Renting vs. Owning in Peoria: What You’ll Pay
When deciding between renting an apartment or buying a house in Peoria, cost is a key factor. The average rent for a 2-bedroom apartment in Peoria is around $1,800 per month, while the typical mortgage payment for a 3-bedroom house is closer to $2,450. The average rent for a 3BR house in Peoria is $2,200/month. Of course, the total cost of living in an apartment vs house in Peoria depends on many variables beyond the monthly payment.
Renting tends to come with lower upfront costs and more predictable monthly expenses. Owning a home means taking on additional costs like property taxes, insurance, and maintenance, but allows you to build equity over time. Lifestyle preferences also play a role – apartments often offer amenities and low-maintenance living, while houses provide more space and privacy.
Let’s take a closer look at the key costs and considerations when comparing apartments and houses in Peoria.
Cost Comparison: Apartment vs House in Peoria
Here’s a side-by-side breakdown of common monthly costs in Peoria:
| Expense | 2BR Apartment | 3BR House |
|---|---|---|
| Rent/Mortgage | $1,800 | $2,450 |
| Utilities | $150 | $250 |
| Internet | $60 | $70 |
| Insurance | $15 | $120 |
| Maintenance | $0 | $200 |
| HOA Fees | $250 | $50 |
| Total | $2,275 | $3,140 |
Estimates are for mid-range units with typical usage. All income figures are expressed in gross monthly income (pre-tax).
As you can see, the total monthly cost for a house is nearly $900 higher on average than renting an apartment in Peoria. However, this doesn’t account for the long-term financial benefits of homeownership like tax deductions and building home equity.
Utility and Upkeep Differences
Utility costs tend to be higher in houses than apartments due to the larger space and higher energy demands. Some key differences:
- Houses have more exterior walls and higher ceilings, requiring more energy to heat and cool
- Older houses may have less efficient appliances, windows, and insulation
- Water bills are higher with more bathrooms, outdoor irrigation
- Houses have individual meters; apartments often include some utilities
Maintenance is another significant cost difference. Homeowners are solely responsible for repairs, yard work, pest control, and other upkeep, which can add hundreds per month. Renters have most property maintenance covered by the landlord or HOA.
Lifestyle Tradeoffs
Finances aren’t the only consideration when deciding between an apartment or house. Lifestyle fit is equally important. Apartments tend to offer greater flexibility, mobility, and convenience, with amenities like pools, gyms, security, and on-site maintenance. They’re often located in more walkable areas near dining, shopping, and entertainment.
Houses, on the other hand, provide more privacy, space, and control over your environment. They allow room to grow, space for pets, private outdoor areas, and the freedom to customize the property. Many Peoria residents choose apartments for walkability and convenience, while families often prefer houses for the extra bedrooms and yard space.
Which Is Cheaper Long Term in Peoria?
While renting is cheaper on a monthly basis, owning a home can be more cost-effective long term. Let’s compare the 5-year cost of renting a $1,800 apartment vs. buying a $400,000 house in Peoria:
- Total rent paid over 5 years: $108,000
- Total mortgage paid over 5 years: $147,000 (assuming 20% down)
- However, $25,000 of mortgage payments go toward home equity
- Homeowner also benefits from $30,000+ in tax deductions
- Home value appreciates: average Peoria home gained $100,000 in last 5 years
So while the homeowner paid $39,000 more in mortgage payments, they came out over $80,000 ahead compared to the renter, considering equity gains and tax savings. Of course, this doesn’t account for the higher maintenance and utility costs of homeownership.
FAQs About Housing Costs in Peoria
How much more does a house cost per month?
On average, houses in Peoria cost about $900 more per month than apartments when you consider rent/mortgage, utilities, insurance, maintenance, and HOA fees.
Do houses always have higher utility bills?
In most cases, yes. Houses are larger, with more exposure to the elements, so they require more energy to heat, cool, and power. Newer houses with energy-efficient features can help reduce utility costs.
Are apartments cheaper even with pet fees?
For most pet owners, apartments are still cheaper than houses, even factoring in pet rent and deposits. The difference in rent and utilities outweighs the additional pet expenses. However, houses offer more pet-friendly features like yards and separation from neighbors.
Making the Right Housing Choice in Peoria
Both apartments and houses have their advantages and tradeoffs when it comes to cost of living in Peoria. Renting is cheaper in the short term and offers greater flexibility, while buying can be more cost-effective long term and provides a sense of ownership.
Ultimately, the right choice depends on your unique budget, lifestyle, and priorities. Be sure to consider the full picture, including upfront costs, monthly expenses, location, amenities, space requirements, and investment potential. For more insights, check out these resources: