Suburbs Where Buying Is Now Cheaper Than Renting: Chicago Home Shoppers See Unusual Opportunities

For the first time in years, monthly payments for a mortgage are undercutting average rents in a swath of Chicago’s inner-ring suburbs. Market watchers and agents alike say buyers looking in places such as Berwyn and Homewood could end up spending less per month to own than to lease, marking a dramatic shift from recent trends.

This flip in economics comes as Chicago renters face surging lease renewals, with regional rents up 5% over the past year according to Midwest Real Estate Data. With the city’s rental occupancy at a decade-high—over 97% in May, per Cushman & Wakefield—competition is intense, pushing more would-be tenants to explore the math of buying. The new calculus follows steady mortgage rate declines since March, giving buyers a rare window even as home values edge upward across Cook County.

Berwyn, Homewood Lead Local Reversal

The shift is especially visible west and south of the Loop. In Berwyn, a popular commuter suburb off Ogden Avenue, a typical two-bedroom apartment now rents for $1,900, according to Zillow’s most recent rental index. Meanwhile, the monthly payment on a $235,000 bungalow—with 10% down and a 5.75% fixed mortgage—lands at just $1,783 including estimated taxes and insurance. "We're fielding more first-time buyers here than ever before," said a longtime agent with Developintown Realty based near Roosevelt Road, citing a surge in open house traffic since spring.

Homewood, nestled along the Metra Electric, tells a similar story. Average advertised rent for a three-bedroom apartment hit $2,200 in June, but recent sales on single-family homes priced at $275,000 bring all-in monthly costs close to $2,090. Markers of this are on display along streets like Olive Road and Harwood Avenue, where 'For Sale' and 'Under Contract' signs are cropping up at a pace not seen since before the pandemic. Local lenders, including the Southland Credit Union, report a jump in pre-approval applications this quarter.

Crunching the Numbers

This affordability flip isn’t universal, but the numbers hold across several suburbs with mid-tier home values and stable tax rates. According to an analysis by Midwest Real Estate Data updated July 1, seven out of 22 Cook County suburbs under $300,000 median price now show lower average buy-side payments than the median rental cost for similar properties. In Skokie and Oak Park, gaps have narrowed but have yet to invert; in Berwyn and Homewood, homeowners are saving on average $100-$150 monthly compared to new renters signed since Memorial Day. It’s a reversal from just two years ago—when cheap pandemic-era rents and mortgage spikes made owning the pricier bet nearly everywhere around Chicago.

One driver is softening home-price appreciation in the suburbs; year-over-year increases slowed to 3.1% in May, versus 7.4% in 2022. Meanwhile, average rents ticked up by more than $75 per month since January, according to ApartmentList’s July market update. Experts predict the price gap between renting and buying could widen further if rates hold steady through fall.

For house-hunters considering a move, local initiatives like the City of Berwyn's Homebuyer Assistance Program—which offers grants up to $10,000 for qualified buyers—may sweeten the deal. Agents urge would-be owners to scrutinize all-in costs, including insurance and higher suburban property taxes. Still, if current trends persist, buyers could tip the suburban housing equation in their favor for the first time since 2020.