14 Markets Where It’s More Affordable to Buy than Rent
Renting is currently more cost-effective than owning a home in most major U.S. markets, even when factoring in potential equity gains from home appreciation. Historically, renting has been cheaper than owning based on median costs, though that assessment ignores the equity benefit of homeownership. According to a recent report from First American Financial, even when including equity, renting still comes out ahead in most places as of Q2 2025. Even so, the decision to rent or buy remains largely dependent on local market conditions, and with home price growth continuing to slow, there are some markets where buying may make more financial sense.
Where is it better to buy than rent?
When strictly comparing total monthly median rents to homeownership costs, renting in Q2 2025 was the more affordable option across all of the 50 largest U.S. housing markets. However, when factoring in potential equity gains from rising home values, owning turned out to be the better financial choice in 14 metro areas. Cities where owning had the advantage in Q2 2025 include Louisville, Ky; Hartford, Conn.; Buffalo, N.Y.; Pittsburgh, Pa.; and Milwaukee, Wisc. Homeowners in these areas potentially gain between $400 and $500 more per month in value versus renting.
In those 14 markets, equity makes buying more worthwhile than renting, but how do the costs actually break down?
In 14 of the largest 50 metros, building equity can make buying a home more financially attractive than renting. For example, in Baltimore, homeownership costs about $2,355 per month, but with a 4.1% annual home-price increase recorded in that market as of Q2 2025, the effective cost drops to $1,440, which is cheaper than Baltimore's $1,660 median rent.
On the other hand, in San Francisco, where home values fell 6% over the past year, the monthly ownership cost of around $6,305 jumps to $10,000 when factoring in lost equity, far above the $2,500 median rent.
Still, growing home prices are causing renting to become a more popular choice—especially when it comes to single-family rentals
- Rentership Surges Above Homeownership in the Suburbs: Although suburbs have traditionally been popular with homeowners, this trend is shifting. There are now 203 suburbs across the top 20 largest U.S. metros where there are more renters than homeowner households.
- Renters Are Swapping Out Apartments for Single-Family Homes: As of March 2025, 60% of renters moving into single-family homes came from traditional apartment properties.