#United States #Austin #Housing Market #Rental Report #Realtor

As Renting Cost Advantage Shrinks, Buying Homes Gains Appeal in Major U.S. Cities

Renting vs. Buying: The Shifting Landscape of Housing Costs

As of June 2025, the latest Realtor.com® Rental Report indicates that the U.S. rental market is undergoing a notable transformation. The median asking rent for 0–2 bedroom units has experienced a year-over-year decline of 2.1%, bringing it down to $1,711. This is an interesting turn of events since the rental landscape has been on a downward trend for 23 consecutive months. Despite this, rents are still significantly higher compared to pre-pandemic levels; they are up by $268, or 18.6%, when compared to June 2019.

In a surprising twist, the financial divide between renting and buying a home is diminishing across numerous metropolitan areas. Danielle Hale, Chief Economist at Realtor.com®, notes, “While renting remains the more budget-friendly option in most major markets, the narrowing gap between the costs of renting and buying may suggest an impending shift in the affordability landscape. Renters aspiring to own a home should keep a watchful eye on these changes.”

The State of Rental Prices

To understand the renting versus buying equation, we examine the median rent prices across the nation's largest metropolitan areas. The average decrease of $36 from last year means that median asking rents are now almost $50 lower than the peak observed in 2022. Here’s how various unit sizes are faring:

- Studios: Down 2.3%
- One-bedroom units: Down 2.6%
- Two-bedroom units: Down 2.1%

Despite these declines, analysis shows that renting continues to be more affordable than buying in 49 out of 50 metros. Yet, the average monthly savings for renters has decreased to $908, a drop of $48 from the previous year.

One standout metro is Austin, Texas, which remains a key area for renters. The increase in buying costs there means that purchasing a home would cost 114.7% more than renting, showcasing a stark difference in affordability.

The Top Markets for Renting

Here is a look at the top markets where renting is still favorable:

Market	Median Rent	Monthly Buy Cost	Difference	Percentage Difference	Rent Cost YoY
--	---	----	--	----	------
Austin-Round Rock-Georgetown, TX	$1,467	$3,150	$1,683	114.7%	-4.7%
Los Angeles-Long Beach-Anaheim, CA	$2,719	$5,342	$2,623	96.5%	-3.4%
San Francisco-Oakland-Berkeley, CA	$2,730	$5,232	$2,502	91.6%	-2.9%
Seattle-Tacoma-Bellevue, WA	$1,997	$3,784	$1,787	89.5%	-2.8%
Phoenix-Mesa-Chandler, AZ	$1,491	$2,738	$1,247	83.6%	-4.7%

Shifts in the Housing Market

While renting remains advantageous in many areas, some locations are showing signs of shifting priorities. For instance, in Pittsburgh, buying a starter home is now cheaper than renting – a trend that could have broader implications. Conversely, San Jose, California, once considered a rent haven, has seen its renter savings shrink significantly by $349 over the past year.

The following locations have noted diminishing advantages for renters:

Market	Median Rent	Monthly Buy Cost	Difference	Percentage Difference
--	---	----	--	------
San Jose-Sunnyvale-Santa Clara, CA	$3,414	$5,679	$2,265	66.3%
Austin-Round Rock-Georgetown, TX	$1,467	$3,150	$1,683	114.7%
Dallas-Fort Worth-Arlington, TX	$1,461	$2,455	$994	68.0%

On the flip side, areas like Birmingham, Alabama, are experiencing an increase in renting advantages, showing how swiftly local housing markets can fluctuate.

Conclusion

In summary, while renting still holds an advantage in most major U.S. metropolitan areas, the gap between renting and buying is narrowing. Prospective renters looking to buy may need to adapt swiftly to changing market dynamics. With monthly savings for renters decreasing and buying costs edging closer to rental prices, the advice for renters remains clear: stay informed about these evolving trends as they navigate the housing market.