Rent vs buy in Racine, WI
Racine, Wisconsin shows a typical rent of $1,215 /mo and a typical home of $216,719.
Renting comes out ahead by $24k over 7 years
Using today's mortgage rate and 20% down, with Racine's typical rent and home value. The break-even point lands at year 18.
An opinion, clearly labelled, with the math shown. These are estimates, not quotes. Adjust any number and the stamp updates.
- Renting leads by
- $24k after 7 years
- Break-even point
- Year 18 when owning catches up
- What ownership really costs
- $2,128 a month year 1, against $1,215 rent
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In Racine, is renting or buying cheaper?
Renting costs less by $24,017 across 7 years, counting what you get back when you sell. For the first 17 years, renting costs less. In year 18, owning catches up.
Renting. Buying. Year-by-year net cost to date.
In Racine, average rent compared with the mortgage payment
Every monthly cost for year 1 appears here, including rent and the mortgage, at the typical price for Racine's homes.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,215 | All of it, every month |
| Mortgage payment | $1,182 | $1,041 of it is interest in year 1 |
| Property tax | $392 | 2.17% of the value a year |
| Insurance | $72 | Census median for the city |
| Upkeep | $181 | 1% of the value a year |
| Owning, cash out | $1,826 | $140 of it builds equity |
| Lost return on the down payment | $352 | The return on that cash at 8.3% a year |
| Buying costs, spread out | $90 | 3.5% of the price over 7 years |
| True cost of owning | $2,128 | Cash out, take out the equity part, then add the two lines above |
The math behind the Racine verdict
- Typical home valueZillow ZHVI, September 2026
- $216,719
- Typical rentZillow ZORI, September 2026
- $1,215 /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, Wisconsin, 1995 to 2025
- 4.1% 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, Racine
- 2.17% of value
- Home insuranceCensus ACS 2020-2024, Racine
- $72 /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 flip the result in Racine?
Each line marks the point where Racine's 7-year verdict changes. All other factors stay as they are.
Conditions where renting wins
- Home prices grow by under 5.5% a year; the figure we use is 4.1%, the long-run rate for Wisconsin's market.
- The mortgage rate remains above 5.26%.
- Homes like this rent for under $1,470 each month (typical here: $1,215).
- You leave before year 18.
Buying comes out ahead when
- Home prices grow at a rate above 5.5% a year.
- You lock in a mortgage rate under 5.26% (today's is 7.24%).
- Monthly rent for that same home would be more than $1,470.
- You remain for 18 years or longer.
Racine vs the other 812 cities
| Measure | Racine | Median city |
|---|---|---|
| Typical home value | $216,719 | $422,451 |
| Typical rent | $1,215 /mo | $1,837 /mo |
| Price-to-rent ratio | 14.9 (#630 of 813) | 18.5 |
| Home prices, last 10 years | 9.3% a year | 6.2% a year |
| Rents, last 5 years | 6.4% a year | 4% a year |
| Property tax | 2.17% | 0.87% |
| Households that rent | 40% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Cities elsewhere in Wisconsin
- In Milwaukee, WI, renting wins by $4k.
- In Madison, WI, renting wins by $79k.
- In Green Bay, WI, renting wins by $62k.
- In Kenosha, WI, renting wins by $15k.
- In Appleton, WI, renting wins by $66k.
- In Eau Claire, WI, renting wins by $76k.
- In Waukesha, WI, renting wins by $99k.
- In Oshkosh, WI, renting wins by $42k.
- In Janesville, WI, renting wins by $65k.
- In West Allis, WI, renting wins by $30k.
- In La Crosse, WI, renting wins by $44k.