Despite Elevated Borrowing Costs, Buying Is Cheaper Than Renting in These Affordable U.S. Metros
For the past several years, priced-out prospective homebuyers have retreated into a red-hot rental market for more affordable housing alternatives, but renting isn’t cheaper than buying in all U.S. metro areas. By December 2022, the typical renter in the 50 largest U.S. metros dished out roughly $800 more per month for a starter home than for a rental home of the same size, a recent Realtor.com rental report reveals.
Elevated monthly mortgage payments mean renting is still cheaper than buying in 45 of the 50 largest U.S. metros, but in low-cost cities such as Memphis, Tenn., and Pittsburgh, homebuyers are at a greater advantage.
In Pittsburgh, homebuyers will save about $350 compared with renting—and that’s even with the 21% year-over-year monthly cost increase for buying a home.
For less than an estimated $900 per month, a homebuyer in Pittsburgh can get a two-bedroom home in the Manchester neighborhood, which is within walking distance of the Ohio River.