Buying a Starter Home Is Cheaper Than Renting in Nearly Half the Metro Areas in the Us

  • Heather Smith
  • 09/16/21

Renting is often looked at as a more affordable alternative to homeownership, but in many areas of the US, that’s actually not the case.

According to recent data from realtor.com, rents are rising fast and hitting new highs in metro areas across the country. In July, the median rental price in the US was $1607—a 9.8 percent increase from July 2020.

And not only are rental prices increasing, but they’re increasing to the point that, in many areas, renting is now more expensive than owning. With a median rental price of $1607, rent is now 15.5 percent more expensive than mortgage payments for a starter home in 24 of the 50 largest metro areas.

The Takeaway:

So, what does this mean for you? If you’ve been putting off buying your first home because you’ve thought renting is cheaper, it may be time to reexamine that logic. Depending on where you live, there’s a good chance that buying a home may actually be more affordable than your current rental.

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For most families, choosing a new home is the biggest financial decision they will ever make. There are many complicated decisions involved in choosing a home. As one of the top real estate professionals in the local market, I'll negotiate the best prices and terms for you and answer all of your questions as they arise.

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