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Buying is gaining ground as the rent advantage shrinks in 37 of the 50 largest U.S. metros
AUSTIN, Texas, July 17, 2025 /PRNewswire/ -- The latest Realtor.com® Rental Report for June 2025 shows that the median asking rent for 0–2 bedrooms is down 2.1% year over year to $1,711. And, even after 23 straight months of annual declines, the U.S. median rent in June was only $48 (-2.7%) below its August 2022 peak. Compared to pre-pandemic levels, rents are still up by $268 (18.6%) over June 2019. In a twist that could surprise many renters, the financial gap between renting and buying is actually closing across much of the country.
"Even with rents leveling for nearly two years, high mortgage rates and still-elevated home prices mean renting remains the more budget-friendly option in nearly every major market," said Danielle Hale, chief economist at Realtor.com®. "But the narrowing rent versus buy gap we're seeing in most cities is a signal that the affordability landscape is starting to shift. Renters eyeing homeownership will want to pay close attention in the months ahead."
Rents Are Still More Favorable Nationally, But the Buy vs. Rent Math is Shifting
Across the nation's 50 largest metros, median asking rents are down $36 (-2.1%) from last year and nearly $50 below the 2022 peak. All unit sizes declined: studios fell 2.3%, one bedrooms dropped 2.6%, and two bedrooms dipped 2.1%.
Despite this softening, renting remains more affordable than buying in 49 out of 50 metros. Notably, Austin, Texas, a pandemic hotspot, offers the largest monthly savings for renters compared to buyers, where buying would cost 114.7% more than renting–more than double. However, the average monthly savings for renters now stands at $908, down $48 from $956 a year ago, a sign that buying costs are inching closer.
Top Rent-Favoring Markets, June 2025
Market | Median Rent | Monthly Buy Cost | $ Diff. (Buy-Rent) | % Diff. (Buy-Rent) | Rent Cost YY | Buy Cost YY |
Austin-Round Rock-Georgetown, TX | $1,467 | $3,150 | $1,683 | 114.7 % | -4.7 % | -10.4 % |
Los Angeles-Long Beach-Anaheim, CA | $2,719 | $5,342 | $2,623 | 96.5 % | -3.4 % | -5.2 % |
San Francisco-Oakland-Berkeley, CA | $2,730 | $5,232 | $2,502 | 91.6 % | -2.9 % | -1.4 % |
Seattle-Tacoma-Bellevue, WA | $1,997 | $3,784 | $1,787 | 89.5 % | -2.8 % | -4.8 % |
Phoenix-Mesa-Chandler, AZ | $1,491 | $2,738 | $1,247 | 83.6 % | -4.7 % | -4.7 % |
Sacramento-Roseville-Folsom, CA | $1,877 | $3,395 | $1,518 | 80.9 % | -2.9 % | -3.7 % |
New York-Newark-Jersey City, NY-NJ-PA | $2,912 | $5,140 | $2,228 | 76.5 % | 0.8 % | -2.7 % |
Nashville-Davidson--Murfreesboro--Franklin, TN | $1,534 | $2,700 | $1,166 | 76.0 % | -2.8 % | -7.7 % |
San Diego-Chula Vista-Carlsbad, CA | $2,674 | $4,676 | $2,002 | 74.9 % | -5.9 % | -6.5 % |
Boston-Cambridge-Newton, MA-NH | $3,009 | $5,213 | $2,204 | 73.2 % | -1.0 % | -2.2 % |
Local Markets Tell Their Own Story
Pittsburgh remains the only major metro where buying a starter home still costs less than renting, but the tides are shifting. Interestingly, renters in the notoriously expensive California metro of San Jose are saving $2,614 per month renting over buying last year, but that's shrunk by $349 in the same time frame. And, while Austin, Texas stands out as the No. 1 place where renting is favored over buying, it's one of the top two metros where renting is experiencing a diminishing advantage over buying as compared to June 2024.
Top Metros With Diminishing Advantage in Renting, June 2025
Market | Median Rent | Monthly Buy Cost | $ Diff. (Buy-Rent) | % Diff. (Buy-Rent) | $Diff. (Buy-Rent): June 2025 vs. 2024 |
San Jose-Sunnyvale-Santa Clara, CA | $3,414 | $5,679 | $2,265 | 66.3 % | -$349 |
Austin-Round Rock-Georgetown, TX | $1,467 | $3,150 | $1,683 | 114.7 % | -$292 |
Dallas-Fort Worth-Arlington, TX | $1,461 | $2,455 | $994 | 68.0 % | -$272 |
Seattle-Tacoma-Bellevue, WA | $1,997 | $3,784 | $1,787 | 89.5 % | -$210 |
Columbus, OH | $1,218 | $1,959 | $741 | 60.8 % | -$201 |
Other metros, like Birmingham, Ala., saw the most significant increase in rental savings over the past 12 months. And notably, Memphis, Tenn., flipped from favoring buying to favoring renting over the past year. It even ranks third on the list of metros with increasing advantage in renting. This underscores just how quickly local markets can turn.
Top Metros With Increasing Advantage in Renting, June 2025
Market | Median Rent | Monthly Buy Cost | $ Diff. (Buy-Rent) | % Diff. (Buy-Rent), 2025 | $Diff. (Buy-Rent): June 2025 vs. 2024 |
Birmingham-Hoover, AL | $1,205 | $1,399 | $194 | 16.1 % | $189 |
Milwaukee-Waukesha, WI | $1,673 | $2,515 | $842 | 50.3 % | $136 |
Memphis, TN-MS-AR | $1,180 | $1,270 | $90 | 7.6 % | $124 |
Oklahoma City, OK | $980 | $1,504 | $524 | 53.5 % | $118 |
Baltimore-Columbia-Towson, MD | $1,816 | $1,926 | $110 | 6.1 % | $65 |
Rental Data: 50 Largest Metropolitan Areas, June 2025 (alphabetical order)
Market | Rent Cost (0-2 Bedrooms) | Buy Cost (0-2 Bedrooms) | $ Difference (Buy-Rent) | % Difference (Buy-Rent) | Rent Cost: YY | Buy Cost: YY | Rent Cost: 6 Year Changes |
Atlanta-Sandy Springs-Alpharetta, GA | $1,579 | $2,120 | $541 | 34.3 % | -4.00 % | -4.9 % | 11.0 % |
Austin-Round Rock-Georgetown, TX | $1,467 | $3,150 | $1,683 | 114.7 % | -4.70 % | -10.4 % | 18.1 % |
Baltimore-Columbia-Towson, MD | $1,816 | $1,926 | $110 | 6.1 % | 0.00 % | 3.5 % | 15.7 % |
Birmingham-Hoover, AL | $1,205 | $1,399 | $194 | 16.1 % | -3.40 % | 11.7 % | 16.9 % |
Boston-Cambridge-Newton, MA-NH | $3,009 | $5,213 | $2,204 | 73.2 % | -1.00 % | -2.2 % | 17.0 % |
Buffalo-Cheektowaga, NY | NA | NA | NA | NA | NA | NA | NA |
Charlotte-Concord-Gastonia, NC-SC | $1,527 | $2,130 | $603 | 39.5 % | -1.20 % | -0.2 % | 18.1 % |
Chicago-Naperville-Elgin, IL-IN-WI | $1,786 | $2,624 | $838 | 46.9 % | -2.20 % | -4.0 % | 14.3 % |
Cincinnati, OH-KY-IN | $1,305 | $1,868 | $563 | 43.1 % | -4.30 % | -0.5 % | 17.5 % |
Cleveland-Elyria, OH | $1,220 | $1,457 | $237 | 19.4 % | -2.30 % | -9.4 % | 24.0 % |
Columbus, OH | $1,218 | $1,959 | $741 | 60.8 % | 0.30 % | -9.1 % | 22.5 % |
Dallas-Fort Worth-Arlington, TX | $1,461 | $2,455 | $994 | 68.0 % | -2.10 % | -11.0 % | 15.9 % |
Denver-Aurora-Lakewood, CO | $1,786 | $2,889 | $1,103 | 61.8 % | -7.70 % | -5.7 % | 7.1 % |
Detroit-Warren-Dearborn, MI | $1,304 | $1,714 | $410 | 31.4 % | -0.10 % | -1.4 % | 13.1 % |
Hartford-East Hartford-Middletown, CT | NA | NA | NA | NA | NA | NA | NA |
Houston-The Woodlands-Sugar Land, TX | $1,355 | $1,972 | $617 | 45.5 % | -2.00 % | -7.8 % | 9.7 % |
Indianapolis-Carmel-Anderson, IN | $1,298 | $1,635 | $337 | 26.0 % | -3.40 % | -5.9 % | 30.7 % |
Jacksonville, FL | $1,503 | $2,075 | $572 | 38.1 % | -3.90 % | -6.6 % | 27.2 % |
Kansas City, MO-KS | $1,406 | $1,413 | $7 | 0.5 % | 3.70 % | -0.4 % | 29.7 % |
Las Vegas-Henderson-Paradise, NV | $1,472 | $2,147 | $675 | 45.9 % | -3.00 % | -3.9 % | 23.1 % |
Los Angeles-Long Beach-Anaheim, CA | $2,719 | $5,342 | $2,623 | 96.5 % | -3.40 % | -5.2 % | 12.2 % |
Louisville/Jefferson County, KY-IN | $1,253 | $1,509 | $256 | 20.4 % | -3.80 % | -4.2 % | 20.8 % |
Memphis, TN-MS-AR | $1,180 | $1,270 | $90 | 7.6 % | -3.40 % | 7.0 % | 15.8 % |
Miami-Fort Lauderdale-Pompano Beach, FL | $2,352 | $3,080 | $728 | 31.0 % | -2.80 % | -3.0 % | 36.1 % |
Milwaukee-Waukesha, WI | $1,673 | $2,515 | $842 | 50.3 % | -0.90 % | 5.0 % | 21.0 % |
Minneapolis-St. Paul-Bloomington, MN-WI | $1,509 | $2,300 | $791 | 52.4 % | -2.20 % | -3.5 % | 3.7 % |
Nashville-Davidson--Murfreesboro--Franklin, TN | $1,534 | $2,700 | $1,166 | 76.0 % | -2.80 % | -7.7 % | 23.0 % |
New Orleans-Metairie, LA | NA | NA | NA | NA | NA | NA | NA |
New York-Newark-Jersey City, NY-NJ-PA | $2,912 | $5,140 | $2,228 | 76.5 % | 0.80 % | -2.7 % | 27.9 % |
Oklahoma City, OK | $980 | $1,504 | $524 | 53.5 % | -2.00 % | 7.0 % | 8.9 % |
Orlando-Kissimmee-Sanford, FL | $1,693 | $1,885 | $192 | 11.3 % | -1.50 % | -4.7 % | 22.2 % |
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $1,770 | $2,395 | $625 | 35.3 % | -2.40 % | -2.7 % | 10.3 % |
Phoenix-Mesa-Chandler, AZ | $1,491 | $2,738 | $1,247 | 83.6 % | -4.70 % | -4.7 % | 24.3 % |
Pittsburgh, PA | $1,473 | $1,362 | -$111 | -7.5 % | 0.20 % | 1.0 % | 39.9 % |
Portland-Vancouver-Hillsboro, OR-WA | $1,684 | $2,627 | $943 | 56.0 % | -4.00 % | -4.0 % | 16.2 % |
Providence-Warwick, RI-MA | NA | NA | NA | NA | NA | NA | NA |
Raleigh-Cary, NC | $1,494 | $2,333 | $839 | 56.2 % | -4.00 % | -7.9 % | 24.0 % |
Richmond, VA | $1,521 | $2,342 | $821 | 54.0 % | -0.50 % | -2.9 % | 25.8 % |
Riverside-San Bernardino-Ontario, CA | $2,046 | $3,115 | $1,069 | 52.2 % | -4.10 % | -0.8 % | 15.9 % |
Rochester, NY | NA | NA | NA | NA | NA | NA | NA |
Sacramento-Roseville-Folsom, CA | $1,877 | $3,395 | $1,518 | 80.9 % | -2.90 % | -3.7 % | 27.5 % |
San Antonio-New Braunfels, TX | $1,243 | $1,868 | $625 | 50.3 % | -2.30 % | -4.8 % | 22.0 % |
San Diego-Chula Vista-Carlsbad, CA | $2,674 | $4,676 | $2,002 | 74.9 % | -5.90 % | -4.3 % | 14.1 % |
San Francisco-Oakland-Berkeley, CA | $2,730 | $5,232 | $2,502 | 91.6 % | -2.90 % | -2.2 % | -4.3 % |
San Jose-Sunnyvale-Santa Clara, CA | $3,414 | $5,679 | $2,265 | 66.3 % | 0.90 % | -5.3 % | 8.1 % |
Seattle-Tacoma-Bellevue, WA | $1,997 | $3,784 | $1,787 | 89.5 % | -2.80 % | -6.6 % | 6.8 % |
St. Louis, MO-IL | $1,343 | $1,369 | $26 | 1.9 % | -0.70 % | 1.2 % | 23.4 % |
Tampa-St. Petersburg-Clearwater, FL | $1,743 | $2,308 | $565 | 32.4 % | 0.20 % | -2.7 % | 39.7 % |
Virginia Beach-Norfolk-Newport News, VA-NC | $1,505 | $1,890 | $385 | 25.6 % | -2.10 % | -3.2 % | 20.9 % |
Washington-Arlington-Alexandria, DC-VA-MD-WV | $2,330 | $2,976 | $646 | 27.7 % | 1.56 % | -3.3 % | 17.1 % |
Methodology
Rental data as of June 2025 for studio, 1-bedroom, or 2-bedroom units advertised as for rent on Realtor.com. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching to March 2019.
About Realtor.com®
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media contact: Asees Singh, [email protected]
SOURCE Realtor.com
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