It's Cheaper to Rent Than Buy in Every Big US Metro Area takes note of the metric in the 50 largest metropolitan areas
By Gina Carey,  Newser Staff
Posted Apr 6, 2024 9:30 AM CDT
It's Cheaper to Rent Than Buy in Every Big US Metro Area
A new report shows renting is more cost-effective in all of the biggest US metropolitan areas.   (Getty / Feverpitched)

It's a housing market milestone: Renting now beats buying in all 50 of the biggest metro areas in the US, a new report by says. Quartz helps break down the findings:

  • Last year, residents in 45 of the biggest 50 metro areas fared better through renting, but the five holdouts have since flipped: Memphis, Tennessee; Birmingham, Alabama; Pittsburgh; St. Louis; and Baltimore.
  • The median rent in the metro areas was $1,708 per month in February, down $50 from its peak in August 2022. Rental costs have been dropping steadily year-over-year over the last seven months.
  • Because of rising home prices, it now costs about $1,027 more per month to own a starter home than to rent one in the metro areas, a figure that has grown by $162 in a year.

  • The cost of buying over renting was most stark in the area of Austin, Texas (141.5% difference), and also in Seattle (121.1%) and Phoenix (99%).
  • The reasons behind the fact that buying a home remains less cost-effective are real estate's usual suspects: high mortgage rates and low inventory. Average rates are currently hovering around 7% after slight increases. "The Fed is not in a hurry to start cutting interest rates, as the progress toward 2% inflation has encountered some turbulence," says Bankrate analyst Greg McBride.
(More real estate stories.)

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