The 2 Cities Where It’s Cheaper To Buy Than Rent—but Only If You Act Soon

by Snejana Farberov

In most cases, it’s cheaper to rent than buy—but, in good news for homebuyers in two Rust Belt Cities, the exact opposite is true.

It turns out, if you live in Pittsburgh or Detroit, it’s actually cheaper to buy a home than it is to rent, according to the Realtor.com® January 2025 Rental Report.

“These two markets are, unsurprisingly, the two with the lowest median listing prices of our top 50 metros,” says Realtor.com senior economist Joel Berner.

The median home list price in Pittsburgh was $229,700 in January, with a monthly mortgage payment of just $1,199. Meanwhile, the median rent in the Pennsylvania metro during the same period was $1,413.

But, would-be buyers who are considering settling in Pittsburgh should act fast, because this trend is not expected to last long in Steel City, according to the report.

This Tudor-style home in Pittsburgh, PA, is listed for sale at $265,000.
(Realtor.com)

Similarly, in Detroit, where the typical home list price was $239,950, the monthly mortgage payment amounted to $1,252, compared with the median rent of $1,313.

Berner says that with the share of income used for rent going up in Detroit, and inching down by a mere 0.3% in Pittsburgh, “buying a home has actually become more economical than renting one.”

This dynamic doesn’t appear to have longevity. According to the data analysis, indicators show that renting there is becoming more affordable, while buying is becoming more expensive.

“If this trend continues, Pittsburgh will become yet another metro where renting is more affordable than buying,” says Berner.

This three-bedroom home in Detroit’s Boston Edison District is listed for sale at $280,000.
(Realtor.com)

Renting vs. buying in U.S. metros

For the 18th straight month, rental prices have fallen across all 50 of the major metro areas of the U.S. The median asking rent shed 0.2% from the same period last year, but increased from December, reaching $1,703.

At the same time, the median home list price in January was $400,500, with a monthly mortgage payment of $2,123—nearly 25% more than the median rent price—assuming a 20% down payment and a 6.96% interest. That amount does not factor in property taxes and insurance.

Across the U.S., rent growth has tapered off since its post-pandemic surge, but only marginally. While January’s median rent price was lower compared with the same period a year ago and two years ago, it still outstripped January 2020 by $257.

“Even though rents are falling, renters are still feeling the pinch from the rapid rent growth of 2021 and 2022,” Berner says. “The situation is similar in the for-sale market, where the median listing price has started to fall but remains well above its pre-pandemic benchmark.”

Most and least affordable cities to buy or rent

A home is considered affordable if its renter or owner spends less than 30% of their income on it each month. Households that spend more than that are deemed cost-burdened.

The difference between the share of income spent on rent versus a mortgage could be drastic in a given city.

For example, in Oklahoma City, OK, a typical renter in January spent the smallest share of their income on rent of all 50 metros, at just 17.1%, compared with 27.4% spent on buying a home there.

In Pittsburgh, on the other hand, the median share of income spent on rent was 23.5%, while the share spent on buying a house was 19.7%.

A similar trend was observed in Detroit, where the portion of income spent on buying a home was 1% lower than renting one.

In some markets—namely Miami, New York City, Los Angeles, Boston, and San Diego—neither renting nor owning is “affordable.”

Of all the major metros, Miami and New York City have earned the dubious distinction of having the highest share of income spent on rent, at 37.6% each.

Meanwhile, Los Angeles had by far the highest share of income spent on homebuying, at a staggering 74.7%, with San Diego a distant second, at 57.7%.

What do the numbers mean

A year ago, there were six of the 50 metros where buying a home was less expensive than renting one. Now, that number is down to two, signaling that the market as a whole is moving in a more renter-friendly direction.

Some of the factors behind this trend include the consistent decline of rental prices and the persistence of high mortgage rates over the past year, according to Berner.

One thing to keep in mind is that metros where incomes have grown since last year at a faster pace than rent or home list prices will show improvements in affordability even without declines in median rent or median list price.

At the same time, homebuying affordability could take a hit simply because mortgage rates have shot up since January 2024, even if list prices are going down and income is surging.

5 of the most expensive rental markets

San Jose, CA

Median monthly rent: $3,287
Median monthly mortgage (excluding taxes and insurance): $6,618
Buying a home costs this much more than renting one: 101.3%

New York, NY

Median monthly rent: $2,973
Median monthly mortgage (excluding taxes and insurance): $3,915
Buying a home costs this much more than renting one: 31.6%

East 102nd St NYC — This one-bedroom apartment on East 102nd Street in New York City is available for rent for $3,000 a month.
(Realtor.com)

Boston, MA

Median monthly rent: $2,925
Median monthly mortgage (excluding taxes and insurance): $4,173
Buying a home costs this much more than renting one: 42.6%

Los Angeles, CA

Median monthly rent: $2,736
Median monthly mortgage (excluding taxes and insurance): $5,687
Buying a home costs this much more than renting one: 107.8%