Rent vs buy in Southfield, MI

In Southfield, Michigan, the typical rent is $1,539 /mo and the typical home is $251,392.

Rent

Renting comes out ahead by $13k over 7 years

At today's mortgage rate, the figures use Southfield's typical rent and home value and 20% down. You reach break-even in year 11.

Clearly labeled opinion, with the math shown. These are estimates, not quotes. The stamp changes whenever a number changes.

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Once sale proceeds are included, renting costs $12,987 less over 7 years. For the first 10 years, renting costs less. By year 11, owning catches up.

The choice is renting. The choice is owning. Net cost through each year.

Year 1 includes more than rent and the mortgage at Southfield's typical price. Here are all monthly costs.

Each month, year 1	Amount	What it is
Rent	$1,539	All of it, every month
Mortgage payment	$1,371	$1,208 of it is interest in year 1
Property tax	$339	1.62% of the value a year
Insurance	$112	Census median for the city
Upkeep	$209	1% of the value a year
Owning, cash out	$2,031	$163 of it builds equity
Lost return on the down payment	$409	At 8.3% a year, this is what the cash would earn.
Buying costs, spread out	$105	3.5% of the price over 7 years
True cost of owning	$2,382	Add the two lines above to cash out, then subtract the equity part.

Typical home valueZillow ZHVI, September 2026: $251,392
Typical rentZillow ZORI, September 2026: $1,539 /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, Michigan, 1995 to 2025: 3.8% 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, Southfield: 1.62% of value
Home insuranceCensus ACS 2020-2024, Southfield: $112 /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

The 7-year Southfield verdict changes at each point shown. Everything else stays as it is.

A yearly home price growth rate below 4.5% applies (using 3.8%, Michigan's long-run rate).
Keeping the mortgage rate above 6.32% is the condition.
For a home like this, rent is less than $1,680 each month (typical here: $1,539).
Moving happens before year 11.