Press release
Realtor.com® August Rental Report: Renting Beats Buying in All but Three of the Largest U.S. Metros
Buying a starter home in the top 50 metros cost $1,111 (60.3%) more than renting in August, as median U.S. rents see fourth consecutive month of
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[{"type":"text","content":"Buying a starter home in the top 50 metros cost $1,111 (60.3%) more than renting in August, as median U.S. rents see fourth consecutive month of year-over-year declines\nSANTA CLARA, Calif., Sept. 21, 2023 /PRNewswire/ -- The elevated mortgage rates, steep home prices and declining rent costs familiar in today's housing market have made it less costly to rent than to buy a starter home in all but three of the largest metros in the U.S., according to the Realtor.com® Monthly Rental Report released today. In August 2023, the cost of buying a starter home in the top 50 metros was $1,111 (60.3%) higher than renting in those markets on average.\n\n\"Rents have registered steady declines for the past four months and, while they remain well above pre-pandemic levels, when you factor in the impact of record-high mortgage rates and high home prices, it's understandable that many would-be homebuyers are choosing to remain on the sidelines,\" said Danielle Hale, Chief Economist at Realtor.com®. \"The downward trend in rental prices reduces the sense of urgency, giving renters more time to save for a home. In the period ahead as rents soften, we expect more households will remain renters for longer.\"\nAugust 2023 Rental Metrics – National\nUnit Size\nMedian Rent\nRent YoY\nRent Change - 4 years\nOverall\n$1,752\n-0.6 %\n23.7 %\nStudio\n$1,463\n-0.2 %\n18.4 %\n1-bed\n$1,634\n-0.5 %\n23.6 %\n2-bed\n$1,948\n-0.7 %\n26.4 %\nNationally, rents drop for fourth straight month, while homebuying costs increaseMedian rents for 0-2 bedroom units declined consistently year-over-year for the past four months which, when combined with mortgage rates hovering above 7% and a low enough supply to drive prices up despite subdued demand, tipped the scales further in favor of renting. In August, homeownership costs exceeded renters' monthly costs by nearly $300 compared with the start of the year.\nAugust marked the fourth month of year-over-year rent declines in a row for 0-2 bedroom properties, which overall are down -0.6% year-over-year. Rents dropped -0.7% for 2-bedrooms, -0.5% for 1-bedrooms, and -0.2% for studios.Specifically, the median asking rent in the 50 largest metros dipped to $1,752, down $7 from last month and down $25 from the peak in July 2022. However, median rents remain $336 (23.7%) higher than the same time in 2019, prior to the pandemic.I...