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.
Advertisement
Related Stories
Market Data + Trends
Hottest Markets for Rental Activity in February
Looking at February's rental activity, the West continued to be the most desirable region for apartment hunters for the second month in a row, with the South close behind
Build to Rent
Yes, Rents Are Cooling, But How Much Varies by Market
Excess supply has helped to slow rent increases in some markets, and rent growth is moderating across a wider range of markets than in previous years, but affordability concerns persist
House Review
4 Single-Family Build-to-Rent Home Designs Offering Comfort and Construction Efficiency
Single-family rentals are popular. Take a look at these detached-home design ideas for the single-family build-to-rent market, one of the fastest-growing segments of single-family construction