New Realtor.com Report: Renting is More Affordable than Buying Across All 50 Major U.S. Metros -- and the Savings Gap Could Be A Path to Homeownership

The monthly savings from renting over buying shrinks by $136 year-over-year, even as national median rent hits its 32nd consecutive month of decline

AUSTIN, Texas, April 16, 2026 /PRNewswire/ -- Homeownership remains the goal for many Americans, and right now, the rental market is quietly making that dream more attainable. According to the Realtor.com^® March Rental Report, renting a starter home remains the more affordable option across all 50 of the largest U.S. metros, with an average monthly savings of $920 compared to buying. For renters with homeownership in their sights, that gap is not just a reflection of today's market, it's an opportunity to build toward tomorrow's purchase.

Those monthly savings can be put directly toward a down payment, creating a faster path to ownership and a lower mortgage payment when the time comes. The strategy is particularly compelling in rent-favoring markets where the percentage gap is widest. In Austin, Texas, where monthly buying costs run $1,719 (126.3%) higher than renting, the savings potential is substantial.

The national median asking rent in March 2026 stood at $1,669, down $25, or 1.5%, year-over-year, marking the 32nd consecutive month of annual declines for 0–2 bedroom properties. While still $249 (17.5%) above pre-pandemic levels, the median sits $95 (-5.4%) below its August 2022 peak.

"A person moving into the typical rental spends less each month than someone buying a starter home today," said Danielle Hale, chief economist at Realtor.com^®. "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."

The decision to rent or buy is deeply personal, and every family will need to weigh their own circumstances, including closing costs, equity built over time, and the opportunity cost of a down payment. Households can explore the longer-term trade-offs with the Realtor.com^® Rent vs. Buy Calculator. And timing matters: Realtor.com^®'s recent Generational Wealth Report found that households that purchase their first home by age 30 see a 22.5% higher net worth by midlife compared to those who wait until their 40s.

Where the Savings Opportunity Is Greatest

In markets where the gap between renting and buying is widest, renters have the most to gain by redirecting monthly savings toward a down payment. The top markets where renting is most favorable:

Where Buying Could Become the Better Deal and When

The overall renting advantage has shrunk by $136 over the past year, as lower mortgage rates and home prices are making buying increasingly competitive. If current trends hold, with renting costs easing 1.5% annually and buying costs declining 5.9%, buying would become the more affordable option in roughly 10 years on average across the top 50 metros. But in a handful of markets, that crossover could come much sooner:

Metros Where Buying is Within Reach if Today's Trend Hold

"What's striking is that the crossover in these markets is being driven by two different forces," said Jiayi Xu, economist at Realtor.com^®. "In Pittsburgh, it's rising rents that are closing the gap. In markets like Memphis and Baltimore, it's buy costs cooling faster than rents. The path looks different, but the destination is the same, and it's worth watching as we move through 2026."

On the other end of the spectrum, the renting advantage is growing in three Midwest markets. Cleveland, Ohio now sees renting save $584 per month over buying, up $110 from a year ago, followed by Milwaukee, Wis. (+$65) and Detroit, Mich. (+$14).

A Shrinking Gap Is Not the Same as an Affordable Market

Not all markets where the renting advantage is narrowing tell the same story. In high-cost coastal cities, the gap is closing, but buying remains out of reach for most renters. In San Jose, Calif., buying a starter home still costs 74.0% more per month than renting. In Los Angeles, that figure is 80.7%, and in Boston, 62.2%.

The narrowing in these markets is real. Renting saved $420 per month less in San Jose compared to a year ago, $412 less in Boston, and $396 less in Los Angeles. But those are shifts at the margins of an already unaffordable market, not generally a signal that buying has become viable. The one exception here is the Washington-et-al, D.C. metro area where the sizable drop in the rental advantage was sufficient to place the market among the top 5 areas where buying could be within reach in the near future.

Top Metros With Diminishing Advantage in Renting

All Unit Sizes Saw Continued Declines

Median rent declined across every unit type in March 2026:

National Rents by Unit Size

"We expect rents to tick up modestly as we head into the spring leasing season, which is typical," said Xu. "But given the surge in multifamily construction over the past several years, we anticipate continued year-over-year declines. Rents are unlikely to reach a new peak by the end of 2026."

Appendix

Methodology

Rental data as of March 2026 for studio, 1-bedroom, or 2-bedroom units advertised 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.

With the release of its March rent report, Realtor.com^® incorporated a new and improved methodology for capturing and reporting more comprehensive rental listing trends and metrics. The new methodology is expected to yield a cleaner, more representative and more consistent measurement of rental listings and trends at both the national and local level. The methodology has been adjusted to better represent the true cost of primary housing for renters. Most areas across the country will see minor changes with a smaller handful of areas seeing larger updates. As a result of these changes, the rental data released since April 2026 will not be directly comparable with previous releases and Realtor.com^® economics blog posts. However, future data releases, including historical data, will consistently apply the new methodology.

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: Emily Do, press@realtor.com

SOURCE Realtor.com