Check out the cost differences in these 4 Nevada cities

As real estate prices continue to rise, along with rising mortgage rates, home insurance costs, and other housing costs, it may make more financial sense to rent than to buy a home. However, this is not the case everywhere, even in some of Nevada’s most populous cities.

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According to an analysis by real estate price tracking firm CBRE, it costs households on average 38% more to buy a home than to rent. The analysis found that this gap between buying and renting will remain a challenge for prospective homeowners for at least the next five years.

The biggest factor behind these unaffordable housing prices is the nationwide housing shortage. According to the CBRE report, there is an estimated shortage of 3.8 million housing units in the U.S., particularly single-family homes and small multifamily units.

Renters are also heavily cost-burdened. A report from the Harvard Joint Center for Housing Studies found that rents across the country have skyrocketed 26% since the start of 2020. Additionally, as of 2022, half of all renter households were cost-burdened, meaning they spend more than 30% of their household income on housing and utilities.

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Real estate market in Nevada experiences price increases

In Nevada, even some people with six-figure incomes are struggling to afford a home in Washoe County, where home prices have risen 46% since 2019 to $580,000. The county ranks in the top 200 out of 1,300 when it comes to difficulty buying a home, according to an NBC News index.

GOBankingRates recently conducted a study to determine the price difference between renting and buying a home. In all four Nevada cities analyzed, renting was the cheaper option. Here’s a cost breakdown between renting and owning a home in Las Vegas, Henderson, Reno, and North Las Vegas.

Las Vegas

• Total population: 644,835

• Median household income: 66,356 USD

• Average property value: 426,020 USD

• Average monthly mortgage payment: 2,523 USD

• Average monthly rent: 1,792 USD

• Monthly living expenses for homeowners: $4,688

• Monthly living expenses for tenants: $3,958

• Cheaper option: Rental

Henderson

• Total population: 318,063

• Median household income: 85,311 USD

• Average property value: 485,812 USD

• Average monthly mortgage payment: $2,877

• Average monthly rent: 1,925 USD

• Monthly living expenses for homeowners: 5,007 USD

• Monthly living expenses for tenants: 4,055 USD

• Cheaper option: Rental

Reno

• Total population: 265,196

• Median household income: 73,073 USD

• Average property value: 551,222 USD

• Average monthly mortgage payment: 3,264 USD

• Average monthly rent: 1,960 USD

• Monthly living expenses for homeowners: 5,211 USD

• Monthly living expenses for tenants: 3,907 USD

• Cheaper option: Rental

North Las Vegas

• Total population: 264,022

• Median household income: 71,774 USD

• Average property value: 406,543 USD

• Average monthly mortgage payment: $2,407

• Average monthly rent: $1,944

• Monthly living expenses for homeowners: $4,577

• Monthly living expenses for tenants: $4,114

• Cheaper option: Rental

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This article originally appeared on GOBankingRates.com: Renting vs. Buying Real Estate: See the Cost Difference in These 4 Nevada Cities