Renting continues to be more affordable than buying in 49 of the 50 largest U.S. cities, with just one Midwestern metro bucking the national trend.
The home of the Pittsburgh Steelers and the renowned Carnegie Museums, Pittsburgh stands out as the sole major metro where becoming a first-time homeowner is more economical than paying monthly rent, according to the Realtor.com® June 2025 Rental Report released Thursday.
The most recently available data analyzed by Realtor.com researchers showed that leasing a median home in the Steel City, ranging in size from a studio to a two-bedroom, last month cost $1,473—well below the national median asking rent of $1,711.
Meanwhile, purchasing a starter home in Pittsburgh set the typical new homeowner back $1,362 per month. To arrive at that figure, economists assumed a 9% down payment and used the 30-year fixed mortgage rate in June to calculate a monthly mortgage payment, before tacking on HOA fees, taxes and homeowners insurance.
“Pittsburgh remains one of the most affordable places in the U.S. to live and to buy a home,” says Realtor.com senior economic research analyst Hannah Jones. “It’s the only major market where buying a home is cheaper than renting, and one of just three large metros where a median-income household can afford a median-priced home.”
A monthly savings of $111 may not sound like much, but in 49 of the top 50 metros buying a starter home cost $908 more than renting one in June.
(Realtor.com)
In Pittsburgh, the cost of rent has inched up 0.20% from June 2024, while the median homebuying cost rose 1% annually. The median list price in the Pennsylvania metro last month stood at $255,050, the same as a year ago.
Since 2019, home prices in Pittsburgh have climbed roughly 31%, while rents have surged nearly 40% over the same time period, pushing the cost of renting beyond the cost of buying.
Meanwhile, Memphis, TN, has emerged as the only metro that shifted from favoring buying to favoring renting over the last year. As of last month, leasing a home in “Bluff City” could save tenants $90 a month compared with buying—a striking reversal from 12 months ago when renting cost $34 more.
“A common question potential first-time homebuyers face is whether it makes sense to continue renting or make a home purchase,” says Realtor.com economist Jiayi Xu. “One of the top considerations is the financial costs and benefits of renting versus owning, and one approach is to compare the monthly housing costs of renting a home against the costs of buying a home.”
(Realtor.com)
Although this straightforward comparison does not account for long-term costs and benefits, it helps identify whether a certain market favors renting or buying.
“This is particularly important given today’s landscape, marked by elevated mortgage rates and still-high home prices, posing substantial challenges for would-be homeowners,” notes Xu.
Rents continue to drop year over year
For the 23rd consecutive month, rents have fallen annually across all 50 of the largest U.S. metros. Asking rents dipped by $36, or just over 2%, compared with the same period a year ago.
The median asking rent across the markets analyzed as part of the report clocked in at $1,711, up by $6 from May, but down $48 from its August 2022 peak.
“While this is the fourth consecutive month that rents have trended up—reflecting a typical seasonal uptick as rents tend to rise in the spring and summer, the monthly rent growth has been consistently slower than the same time last year, suggesting a softer rental market,” notes Xu.
Median rent retreated on an annual basis in all property size categories, from studios (-$33) to one-bedrooms (-$42), and two-bedrooms (-$40).
Buying vs. renting in largest metros
In June, the average monthly cost of buying a starter home in the largest 50 cities was $908, or more than 53%, higher than renting. A year ago, the cost of buying was $956, or nearly 55%, higher than renting.
While the overall advantage of renting narrowed by $48 across the top markets compared with June 2024, it was still a staggering $706 higher than six years ago. Specifically, in June 2019, the average monthly cost of buying a starter home in the top 50 metros was only $202, or 14%, higher than renting one.
Over the last 12 months, the rent cost edged down $36, from $1,747 to $1,711. Over the same period, the buy cost for a starter home dropped $84, from $2,703 to $2,619.
(Realtor.com)
Looking closely at the buy-rent gap, the analysis of the June data found that 37 of the 50 largest U.S. metros saw a diminishing rent advantage, led by San Jose, CA. Renting a starter home in the high-priced West Coast city last month saved $2,265 compared with buying, down $349 from the $2,614 savings recorded in June 2024.
Additionally, the savings from renting a starter home shrank $292 in Austin, TX, and $272 in Dallas over the last 12 months.
At $3,414, San Jose had the highest median rent among the top 50 metros in June 2025, followed by Boston, at $3,009, and New York City, at $2,912.
(Realtor.com)