Renting Surpasses Homeownership as the More Affordable Option in US Metro Areas

Renting has become the more affordable option in the largest 50 metros across the U.S. as mortgage rates and home prices remain high, with the monthly cost for a starter home roughly $1,027 more than the average monthly rent. While the falling cost of rent contributes to this trend, prices are still significantly higher compared to pre-pandemic times, with the U.S. median rent only $50 less than its peak in August 2022. Despite the financial advantage of renting, it does not bring the benefit of housing wealth gains over time that owning does, prompting people to consider their long-term housing plans. The top 10 metros with the largest rent savings when compared to buying include Austin, Seattle, and Phoenix.