LESTER HOLT: It's an age-old question, and so many people are asking it in this tight housing market. Should you rent or buy a home? CNBC's Diana Olick now with a new report just out about that, and it may surprise you.
DIANA OLICK: Claire Murray has been renting for almost a decade. The 30-year-old pharmaceutical researcher says she can afford to buy a home but isn't sure it's the right investment for her.
CLAIRE MURRAY: I have seen the economy change. I have seen the house market really balloon up in a way that kind of scares me from buying a home right now.
OLICK: Home ownership has become so expensive that renting a home is now cheaper than buying one in all 50 of the largest U.S. cities, according to a new report from Bankrate.
ALEX GAILEY: Buying a home is pretty expensive due to high mortgage rates, high home prices, and there's also a lot of competition in the market because there is low inventory.
OLICK: The monthly mortgage payment for a median priced home, which is around $412,000, was $2,703 as of February of this year. That includes property taxes and insurance. Compare that to the national monthly rent of $1,979, which includes renter's insurance. That's a 37% gap between the two. In some cities that gap is even wider including San Francisco, Seattle, Salt Lake City, Austin, Denver and Dallas. Cities with the smallest gaps, though still more expensive to own, include Detroit, Pittsburgh, Philadelphia, Cleveland, St. Louis and Tampa. It's all giving today's renters a different take on the so-called dream of home ownership.
MURRAY: I think renting can also be a good financial decision. And I don't know if society's always viewed it that way.
OLICK: While the math shows renting is cheaper, it doesn't factor home appreciation into the equation. Historically, home prices have gone up over time, making home ownership one of the best ways to build wealth. Lester.
HOLT: Diana Olick. Thank you.