Rent vs buy in Newton, MA
In Newton, Massachusetts, typical rent is $3,358 a month and the typical home costs $1,482,662.
Renting comes out ahead by $317k over 7 years
Using 20% down and today's mortgage rate, with Newton's typical rent and home value. No break-even point appears during 30 years.
Math shown with a clearly marked opinion. Estimates, not quotes. The stamp changes when you change a number.
- Renting leads by
- $317k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- Full cost of owning
- $12,540 a month year 1, against $3,358 rent
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Is renting or buying cheaper in Newton?
Over 7 years, renting costs $316,818 less, including the money you get back when you sell. For every year displayed, renting's net cost is below owning's, and owning never catches up within 30 years.
Choosing to rent. Home ownership. Year-by-year net cost so far.
Average rent compared with mortgage payment in Newton
Rent and a mortgage payment don't tell the full story. For year 1 using Newton's typical price, here's every monthly cost.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,358 | All of it, every month |
| Mortgage payment | $8,083 | $7,125 of it is interest in year 1 |
| Property tax | $976 | 0.79% of the value a year |
| Insurance | $176 | Census median for the city |
| Upkeep | $1,236 | 1% of the value a year |
| Owning, cash out | $10,471 | $959 of it builds equity |
| Lost return on the down payment | $2,410 | Annual earnings on the cash at 8.3% |
| Buying costs, spread out | $618 | 3.5% of the price over 7 years |
| True cost of owning | $12,540 | Subtract the equity part from cash out, then add the two lines above. |
Math behind the Newton verdict
- Typical home valueZillow ZHVI, September 2026
- $1,482,662
- Typical rentZillow ZORI, September 2026
- $3,358 /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, Massachusetts, 1995 to 2025
- 5.1% 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, Newton
- 0.79% of value
- Home insuranceCensus ACS 2020-2024, Newton
- $176 /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 reverse Newton's result?
Every row marks where Newton's 7-year result changes, while all other figures stay the same.
Renting comes out ahead when
- The home price growth rate stays below 7.5% annually. The rate used is 5.1%, Massachusetts's long-run rate.
- A mortgage rate above 3.39% remains in place.
- For a similar home, monthly rent is under $6,750 (typical here: $3,358).
- If you move during the next 30 years, these figures mean owning never catches up.
When buying comes out ahead
- Home prices rise by more than 7.5% a year.
- You lock in a mortgage rate under 3.39%. Today's rate is 7.24%.
- Monthly rent for the same home would exceed $6,750.
How Newton compares with the other 812 cities
| Measure | Newton | Median city |
|---|---|---|
| Typical home value | $1,482,662 | $422,451 |
| Typical rent | $3,358 /mo | $1,837 /mo |
| Price-to-rent ratio | 36.8 (#22 of 813) | 18.5 |
| Home prices, last 10 years | 5% a year | 6.2% a year |
| Rents, last 5 years | 5.2% a year | 4% a year |
| Property tax | 0.79% | 0.87% |
| Households that rent | 30% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Massachusetts cities
- In Boston, MA, renting is $10k cheaper.
- In Worcester, MA, renting is $8k cheaper.
- In Springfield, MA, buying is $18k cheaper.
- In Cambridge, MA, renting is $83k cheaper.
- In Lowell, MA, renting is $9k cheaper.
- In Brockton, MA, renting is $19k cheaper.
- In Lynn, MA, renting is $45k cheaper.
- In Quincy, MA, renting is $51k cheaper.
- In New Bedford, MA, renting is $40k cheaper.
- In Fall River, MA, renting is $29k cheaper.
- A toss-up in Lawrence, MA, with renting ahead by $2k.
- In Somerville, MA, renting is $65k cheaper.