly mortgage payment for a home in Chicago is around $2,200, assuming a 20% down payment and a 30-year mortgage at 6% interest. In contrast, the average rent for a one-bedroom apartment in the city is around $1,800 per month. According to a report by the Chicago Association of Realtors, the median sales price of a home in the city has increased by over 10% in the past year alone, with some neighborhoods like Lincoln Park and the Gold Coast seeing even higher gains. As of June 2026, the inventory of homes for sale in Chicago is down by over 15% compared to the same time last year, further driving up prices.

So, what does this mean for prospective buyers and renters in Chicago? For those who can afford the upfront costs, buying may still be a viable option, especially considering the long-term benefits of building equity. However, for many, renting may indeed be the more affordable choice, at least in the short term. As the city continues to evolve and housing options shift, it's essential for residents to stay informed and explore all available options, from community land trusts to rent control initiatives. By doing so, Chicagoans can make informed decisions about their housing choices and work towards creating a more affordable, equitable city for all.