The Cost to Buy vs Rent in North Carolina

Owning a home in North Carolina could be well worth it, even though renting is, on the surface, cheaper.

Home prices continue to rise and are even above 2022 highs, says Zillow. Robust employment and high quality of life attract homebuyers, elevating home prices perhaps for years to come.

So how much more is it to buy a single-family home in NC than rent one? Not much more, considering our conservative assumptions: 5% down plus estimated private mortgage insurance (PMI), property taxes, and homeowner’s insurance. See the full methodology at the end of this article.

Higher-than-rent mortgage payments in the state don’t seem to be deterring buyers: homes statewide sit on the market an average of 22 days before going under contract. Is it time for you to get your slice of NC?

Start your NC home purchase now.

Monthly Cost Difference to Buy

1. Charlotte +$1,109
2. Raleigh +$1,439
3. Greensboro +$438
4. Durham +$1,074
5. Winston-Salem +$342
6. Fayetteville +$265
7. Wilmington +$1,073
8. Jacksonville +$400
9. Rocky Mount +$121
10. Lumberton +$117

1. Charlotte

Charlotte is a popular place to buy a home, despite its $1,100-per-month premium over renting. Homes sit on the market just 17 days before going under contract, says Zillow, and they sell for nealy 100% of asking price. Employment and quality of life make Charlotte a favorite for homebuyers.

2. Raleigh

North Carolina’s second-biggest city is also one of the more costly places to buy a home in the state. And with strong employment opportunities available, it’s no wonder. Companies like IBM, Epic Games, and Duke University and Health Systems make high-paying careers abundant.

3. Greensboro

On the other side of the affordability spectrum from Raleigh is Greensboro. The typical single-family home here is just over $250,000, costing an estimated $2,116 per month including PMI, taxes, and homeowner’s insurance. But less expensive doesn’t mean lower quality. The city is big enough to offer arts, entertainment, and employment that rivals big cities without the large-city feel.

4. Durham

Forty-five minutes northwest of Raleigh is Durham. Like Raleigh, prices are higher here, indicating its in-demand status. Purchasing a single-family home will cost around $1,000 more per month than renting one.

Contact a North Carolina lender here.

5. Winston-Salem

Though the fifth largest city in North Carolina, Winston-Salem doesn’t command the same prices as larger cities in The Tar Heel State. At under $250,000 for the typical home, it costs an estimated $342 more per month to own than rent.

6. Fayetteville

Another affordable NC locale is Fayetteville. Though prices here have nearly doubled in the last 10 years according to Zillow, the typical house can be had for about half what it costs in other areas of the state.

7. Wilmington

Kure Beach near Wilmington, North Carolina

This charming town is just miles from Atlantic Ocean beaches, making it an attractive place to buy a home. With recreation so close, it’s no surprise homes are on the more expensive side for the state.

8. Jacksonville

On the banks of New River is Jacksonville. It’s home to Camp Lejeune, a Marine Corps base that also supports the local economy.

9. Rocky Mount

Owning a home in Rocky Mount won’t cost you much more than renting. With a full estimated payment of $1,500 per month based on our methodology below, this town won’t break the bank.

10. Lumberton

Lumberton is the most affordable city on our list. At under $150,000, the typical home can be had for less than $1,300 per month, only about $100 more than renting.

Get Pre-Approved for Your North Carolina Home

Homes in North Carolina are in a range of prices affordable to just about any budget. See what home price you qualify for by requesting your pre-approval from a North Carolina lender.

Find your NC lender.

Methodology

To compare the costs of buying versus renting in 10 North Carolina cities, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2023. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage using a 6.845% rate, the average rate at the time of data collection as published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per rates from mortgage insurance provider MGIC. Then we added annual homeowner’s insurance premiums as reported by Policygenius and property tax data from Roofstock and the U.S. Census Bureau. We assumed zero HOA dues. We compared this total housing payment with rent data from the Zillow Observed Rent Index (ZORI) Smoothed Single Family Residence Time Series except when no data was available, in which case we searched for current rent statistics on Zillow’s site. City selection was based on the highest population except where it made sense to bypass a suburb of a major city to highlight one in a different area.