Realtor.com® July Rent Report: Renting a Starter Home Costs Less Than Buying in All 50 Largest U.S. Metros, but the Gap Is Narrowing

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Realtor.com (NASDAQ: NWS – via Realtor.com July 2026 Rent Report) reports that renting a starter home remains cheaper than buying in all 50 largest U.S. metros, though the cost gap is narrowing. In July, the national median asking rent for 0–2 bedroom units was $1,695, down 1.4% year over year and marking the 36th consecutive month of annual declines. Rents are still 15.3% above July 2019 but 3.9% below the August 2022 peak. The average monthly cost to buy a starter home was $2,553, or $858 (50.6%) more than renting, versus a $923 gap a year earlier. Median starter-home listing prices fell 2.9% year over year, outpacing rent declines. Seven markets—Oklahoma City, Orlando, Seattle, Miami, Tampa, Las Vegas and Nashville—show improving buying conditions, with Orlando’s buy-versus-rent difference down to $19 per month.

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The July 2026 report’s buy-versus-rent figure is a modeled monthly estimate: it assumes a 10% down payment and a 30-year fixed mortgage, then adds average metro HOA fees, taxes and homeowners insurance.

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Median asking rent in the largest 50 metros falls for the 36th consecutive month; falling starter-home prices and wage gains improve buying conditions in seven markets
 

AUSTIN, Texas, Aug. 17, 2026 /PRNewswire/ -- Renting a starter home remains less expensive than buying in all 50 of the nation's largest metropolitan areas, according to the Realtor.com^® July 2026 Rent Report. However, home price, rent trends, and wage growth in seven markets suggest a buying opportunity may be near, even as the Realtor.com^® Market Clock^® is signaling buyer friendly or buyer-leaning conditions in these areas. As the advantages of renting have narrowed over the past year as starter-home costs declined more quickly than rents, creating a more favorable backdrop for prospective buyers in select markets.

The national median asking rent for 0-2 bedroom properties across the 50 largest metros was $1,695 in July, down $24, or 1.4%, from a year earlier. The decline marks the 36th consecutive month of annual rent decreases. Although median rent across all unit sizes remains $225, or 15.3%, above July 2019 levels, it is $69, or 3.9%, below its August 2022 peak.

"Renters have gained meaningful financial breathing room over the last three years, and that advantage is still real in many major metros," said Jiayi Xu, senior economist at Realtor.com^®. "But the savings gap is no longer moving in just one direction. Starter-home prices are falling faster than rents in many places, giving households who are ready to buy a stronger reason to stay engaged with the market."

Rent declines extend across every unit size
In July 2026, the median asking rent for two-bedroom units dropped 1.4% year over year, marking the 38th consecutive month of annual declines. At $1,893, the national median for two-bedroom units now sits $75 (-3.8%) below its July 2022 peak. Despite this broad-based softening, rents remain above pre-pandemic levels. Two-bedroom rents are 17.5% higher than in July 2019, one-bedroom rents are 14.6% higher and studio rents are 13.7% higher.

Unit Size	Median Rent	Rent YoY	Consecutive Months of Decline	Total Decline from Peak	Rent Change - 7 Years
Overall	$1,695	-1.4 %	36	-3.9 %	15.3 %
Studio	$1,435	-1.4 %	35	-3.4 %	13.7 %
1-Bedroom	$1,581	-1.3 %	38	-4.8 %	14.6 %
2-Bedroom	$1,893	-1.4 %	38	-3.8 %	17.5 %

Renting still delivers significant monthly savings
Across the 50 largest metros, the monthly cost of buying a starter home was $2,553 in July. However, home price, rent trends, and wage growth in a few key markets suggest a buying opportunity may be nearer. The national rent advantage narrowed by $65 from a year ago, when buying cost $923 more per month than renting vs $858 today. Over that period, median rent declined $24, while starter-home buying costs fell $89, reflecting a $57 drop from lower typical listing prices and a $33 decrease from a lower mortgage rate.

To determine the monthly cost of buying a home, we find the median list price of 0-2 bedroom home listings (i.e., starter homes). As first-time homebuyers plan lower down payments, we assume a 10% down payment and use the 30-year fixed mortgage rate during the month to calculate a monthly mortgage payment. We also include the HOA fees, taxes, and homeowners insurance averaged at the metro levels as part of the costs. We then compare this buy cost with the median rent in each metro and focus on the difference between the monthly expenses for each.

The biggest rent-versus-buy gaps were mostly concentrated in markets that have seen sustained rent relief over the past few years. Austin, Texas led the nation: renting a starter home costs $1,378 per month compared with $3,295 to buy, a $1,917 or 139.1% monthly difference. Seattle renters saved $1,961 or 103.8% per month, and Los Angeles renters saved $2,049 or 73.5% per month.

The overall advantage of renting shrinks compared with a year ago
In July 2026, the average monthly cost of buying a starter home in the largest 50 metros was $858 (50.6%) higher than renting, whereas the cost of buying was $923 (53.7%) higher than renting in July 2025. In other words, the overall advantage of renting narrowed by $65 across the largest 50 metros compared with a year ago.

While the rent cost declined by $24, from $1,719 to $1,695, over the past 12 months, the buy cost for a starter home dropped by $89, from $2,642 to $2,553—including a $57 decline from changes in typical listing prices and a $33 decrease from a lower mortgage rate, because the 30-year fixed mortgage rate dropped from 6.72% in July 2025 to 6.54% in the last month. 

Top Rent-Favoring Markets, July 2026

Market	Median Asking Rent	Median Buy Cost	$ Difference (Buy-Rent)	% Difference (Buy- Rent)/Rent
Austin-Round Rock-San Marcos, TX	$1,378	$3,295	$1,917	139.1 %
Seattle-Tacoma-Bellevue, WA	$1,890	$3,851	$1,961	103.8 %
Dallas-Fort Worth-Arlington, TX	$1,463	$2,657	$1,194	81.6 %
Columbus, OH	$1,181	$2,111	$930	78.7 %
Nashville-Davidson--Murfreesboro-- Franklin, TN	$1,488	$2,646	$1,158	77.8 %
Los Angeles-Long Beach-Anaheim, CA	$2,787	$4,836	$2,049	73.5 %
San Antonio-New Braunfels, TX	$1,156	$1,982	$826	71.5 %
Oklahoma City, OK	$915	$1,543	$628	68.6 %
Portland-Vancouver-Hillsboro, OR-WA	$1,606	$2,697	$1,091	67.9 %
San Diego-Chula Vista-Carlsbad, CA	$2,677	$4,365	$1,688	63.1 %

Buying conditions are improving in seven markets
Renting may be cheaper today, but the balance is shifting in markets where starter-home listing prices are declining faster than rents and average weekly earnings are growing at or above the 3.8% national rate. Across the 50 largest metros, the median listing price of a starter home fell 2.9% year over year in July, compared with a 1.4% decline in rents.

Seven markets met both measures: Oklahoma City; Orlando, Fla.; Seattle; Miami; Tampa, Fla.; Las Vegas; and Nashville, Tenn. These markets offer different degrees of rent savings today, but each is seeing conditions move more favorably for prospective buyers. Orlando is closest to a monthly crossover, where buying costs only $19 more per month than renting. Meanwhile, Oklahoma City, Seattle and Nashville pair some of the largest monthly savings from renting with improving purchase conditions.

"Improving buying conditions do not make the decision to purchase automatic, especially when renting is still cheaper," Xu said. "These conditions do give renters more flexibility and confidence when making that decision. Households can continue to save while renting, or, if they are ready to buy, pursue a market where home prices, rents and earnings are increasingly working in their favor."

Markets Where Buying Conditions Are Improving

Market	Median Asking Rent	Median Asking rent, YOY	Median listing price, YOY	Average weekly earning, YOY (June 2026)
Oklahoma City, OK	$915	-1.5 %	-9.0 %	4.1 %
Orlando-Kissimmee- Sanford, FL	$1,682	-1.6 %	-7.7 %	3.8 %
Seattle-Tacoma- Bellevue, WA	$1,890	-1.0 %	-5.9 %	4.0 %
Miami-Fort Lauderdale-West Palm Beach, FL	$2,279	-1.3 %	-5.0 %	5.7 %
Tampa-St. Petersburg- Clearwater, FL	$1,635	-4.9 %	-7.1 %	4.8 %
Las Vegas- Henderson-North Las Vegas, NV	$1,457	-1.8 %	-3.4 %	4.4 %
Nashville-Davidson-- Murfreesboro-- Franklin, TN	$1,488	-3.9 %	-5.4 %	3.9 %

Rental Data – 50 Largest Metropolitan Areas – July 2026

Market	Rent Cost	YOY Rent Cost	Buy Cost	YOY Buy Cost	$ Difference (Buy- Rent)	% Difference (Buy- Rent)/ Rent,	YOY,  Median Listing Price (starter home)
Atlanta-Sandy Springs- Roswell, GA	$1,566	-2.2 %	$2,233	-5.6 %	$667	42.6 %	-5.3 %
Austin-Round Rock-San Marcos, TX	$1,378	-3.2 %	$3,295	-6.7 %	$1,917	139.1 %	-6.1 %
Baltimore-Columbia-Towson, MD	$1,849	0.8 %	$2,016	-9.2 %	$167	9.0 %	-10.3 %
Birmingham, AL	$1,211	-0.5 %	$1,279	-6.6 %	$68	5.6 %	-5.8 %
Boston-Cambridge-Newton, MA-NH	$2,939	-3.4 %	$4,669	-5.1 %	$1,730	58.9 %	-4.1 %
Buffalo-Cheektowaga, NY	NA	NA	NA	NA	NA	NA	NA
Charlotte-Concord-Gastonia, NC-SC	$1,491	-2.3 %	$2,153	-2.9 %	$662	44.4 %	-1.8 %
Chicago-Naperville-Elgin, IL- IN	$1,838	1.3 %	$2,658	0.9 %	$820	44.6 %	2.3 %
Cincinnati, OH-KY-IN	$1,327	-0.7 %	$1,962	4.0 %	$635	47.9 %	6.4 %
Cleveland, OH	$1,202	-1.6 %	$1,567	3.9 %	$365	30.4 %	6.6 %
Columbus, OH	$1,181	-1.7 %	$2,111	0.1 %	$930	78.7 %	1.7 %
Dallas-Fort Worth-Arlington, TX	$1,463	-2.3 %	$2,657	0.3 %	$1,194	81.6 %	1.5 %
Denver-Aurora-Centennial, CO	$1,772	-3.0 %	$2,861	-6.9 %	$1,089	61.5 %	-6.5 %
Detroit-Warren-Dearborn, MI	$1,259	-1.3 %	$1,686	-2.9 %	$427	33.9 %	-2.3 %
Hartford-West Hartford-East Hartford, CT	NA	NA	NA	NA	NA	NA	NA
Houston-Pasadena-The Woodlands, TX	$1,384	-2.4 %	$2,244	-4.8 %	$860	62.1 %	-4.7 %
Indianapolis-Carmel- Greenwood, IN	$1,273	-1.6 %	$1,710	-3.6 %	$437	34.3 %	-2.7 %
Jacksonville, FL	$1,479	-1.9 %	$2,149	-6.1 %	$670	45.3 %	-6.0 %
Kansas City, MO-KS	$1,460	3.8 %	$1,640	0.8 %	$180	12.3 %	2.6 %
Las Vegas-Henderson-North Las Vegas, NV	$1,457	-1.8 %	$2,131	-4.4 %	$674	46.3 %	-3.4 %
Los Angeles-Long Beach- Anaheim, CA	$2,787	-1.8 %	$4,836	-4.9 %	$2,049	73.5 %	-4.0 %
Louisville/Jefferson County, KY-IN	$1,220	-1.9 %	$1,657	0.9 %	$437	35.8 %	2.5 %
Memphis, TN-MS-AR	$1,101	-5.2 %	$1,379	-1.6 %	$278	25.2 %	-0.7 %
Miami-Fort Lauderdale-West Palm Beach, FL	$2,279	-1.3 %	$2,971	-4.9 %	$692	30.4 %	-5.0 %
Milwaukee-Waukesha, WI	$1,716	-0.3 %	$2,588	1.9 %	$872	50.8 %	3.8 %
Minneapolis-St. Paul- Bloomington, MN-WI	$1,514	0.3 %	$2,275	-5.8 %	$761	50.3 %	-5.7 %
Nashville-Davidson-- Murfreesboro--Franklin, TN	$1,488	-3.9 %	$2,646	-6.2 %	$1,158	77.8 %	-5.4 %
New Orleans-Metairie, LA	NA	NA	NA	NA	NA	NA	NA
New York-Newark-Jersey City, NY-NJ	$2,972	0.3 %	$4,795	-4.9 %	$1,823	61.3 %	-4.5 %
Oklahoma City, OK	$915	-1.5 %	$1,543	-8.8 %	$628	68.6 %	-9.0 %
Orlando-Kissimmee-Sanford, FL	$1,682	-1.6 %	$1,701	-6.9 %	$19	1.1 %	-7.7 %
Philadelphia-Camden- Wilmington, PA-NJ-DE-MD	$1,763	-0.8 %	$2,331	-4.8 %	$568	32.2 %	-4.4 %
Phoenix-Mesa-Chandler, AZ	$1,433	-4.0 %	$2,183	-7.1 %	$750	52.3 %	-6.7 %
Pittsburgh, PA	$1,452	1.5 %	$1,583	-1.1 %	$131	9.0 %	0.0 %
Portland-Vancouver- Hillsboro, OR-WA	$1,606	-1.6 %	$2,697	-6.2 %	$1,091	67.9 %	-6.0 %
Providence-Warwick, RI-MA	NA	NA	NA	NA	NA	NA	NA
Raleigh-Cary, NC	$1,443	-1.3 %	$2,289	-7.0 %	$846	58.6 %	-6.3 %
Richmond, VA	$1,527	-1.2 %	$2,338	0.1 %	$811	53.1 %	1.7 %
Riverside-San Bernardino- Ontario, CA	$2,043	-2.9 %	$2,699	-2.7 %	$656	32.1 %	-1.6 %
Rochester, NY	NA	NA	NA	NA	NA	NA	NA
Sacramento-Roseville- Folsom, CA	$1,823	-2.2 %	$2,840	-1.6 %	$1,017	55.8 %	-0.2 %
San Antonio-New Braunfels, TX	$1,156	-4.5 %	$1,982	-6.2 %	$826	71.5 %	4.5 %
San Diego-Chula Vista- Carlsbad, CA	$2,677	-2.7 %	$4,365	3.2 %	$1,688	63.1 %	-2.5 %
San Francisco-Oakland- Fremont, CA	$2,941	2.5 %	$4,415	-10.4 %	$1,474	50.1 %	-7.8 %
San Jose-Sunnyvale-Santa Clara, CA	$3,449	3.8 %	$5,366	1.6 %	$1,917	55.6 %	1.1 %
Seattle-Tacoma-Bellevue, WA	$1,890	-1.0 %	$3,851	-1.8 %	$1,961	103.8 %	-5.9 %
St. Louis, MO-IL	$1,284	-1.9 %	$1,621	0.3 %	$337	26.2 %	-1.2 %
Tampa-St. Petersburg- Clearwater, FL	$1,635	-4.9 %	$1,994	-6.1 %	$359	22.0 %	-7.1 %
Virginia Beach-Chesapeake- Norfolk, VA-NC	$1,589	1.7 %	$2,079	2.2 %	$490	30.8 %	3.9 %
Washington-Arlington- Alexandria, DC-VA-MD-WV	$2,291	-2.3 %	$2,972	-8.8 %	$681	29.7 %	-9.2 %

Methodology:

Rental data as of July 2026 for studio, 1-bedroom, or 2-bedroom units advertised for rent on Realtor.com. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching to March 2019.

About Realtor.com^®

For over 30 years, Realtor.com^® has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR® agents recommend, Realtor.com® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Mallory Micetich, press@realtor.com

View original content:https://www.prnewswire.com/news-releases/realtorcom-july-rent-report-renting-a-starter-home-costs-less-than-buying-in-all-50-largest-us-metros-but-the-gap-is-narrowing-302852082.html

SOURCE Realtor.com

FAQ

What does the July 2026 Realtor.com rent report say about renting vs. buying in major U.S. metros for NWS-linked Realtor.com?

According to Realtor.com, renting a starter home is cheaper than buying in all 50 largest U.S. metros in July 2026. The average buy cost was $2,553, about $858 per month, or 50.6%, more than the median rent of $1,695.

How much is the national median rent in July 2026 in the Realtor.com report associated with NWS?

According to Realtor.com, the national median asking rent for 0–2 bedroom units was $1,695 in July 2026. This is down $24, or 1.4%, year over year, yet remains $225, or 15.3%, above July 2019 levels across the largest 50 metros.

In which U.S. metros is renting most advantageous versus buying according to the July 2026 Realtor.com report?

According to Realtor.com, the largest rent-versus-buy gaps are in Austin, Seattle and Los Angeles. In Austin, renting a starter home costs $1,378 monthly versus $3,295 to buy, a $1,917 or 139.1% difference in favor of renting.

Which markets show improving buying conditions in the July 2026 Realtor.com rent report tied to NWS?

According to Realtor.com, seven metros show improving buying conditions: Oklahoma City, Orlando, Seattle, Miami, Tampa, Las Vegas and Nashville. These markets combine faster starter-home price declines with rent drops and wage growth at or above the 3.8% national rate.

How much has the rent-versus-buy savings gap changed since July 2025 in the Realtor.com July 2026 data?

According to Realtor.com, the monthly cost gap between buying and renting narrowed from $923 to $858 over 12 months. Median rent fell $24, while starter-home buy costs declined $89 due to lower listing prices and slightly reduced mortgage rates.

What are the current trends for studio, one-bedroom, and two-bedroom rents in the July 2026 Realtor.com report?

According to Realtor.com, July 2026 median studio rent was $1,435, one-bedroom $1,581 and two-bedroom $1,893. All unit sizes saw about 1.3–1.4% annual declines, yet remain 13.7% to 17.5% above July 2019 levels nationwide.

How does the July 2026 Realtor.com rent report calculate buying costs for starter homes in NWS coverage?

According to Realtor.com, buying costs use median list prices for 0–2 bedroom homes, a 10% down payment and the month’s 30-year fixed mortgage rate. Estimated HOA fees, property taxes and homeowners insurance at the metro level are added to derive total monthly buy costs.