Renting Is Now Cheaper Than Buying in Nearly All Major Metros

It’s no surprise that renting has become the preferred option for many households due to rising costs, but renting is now more affordable in all 50 of the largest metros in the U.S. This is according to financial services company Bankrate’s 2025 Rent vs. Buy Study, which found that over the last year, average mortgage payments increased while average rents either declined or remained stable in nearly all of the metros analyzed. Nationwide, the average mortgage payment now costs 38% more per month than the average rental rate.

The affordabilty gap is most evident in West Coast markets, such as San Francisco, San Jose, Calif., and Seattle. However, the price gap between renting and buying is much smaller in Rust Belt markets, including Detroit, Philadelphia, and Cleveland.

Housing experts said the fact that it’s cheaper to rent in all 50 metros is a broader reflection of rental and housing market conditions across the country. High mortgage and home prices, combined with limited housing inventory, have created a high barrier to entry for aspiring homeowners. Rising property taxes and homeowners insurance rates are also straining homeowners’ budgets. At the same time, rents have experienced a slowdown in growth and rental inventory has dramatically increased, giving renters more options to choose from.

There are still long-term financial benefits to owning a home, but hopeful buyers entering the market now should plan to make a larger down payment or allocate a larger portion of their monthly budget to their mortgage payment, experts said. Read more