Rent vs buy in Lakeville, MN
In Lakeville, Minnesota, the typical rent is $2,101 /mo and the typical home is $484,669.
Over 7 years, renting comes out ahead by $58k
Today's mortgage rate and a 20% down payment are paired with Lakeville's typical rent and home value. The break-even occurs in year 19.
An opinion, clearly labelled, and the math is shown. These are estimates, not quotes. Adjust one number and the stamp shifts.
- Renting is ahead by
- $58k after 7 years
- The break-even point
- Year 19 when owning catches up
- What owning really costs
- $4,277 /mo year 1, against $2,101 rent
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Is renting or buying cheaper in Lakeville?
Include what you get back when you sell, and renting costs $57,641 less over 7 years. For the first 18 years, renting costs less. By year 19, owning has caught up.
Renting. Owning. Net cost to date, by year.
Average rent compared with the mortgage payment in Lakeville
Rent and the mortgage cover only part of the story. Here are all the monthly costs for year 1 at Lakeville's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,101 | All of it, every month |
| Mortgage payment | $2,642 | $2,329 of it is interest in year 1 |
| Property tax | $400 | 0.99% of the value a year |
| Insurance | $154 | Census median for the city |
| Upkeep | $404 | 1% of the value a year |
| Owning, cash out | $3,600 | $313 of it builds equity |
| Lost return on the down payment | $788 | The yearly return on that cash, 8.3% a year |
| Buying costs, spread out | $202 | 3.5% of the price over 7 years |
| True cost of owning | $4,277 | Cash out, minus the equity share, plus the two lines above |
The Lakeville verdict in numbers
- Typical home valueZillow ZHVI, September 2026
- $484,669
- Typical rentZillow ZORI, September 2026
- $2,101 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Minnesota, 1995 to 2025
- 4.3% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Lakeville
- 0.99% of value
- Home insuranceCensus ACS 2020-2024, Lakeville
- $154 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What would change the outcome in Lakeville?
Every line marks where the 7-year verdict in Lakeville switches, with all else left as it is.
Renting comes out ahead when
- Home prices grow at less than 5.7% each year, using 4.3%, Minnesota's rate over the long run.
- The mortgage rate remains above 5.12%.
- Rent for a home like this runs under $2,720 a month (the typical figure: $2,101).
- You move out before year 19.
Buying wins if
- Home prices rise by more than 5.7% each year.
- You secure a mortgage rate below 5.12%, while today's rate is 7.24%.
- Renting this same home would cost you over $2,720 each month.
- You remain there for 19 years or more.
How Lakeville compares with the other 812 cities
| Measure | Lakeville | Median city |
|---|---|---|
| Typical home value | $484,669 | $422,451 |
| Typical rent | $2,101 /mo | $1,837 /mo |
| Price-to-rent ratio | 19.2 (#374 of 813) | 18.5 |
| Home prices, last 10 years | 4.5% a year | 6.2% a year |
| Rents, last 5 years | 3.4% a year | 4% a year |
| Property tax | 0.99% | 0.87% |
| Households that rent | 12% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
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