Realtor.com’s March Rental Report confirms what renters across the U.S. already knew. Renting is more affordable than buying a home in all 50 of the major U.S. metros.
There’s a reason so many home shoppers are also looking at rentals, and comparing notes. Even in smaller markets across the country, the cost of renting is still more manageable than the costs that come with not only buying but keeping a home.
There’s an upside, though. More manageable rental costs make it easier to save money toward a down payment, even if putting down 20% is not realistic within the next 5-10 years.
Those monthly savings can still create a faster path to homeownership and a mortgage payment that doesn’t creep up every year.
In the meantime, though, renters have fewer monthly costs associated with keeping a roof over their heads. As Realtor.com Chief Economist Danielle Hale puts it:
“A person moving into the typical rental spends less each month than someone buying a starter home today. As buying costs have eased in many markets, renters who are intentional about saving have a real opportunity to build toward a down payment faster than they might think.”
Read on for the biggest takeaways from Realtor.com’s report.
The Reality for U.S. Renters
Renters are looking at the trade-offs between continuing to rent and shopping for-sale homes and a good share of them are deciding to renew their leases for the time being.
Doesn’t mean they’re not still dreaming of having a place of their own someday. But there’s a reason rentals don’t have to tick as many boxes as a for-sale home. Living with fewer bedrooms for one year is generally more palatable than sharing bedrooms for five to ten.
The sacrifices made to own a home are generally easier to live with for long periods, or easier for the new homeowner to fix:
- Questionable paint colors
- Older but still functional major appliances
- Zero curb appeal
The same renters who opt for a two-bedroom rental might insist on a three-bedroom when shopping for a home of their own.
Across the country, the math is surprisingly consistent right now. Renting costs less than buying in every major metro, and not by a small margin.
Here’s what the data shows:
- The average renter saves about $920 per month compared to buying
- Buying costs are roughly 55.1% higher than renting on average
- The monthly savings gap ranges from $64 in Pittsburgh up to $2,425 in San Jose
- The national median rent sits at $1,669
- Rents have fallen 1.5% year over year, marking 32 consecutive months of declines
Where Renting Delivers the Biggest Advantage
In certain cities, the gap between renting and buying is wide enough to influence real financial decisions.
Here’s where renting delivers the biggest edge:
- Austin, TX: Rent $1,361, Buy $3,080, Difference $1,719 (126.3%)
- Seattle, WA: Rent $1,862, Buy $3,882, Difference $2,020 (108.5%)
- Phoenix, AZ: Rent $1,435, Buy $2,627, Difference $1,192 (83.1%)
- Los Angeles, CA: Rent $2,760, Buy $4,986, Difference $2,226 (80.7%)
- Dallas, TX: Rent $1,461, Buy $2,639, Difference $1,178 (80.6%)
- San Jose, CA: Rent $3,276, Buy $5,701, Difference $2,425 (74.0%)
Across the top 10 rent-favoring metros, buying a starter home costs an average of $1,628 more per month, or 84.3% higher than renting.
Many of these markets are in the West and South, with strong job growth and higher incomes. Housing costs run high across the board, which widens the spread between renting and buying.
For renters with a long-term plan, those monthly savings can turn into a meaningful down payment over time.
The Gap Is Narrowing and Timing Is Becoming More Important
While the cost of renting is lower than buying, the difference has gotten smaller over the past year.
Here’s what’s going on:
- Nationwide, the rent advantage narrowed by $136 year over year
- Buying costs dropped from $2,751 to $2,589, a decline of $162
- Rent declined from $1,695 to $1,669, a drop of $26
- Mortgage rates fell from 6.65% to 6.18%
- Buying becomes more affordable than renting in about 10 years on average if current trends continue
In some markets, that timeline is much shorter:
- Pittsburgh, PA: $64 gap (4.4%), buying becomes cheaper in 1.5 years
- Memphis, TN: $190 gap (17.2%), about 2 years
- Baltimore, MD: $206 gap (11.4%), about 2 years
- Washington, D.C.: $707 gap (31.0%), about 3 years
- Orlando, FL: $303 gap (18.2%), about 4 years
The reasons behind those timelines are not the same everywhere. In Pittsburgh, rents are climbing, which closes the gap faster. In Memphis and Baltimore, buying costs are coming down more quickly.
This is where things start to get more situational. Some will see value in waiting and stacking savings while renting still offers an edge. Others may look at shorter timelines and start getting ready to buy sooner.
Not Every Market Is Becoming Affordable
In some of the most expensive cities, Realtor.com’s data shows the gap between renting and buying has gotten smaller, but it doesn’t mean buying is suddenly within reach for most people.
Here’s what those markets look like:
- San Jose, CA: Rent $3,276, Buy $5,701, Difference $2,425 (74.0%)
- Boston, MA: Rent $2,918, Buy $4,733, Difference $1,815 (62.2%)
- Los Angeles, CA: Rent $2,760, Buy $4,986, Difference $2,226 (80.7%)
- Washington, D.C.: Rent $2,281, Buy $2,988, Difference $707 (31.0%)
- San Diego, CA: Rent $2,669, Buy $4,296, Difference $1,627 (61.0%)
These are still some of the most expensive housing markets in the country. The gap may be smaller than it was a year ago, but buying costs are still far above renting in every case.
Washington, D.C. stands out a little. The difference has narrowed enough to put it on the radar for buyers who are thinking about timing, especially compared to other coastal markets.
For most of these cities, though, the conversation is less about whether buying is cheaper and more about whether it’s realistic at all. The numbers show clearly enough that renting still carries a significant financial advantage, even as conditions evolve.
Which leads us back to the bigger question of how renters can use that advantage in a practical way.
What This Means for Buyers and Renters Right Now
The numbers still point to a clear cost advantage for renters, and the real value comes from how people act on it. Renting can create room to plan and save with more control.
Here’s where that shows up in practical terms:
- Average monthly savings from renting: $920
- Potential savings range: $64 to $2,425 depending on market
- Buying costs exceed renting by 55.1% on average
- Rent has declined for 32 consecutive months
- Buying costs have dropped faster than rents over the past year
Renters with a plan can put that monthly difference to work. Setting aside even a portion of those savings can build a down payment faster than they might expect, as long as they’re not frequently dipping into it for incidentals.
A larger down payment can also reduce future monthly mortgage costs.
Timing plays a bigger role now. Some markets offer a longer runway for saving. Others show a shorter path toward buying, which can influence when someone starts preparing.
Seasonality also matters. Rents often rise during the spring leasing season. Over a longer horizon, increased multifamily construction is expected to keep yearly rent growth in check.
All of this points to a more active decision-making process. Renting and buying now connect within a single financial plan.
Helping renters in your area understand what they can actually afford long-term not only builds trust; it also makes them more likely to purchase with you and recommend you to other renters.
