Many companies featured on Money advertise with us. Opinions are our own, but compensation and in-depth research determine where and how companies may appear. Learn more about how we make money.
Renting Is Cheaper Than Buying a Home in Most of the U.S. Right Now
Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes.
A new report from real estate data firm ATTOM finds that the average rent for a three-bedroom home is now cheaper than the cost of owning a comparable median-priced home in 95% of the 222 counties analyzed in the study.
That’s the case despite the fact that rent prices rose faster than home prices in about half the country over the past year, ATTOM found.
It’s also a complete reversal from just a year ago — in 2022, ATTOM found that owning a home was more affordable than renting one in 60% of the housing markets it analyzed.
Keep in mind
Real estate dynamics vary widely depending on the local area. While rent and home prices may be rising on a national level, rent or the real estate prices could be falling dramatically in some places.
Recent data from Realtor.com shows that rents have fallen 5.5% in Riverside, California, over the past year, and nearly 5% in Las Vegas and Sacramento.
Data from Zillow shows that home values in Seattle fell 4.8% between November and December alone.
Ads by Money. We may be compensated if you click this ad.Ad
As a home renter, there are insurance policies available for you
To protect yourself and your property against unexpected damages, Lemonade Renters Insurance is the way to go. Interested in a free quote? Click below today.
The question of renting versus buying a house is more complicated that it seems. Each option comes with benefits and drawbacks, and those factors will very likely be determined by the housing market in your local area.
They'll also be determined by your individual circumstances and priorities. Do you plan to live in your home for a long time, or is the flexibility to move more important to you? Are you willing to undertake maintenance and pay property taxes? Do you have extra room in your budget in case your landlord raises the rent?
The answers to these questions could steer you in one direction or another.
Newsletter
Money Moves
Every Saturday, Money dives deep into the world of real estate, offering a fresh take on the latest housing news for homeowners, buyers and daydreamers alike.
Newsletter
Subscribe successful!
You will now receive Money's newsletter at
Reply anytime to let us know how we can improve. Enjoy!
Make sure we land in your inbox, not your spam folder. We just sent you a welcome email. Sometimes email clients send our first email to a spam or promotions folder. If you don't see us in your inbox, check these folders, then drag and drop the welcome email into your inbox.