Renters in select U.S. neighborhoods can achieve substantial savings compared to homeowners, with some areas offering as much as a 77% difference in monthly costs, according to a new analysis by online lender NetCredit. The study examined average rents and homeownership payments across 4,241 neighborhoods and 268 major U.S. cities.

This financial disparity is particularly acute in certain Midwestern, Southern, and West Coast locations. In Atlanta's Wildwood neighborhood, renters save approximately 77.7% over homeowners. Monthly rent in this upscale area averages $1,464, while homeowners pay an average of $6,577. Realtor.com economist Jiayi Xu attributes the high ownership costs in Wildwood to its status as a small, land-constrained area with large lots, proximity to Midtown, and desirable schools, all of which are in high demand. The significant rental discount, according to an Atlanta-based Compass agent, is a result of recent luxury rental construction combined with limited housing supply.

Another area with a significant gap is the Western Hills neighborhood in Omaha, Nebraska. Here, renters pay an average of $913 per month, a 74.9% saving compared to the $3,634 average monthly cost of homeownership. This difference is partly fueled by a surge in new, luxury-leaning homes in the vicinity.

Texas features prominently in the rankings, with multiple neighborhoods showing considerable savings for renters. In Fort Worth, the savings reach 69.5%; in San Antonio, 64.7% and 57.9%; in Austin, 61% and 60.4%; and in El Paso, 56.9%.

The Arts District in Dallas stands out, with an 89.1% difference between renting and buying. Monthly rent averages $1,882, while the cost to buy reaches $17,329. This affluent urban core, characterized by high-end condo towers and a wealthy buyer pool, drives these premium prices.

On the West Coast, the Beverlywood area of Los Angeles offers renters a 78.5% saving compared to homeowners. Bellevue, Washington, leads the nation in city-level savings, with renters saving 71.1%. Average monthly rent in Bellevue is $2,582, while homeownership costs are approximately $8,950. Xu notes that elevated home prices, driven by sought-after school districts, limited housing supply, and high-income tech workers, contribute to these high ownership costs.

San Jose, California, follows, with an average rent of $3,222 compared to $9,096 for homeownership, a difference of 64.6%. Irvine, California, shows a 63.7% disparity, with average rent at $3,361 and homeownership costs at $9,271.

Beyond the Dallas Arts District, two other upscale neighborhoods where the renting-vs-owning disparity exceeds 80% are Barton Creek in Austin, Texas, and Southside Place in Houston, Texas. In Barton Creek, average monthly rent is $2,081 versus $13,708 for homeownership payments, an 84.8% disparity. Southside Place sees rents averaging $2,342 against homeownership costs of $13,760, an 83% difference.

Experts suggest that while renting often saves money in the short term, buying typically represents a stronger choice for long-term wealth accumulation. The decision between renting and buying also depends on market trends and the intended length of stay in a particular home.