Renting is Still More Affordable than Buying in All but Two Major U.S. Metros
Average U.S. median asking rents reached $1,703, declining a moderate 0.2% year over year
AUSTIN, Texas, Feb. 18, 2025 /PRNewswire/ -- Most metros have become more affordable for both buyers and renters in the past year; however, renting a median-priced unit is still more affordable for median wage earners than buying the median priced for-sale listing in all major U.S. metros except Detroit and Pittsburgh, according to the Realtor.com® January Rent Report. Last January there were six markets where buying was less expensive than renting, which shows the impact of the consistent retreat of rental prices and the persistence of high mortgage rates. Over the past year, the market as a whole has moved in a more renter-friendly direction.
"For most Americans owning a home is still a big part of the American Dream, yet the lower monthly costs of renting in all but 2 of the 50 largest markets are a key consideration," said Danielle Hale, chief economist, Realtor.com®. "This relative cost advantage is one of the reasons we expect an increase in renter households and declines in the homeownership rate in 2025."
Why is it More Affordable to Buy in Detroit and Pittsburgh?
Pittsburgh and Detroit are the two metros with the lowest median listing prices of our top 50 metros, with Pittsburgh at $229,700 and Detroit at $239,950. These Rust Belt metros are often among our most affordable ones when it comes to buying a home, and with the share of income used on rent increasing year over year in Detroit and remaining nearly flat in Pittsburgh, buying a home has actually become more economical than renting one.
Is Renting Finally as Affordable as Before the Pandemic?
Even though rents are falling, renters are still feeling the pinch from the rapid rent growth of 2021 and 2022. While January 2025's rent figure is lower than both January 2024 and January 2023's, it still exceeds January 2020 by $257 (16.1%).
Buy or Rent Favoring… Which Markets Fall Where?
While renting remains more affordable than buying across most metros, this report looks at the relationship among wage growth, mortgage rates, median rent and media listing price to see which metros are rent-favoring and which metros are buy- favoring.
Three metros–New York; San Jose, Calif.; and Detroit–are the only metros where the share of income used on both rent and buying a home are growing. In these metros it takes more income to both rent the median priced rental unit and buy a median priced home, becoming both less renter and less buyer-favoring.
One metro, Kansas City, Kan., is becoming more buyer-favoring. In Kansas City, a higher share of income is spent on rents and a lower share of income on buying. There are 18 metros that have become rent-favoring and where more of the median earner's income is needed to buy a home than a year ago.
Metros Becoming More Renter-Friendly and Less Buyer-Friendly
Metro | Percent of Income Spent on | Percent of Income Spent |
Baltimore-Columbia-Towson, MD | 2.2 % | -0.4 % |
Boston-Cambridge-Newton, MA-NH | 1.0 % | -0.2 % |
Charlotte-Concord-Gastonia, NC-SC | 1.4 % | -1.4 % |
Chicago-Naperville-Elgin, IL-IN | 0.2 % | -1.4 % |
Houston-Pasadena-The Woodlands, | 0.2 % | -1.3 % |
Las Vegas-Henderson-North Las | 0.5 % | -1.9 % |
Los Angeles-Long Beach-Anaheim, CA | 1.2 % | -1.8 % |
Memphis, TN-MS-AR | 0.4 % | -2.4 % |
Milwaukee-Waukesha, WI | 3.0 % | -0.1 % |
Minneapolis-St. Paul-Bloomington, MN- | 0.6 % | -0.4 % |
Philadelphia-Camden-Wilmington, PA- | 1.4 % | -0.9 % |
Pittsburgh, PA | 0.6 % | -0.3 % |
Portland-Vancouver-Hillsboro, OR-WA | 0.3 % | -0.7 % |
Riverside-San Bernardino-Ontario, CA | 1.8 % | -2.1 % |
Virginia Beach-Chesapeake-Norfolk, | 1.9 % | -0.4 % |
National Rental Data – January 2025
Unit Size | Median Rent | Rent YoY | Rent Change - 5 |
Overall | $1,703 | -0.2 % | 16.1 % |
Studio | $1,423 | 0.0 % | 11.4 % |
1-Bedroom | $1,585 | -0.1 % | 16.0 % |
2-Bedroom | $1,887 | -0.2 % | 20.0 % |
50 Largest Metropolitan Areas – January 2025
Metro | Median Rent | YoY Change | Share of | Share of |
Atlanta-Sandy Springs-Roswell, GA | $1,565 | -2.9 % | 21.4 % | 28.4 % |
Austin-Round Rock-San Marcos, TX | $1,467 | -4.8 % | 17.2 % | 30.3 % |
Baltimore-Columbia-Towson, MD | $1,786 | 0.1 % | 22.5 % | 23.1 % |
Birmingham, AL | $1,201 | -2.9 % | 20.1 % | 24.9 % |
Boston-Cambridge-Newton, MA-NH | $2,925 | 0.5 % | 32.1 % | 45.8 % |
Buffalo-Cheektowaga, NY | NA | NA | NA | NA |
Charlotte-Concord-Gastonia, NC-SC | $1,520 | -1.2 % | 22.4 % | 32.3 % |
Chicago-Naperville-Elgin, IL-IN | $1,776 | -3.6 % | 24.6 % | 24.8 % |
Cincinnati, OH-KY-IN | $1,326 | -0.7 % | 19.9 % | 25.0 % |
Columbus, OH | $1,184 | 0.7 % | 17.7 % | 26.5 % |
Dallas-Fort Worth-Arlington, TX | $1,445 | -3.5 % | 19.5 % | 29.3 % |
Denver-Aurora-Centennial, CO | $1,796 | -5.6 % | 20.2 % | 33.4 % |
Detroit-Warren-Dearborn, MI | $1,313 | 1.3 % | 21.7 % | 20.7 % |
Hartford-West Hartford-East Hartford, CT | NA | NA | NA | NA |
Houston-Pasadena-The Woodlands, TX | $1,359 | -1.8 % | 20.7 % | 28.5 % |
Indianapolis-Carmel-Greenwood, IN | $1,280 | -1.7 % | 19.3 % | 23.6 % |
Jacksonville, FL | $1,510 | -1.0 % | 22.1 % | 29.4 % |
Kansas City, MO-KS | $1,352 | 4.2 % | 20.3 % | 29.3 % |
Las Vegas-Henderson-North Las Vegas, | $1,457 | -2.2 % | 24.1 % | 40.4 % |
Los Angeles-Long Beach-Anaheim, CA | $2,736 | -2.6 % | 35.9 % | 74.7 % |
Louisville/Jefferson County, KY-IN | $1,244 | 0.5 % | 20.6 % | 26.4 % |
Memphis, TN-MS-AR | $1,177 | -4.3 % | 21.1 % | 30.8 % |
Miami-Fort Lauderdale-West Palm Beach, | $2,328 | -1.9 % | 37.6 % | 43.9 % |
Milwaukee-Waukesha, WI | $1,611 | -0.2 % | 26.1 % | 30.6 % |
Minneapolis-St. Paul-Bloomington, MN-WI | $1,507 | 0.2 % | 18.7 % | 27.5 % |
Nashville-Davidson--Murfreesboro-- | $1,539 | -2.5 % | 21.7 % | 38.6 % |
New Orleans-Metairie, LA | NA | NA | NA | NA |
New York-Newark-Jersey City, NY-NJ | $2,973 | 5.8 % | 37.6 % | 49.5 % |
Oklahoma City, OK | $1,021 | 1.5 % | 17.1 % | 27.4 % |
Orlando-Kissimmee-Sanford, FL | $1,676 | 0.0 % | 26.8 % | 35.1 % |
Philadelphia-Camden-Wilmington, PA-NJ- | $1,754 | -0.5 % | 23.8 % | 24.9 % |
Phoenix-Mesa-Chandler, AZ | $1,488 | -3.5 % | 20.4 % | 36.6 % |
Pittsburgh, PA | $1,431 | 0.2 % | 23.5 % | 19.7 % |
Portland-Vancouver-Hillsboro, OR-WA | $1,665 | -0.3 % | 21.1 % | 39.6 % |
Providence-Warwick, RI-MA | NA | NA | NA | NA |
Raleigh-Cary, NC | $1,486 | -2.3 % | 18.2 % | 28.1 % |
Richmond, VA | $1,481 | -0.3 % | 20.3 % | 30.2 % |
Riverside-San Bernardino-Ontario, CA | $2,065 | -4.1 % | 28.8 % | 43.6 % |
Rochester, NY | NA | NA | NA | NA |
Sacramento-Roseville-Folsom, CA | $1,885 | 1.0 % | 24.2 % | 41.1 % |
San Antonio-New Braunfels, TX | $1,238 | -2.1 % | 20.3 % | 27.8 % |
San Diego-Chula Vista-Carlsbad, CA | $2,695 | -4.8 % | 31.4 % | 57.7 % |
San Francisco-Oakland-Fremont, CA | $2,708 | -3.3 % | 24.3 % | 41.4 % |
San Jose-Sunnyvale-Santa Clara, CA | $3,287 | 2.4 % | 25.2 % | 50.7 % |
Seattle-Tacoma-Bellevue, WA | $1,969 | -0.2 % | 20.8 % | 40.1 % |
St. Louis, MO-IL | $1,316 | 1.4 % | 19.8 % | 21.6 % |
Tampa-St. Petersburg-Clearwater, FL | $1,710 | -1.6 % | 28.1 % | 34.0 % |
Virginia Beach-Chesapeake-Norfolk, VA-NC | $1,494 | -0.8 % | 22.3 % | 30.4 % |
Washington-Arlington-Alexandria, DC-VA- | $2,247 | 2.3 % | 21.9 % | 29.3 % |
Methodology
Rental data as of January 2025 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019. Metro-level income is sourced from Claritas and median listing price data comes from Realtor.com listing data. Year over year affordability data has been recalculated with updated cost and income figures and is not directly comparable to previous iterations of rent-vs-buy analysis.
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
Media Contact: Mallory Micetich, [email protected]
SOURCE Realtor.com
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