New Report Reveals Home Ownership is More Affordable Than Renting in Most U.S. Regions

Home Ownership vs. Renting: A New Perspective for 2025

Introduction
For many American workers, the dream of homeownership appears more attainable than renting a three-bedroom property. According to ATTOM's 2025 Rental Affordability Report, in more than half of the analyzed county-level markets across the U.S., owning a home is financially less burdensome than renting. However, both options pose significant financial challenges for average workers, often consuming a substantial portion of their wages.

Key Findings
1. Homeownership Affordability: The report reveals that homeownership typically requires a smaller percentage of wages than renting a three-bedroom residence in approximately 60% of the 341 markets analyzed. For most regions, significant ownership costs still constitute 25% to 60% of wages.
2. Price Trends: Despite median home prices rising faster than rental costs in many areas, ownership remains an advantageous option for those able to manage the initial investment, usually exceeding $200,000 for a down payment in several markets.
3. Regional Disparities: The affordability landscape varies greatly by region. The Midwest and South notably show more favorable conditions for ownership, whereas the West leans toward renting being the more feasible choice.

Detailed Analysis of Markets
The analysis encompassed both average rents and home prices derived from ATTOM's data, alongside wage figures from the Bureau of Labor Statistics. Notably, the counties where home prices have risen considerably compared to three-bedroom rental costs include populous regions such as Los Angeles, Cook (Chicago), Maricopa (Phoenix), and San Diego counties. In stark contrast, areas like Harris County (Houston) and Tarrant County (Fort Worth) presented scenarios where rental costs significantly outpaced home prices.

The largest gaps favoring home ownership were reported in areas like Suffolk County, NY, where major ownership expenses consume 59% of local wages compared to a staggering 159% for renting. Such discrepancies underscore the complexities of U.S. housing economics.

East vs. West Housing Trends
Interestingly, the affordability metrics shift dramatically from the East to the West. In the Midwest, an estimated 80% of counties exhibit homeownership as the better financial option. However, the opposite holds true for 80% of western markets, where renting comes out as the more manageable option.

Wage Dynamics Affecting Affordability
Seventy-two percent of counties analyzed are experiencing wage growth that outpaces rental increases, allowing residents a greater chance for financial stability. Major cities like Los Angeles, Chicago, and Houston exemplify areas where rising wages potentially alleviate housing cost pressures, yet severe disparities still exist.

Conclusion: A Challenging Landscape
As Rob Barber, CEO of ATTOM, aptly puts it, finding the right home in today’s market can feel akin to locating a diamond amid a heap of marbles. While homeownership presents a more accessible alternative to renting in many markets, the overall conditions remain precarious, especially with rising mortgage rates potentially impacting future home-buying capacity. As financial burdens from both options continue to weigh heavily on average workers nationwide, the decision to buy or rent necessitates careful consideration and strategic planning.

This report serves as a crucial reminder of the ongoing complexities within the housing market and the critical need for actionable solutions to enhance affordability across all housing options.