Press release
Realtor.com® February Rental Report: Renting Now Beats Buying in All of the Largest U.S. Metros
The top 5 metros with the largest savings for renters include Austin, Texas; Seattle; Phoenix; San Francisco and Los Angeles SANTA CLARA, Calif., March 26,
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[{"type":"text","content":"The top 5 metros with the largest savings for renters include Austin, Texas; Seattle; Phoenix; San Francisco and Los Angeles \nSANTA CLARA, Calif., March 26, 2024 /PRNewswire/ -- Elevated mortgage interest rates, still-high home prices and falling rents have made it more affordable to rent than buy in all of the top 50 U.S. metros, according to the Realtor.com® Rental Report released today. In February, the mortgage payment on a starter home in the largest metros cost $1,027 (+60.1%) more than the monthly rent in those markets, on average. At the same time last year, 45 metros favored renting.\n\nThe top 10 metros with the largest rent versus buy savings (see below for top 50 metros):1. Austin-Round Rock-Georgetown, Texas – $2,165 monthly rent savings (141.5% difference)2. Seattle-Tacoma-Bellevue, Wash. – $2,422 (121.1%)3. Phoenix-Mesa-Chandler, Ariz. – $1,528 (99.0%)4. San Francisco-Oakland-Berkeley, Calif. – $2,689 (95.5%)5. Los Angeles-Long Beach-Anaheim, Calif. – $2,539 (89.7%)6. San Jose-Sunnyvale-Santa Clara, Calif. – $2,780 (86.7%)7. Nashville-Davidson-Murfreesboro-Franklin, Tenn. – $1,366 (86.0%)8. Portland-Vancouver-Hillsboro, Ore. Wash. – $1,396 (84.4%)9. Sacramento-Roseville-Folsom, Calif. – $1,514 (82.1%)10. Houston-The Woodlands-Sugar Land, Texas – $1,103 (80.0%)\n\"With rents continuing to fall and the cost of buying a home remaining high, exacerbated by the rise in mortgage rates in the later half of 2023, renting a home is now a more cost-effective option in all major U.S. markets,\" said Danielle Hale, Chief Economist at Realtor.com®. \"Deciding whether to rent or buy often goes beyond a financial advantage though, and likely depends on a consumer's circumstances. Renters often prize flexibility while the biggest reasons homebuyers cite are that they want a place of their own and to be closer to family and friends. The financial scales have tipped monthly costs in favor of renting over buying, but it does not bring the benefit of housing wealth gains over time that owning does and movers should consider their long-term housing plans and personal situation as they make this decision.\"\nThe overall advantage of renting continues to grow in most marketsIn February, the cost of buying a starter home in the top 50 metros was $1,027 (60.1%) higher than renting one; comparatively, the cost to buy was $865 higher than ...