Renting Saves Over $900 a Month, But That Edge is Slipping in Most Major Metros

Rhea-AI Summary

Realtor.com (NASDAQ:NWSA) released its June 2025 Rental Report showing that while renting remains more affordable than buying in 49 of 50 largest U.S. metros, the gap is narrowing. The median asking rent decreased 2.1% year-over-year to $1,711, marking 23 consecutive months of annual declines.

The average monthly savings for renters versus buyers now stands at $908, down $48 from last year. Austin leads with the largest renter savings, where buying costs 114.7% more than renting. Only Pittsburgh remains more affordable for buyers than renters. Notable shifts include San Jose, where the renting advantage decreased by $349 year-over-year, and Memphis, which flipped from favoring buying to favoring renting.

Positive

• Renting still offers significant savings over buying in 49 of 50 largest metros
• Median rents are down 2.1% year-over-year, providing relief to renters
• Rents remain 18.6% higher than pre-pandemic levels (June 2019)
• All unit sizes showed price declines (studios -2.3%, one bedrooms -2.6%, two bedrooms -2.1%)

Negative

• Renting advantage is shrinking in 37 of 50 largest metros
• Average monthly savings for renters decreased by $48 compared to last year
• Median rent is only $48 below its August 2022 peak despite 23 months of declines

Insights

Real Estate Market Analyst

Rental market softening while buying costs decrease faster, shrinking the financial advantage renters have enjoyed since the pandemic.

The latest Realtor.com data reveals a narrowing gap between renting and buying costs across most major US markets, signaling a potential inflection point in housing affordability dynamics. With median rents down 2.1% year-over-year to $1,711 in June, the rental market continues its correction after 23 consecutive months of declines. However, rents remain 18.6% above pre-pandemic levels.

What's particularly notable is the shifting math between renting and buying. While renting remains more affordable than buying in 49 of 50 major metros (Pittsburgh being the exception), the average monthly savings for renters has decreased from $956 to $908 over the past year. This $48 reduction signals that buying costs are declining faster than rental costs in many markets.

The data shows significant regional variations. Austin leads with renters saving 114.7% in monthly costs compared to buyers, yet it's also experiencing one of the largest reductions in this advantage. San Jose saw its rental advantage shrink by $349 over the past year, while Birmingham saw its rental advantage increase by $189.

Perhaps most telling is Memphis, which completely flipped from favoring buying to favoring renting over the past year. This demonstrates how quickly local market dynamics can shift based on mortgage rates, home prices, and rental demand.

For real estate investors, these trends suggest we're approaching an inflection point where the transaction volume in home sales could increase as the financial equation gradually shifts. However, the $908 average monthly premium for buying still represents a significant hurdle for potential homebuyers in most markets, indicating rental demand should remain strong in the near term despite the ongoing moderation in rental rates.

Buying is gaining ground as the rent advantage shrinks in 37 of the 50 largest U.S. metros

AUSTIN, Texas, July 17, 2025 /PRNewswire/ -- The latest Realtor.com^® Rental Report for June 2025 shows that the median asking rent for 0–2 bedrooms is down 2.1% year over year to $1,711. And, even after 23 straight months of annual declines, the U.S. median rent in June was only $48 (-2.7%) below its August 2022 peak. Compared to pre-pandemic levels, rents are still up by $268 (18.6%) over June 2019. In a twist that could surprise many renters, the financial gap between renting and buying is actually closing across much of the country.

"Even with rents leveling for nearly two years, high mortgage rates and still-elevated home prices mean renting remains the more budget-friendly option in nearly every major market," said Danielle Hale, chief economist at Realtor.com^®. "But the narrowing rent versus buy gap we're seeing in most cities is a signal that the affordability landscape is starting to shift. Renters eyeing homeownership will want to pay close attention in the months ahead."

Rents Are Still More Favorable Nationally, But the Buy vs. Rent Math is Shifting
Across the nation's 50 largest metros, median asking rents are down $36 (-2.1%) from last year and nearly $50 below the 2022 peak. All unit sizes declined: studios fell 2.3%, one bedrooms dropped 2.6%, and two bedrooms dipped 2.1%.

Despite this softening, renting remains more affordable than buying in 49 out of 50 metros. Notably, Austin, Texas, a pandemic hotspot, offers the largest monthly savings for renters compared to buyers, where buying would cost 114.7% more than renting–more than double. However, the average monthly savings for renters now stands at $908, down $48 from $956 a year ago, a sign that buying costs are inching closer.

Top Rent-Favoring Markets, June 2025

Market	Median Rent	Monthly Buy Cost	$ Diff. (Buy-Rent)	% Diff. (Buy-Rent)	Rent Cost YY	Buy Cost YY
Austin-Round Rock-Georgetown, TX	$1,467	$3,150	$1,683	114.7 %	-4.7 %	-10.4 %
Los Angeles-Long Beach-Anaheim, CA	$2,719	$5,342	$2,623	96.5 %	-3.4 %	-5.2 %
San Francisco-Oakland-Berkeley, CA	$2,730	$5,232	$2,502	91.6 %	-2.9 %	-1.4 %
Seattle-Tacoma-Bellevue, WA	$1,997	$3,784	$1,787	89.5 %	-2.8 %	-4.8 %
Phoenix-Mesa-Chandler, AZ	$1,491	$2,738	$1,247	83.6 %	-4.7 %	-4.7 %
Sacramento-Roseville-Folsom, CA	$1,877	$3,395	$1,518	80.9 %	-2.9 %	-3.7 %
New York-Newark-Jersey City, NY-NJ-PA	$2,912	$5,140	$2,228	76.5 %	0.8 %	-2.7 %
Nashville-Davidson--Murfreesboro--Franklin, TN	$1,534	$2,700	$1,166	76.0 %	-2.8 %	-7.7 %
San Diego-Chula Vista-Carlsbad, CA	$2,674	$4,676	$2,002	74.9 %	-5.9 %	-6.5 %
Boston-Cambridge-Newton, MA-NH	$3,009	$5,213	$2,204	73.2 %	-1.0 %	-2.2 %

Local Markets Tell Their Own Story
Pittsburgh remains the only major metro where buying a starter home still costs less than renting, but the tides are shifting. Interestingly, renters in the notoriously expensive California metro of San Jose are saving $2,614 per month renting over buying last year, but that's shrunk by $349 in the same time frame. And, while Austin, Texas stands out as the No. 1 place where renting is favored over buying, it's one of the top two metros where renting is experiencing a diminishing advantage over buying as compared to June 2024.

Top Metros With Diminishing Advantage in Renting, June 2025

Market	Median Rent	Monthly Buy Cost	$ Diff. (Buy-Rent)	% Diff. (Buy-Rent)	$Diff. (Buy-Rent): June 2025 vs. 2024
San Jose-Sunnyvale-Santa Clara, CA	$3,414	$5,679	$2,265	66.3 %	-$349
Austin-Round Rock-Georgetown, TX	$1,467	$3,150	$1,683	114.7 %	-$292
Dallas-Fort Worth-Arlington, TX	$1,461	$2,455	$994	68.0 %	-$272
Seattle-Tacoma-Bellevue, WA	$1,997	$3,784	$1,787	89.5 %	-$210
Columbus, OH	$1,218	$1,959	$741	60.8 %	-$201

Other metros, like Birmingham, Ala., saw the most significant increase in rental savings over the past 12 months. And notably, Memphis, Tenn., flipped from favoring buying to favoring renting over the past year. It even ranks third on the list of metros with increasing advantage in renting. This underscores just how quickly local markets can turn.

Top Metros With Increasing Advantage in Renting, June 2025

Market	Median Rent	Monthly Buy Cost	$ Diff. (Buy-Rent)	% Diff. (Buy-Rent), 2025	$Diff. (Buy-Rent): June 2025 vs. 2024
Birmingham-Hoover, AL	$1,205	$1,399	$194	16.1 %	$189
Milwaukee-Waukesha, WI	$1,673	$2,515	$842	50.3 %	$136
Memphis, TN-MS-AR	$1,180	$1,270	$90	7.6 %	$124
Oklahoma City, OK	$980	$1,504	$524	53.5 %	$118
Baltimore-Columbia-Towson, MD	$1,816	$1,926	$110	6.1 %	$65

Rental Data: 50 Largest Metropolitan Areas, June 2025 (alphabetical order)

Market	Rent Cost (0-2 Bedrooms)	Buy Cost (0-2 Bedrooms)	$ Difference (Buy-Rent)	% Difference (Buy-Rent)	Rent Cost: YY	Buy Cost: YY	Rent Cost:  6 Year Changes
Atlanta-Sandy Springs-Alpharetta, GA	$1,579	$2,120	$541	34.3 %	-4.00 %	-4.9 %	11.0 %
Austin-Round Rock-Georgetown, TX	$1,467	$3,150	$1,683	114.7 %	-4.70 %	-10.4 %	18.1 %
Baltimore-Columbia-Towson, MD	$1,816	$1,926	$110	6.1 %	0.00 %	3.5 %	15.7 %
Birmingham-Hoover, AL	$1,205	$1,399	$194	16.1 %	-3.40 %	11.7 %	16.9 %
Boston-Cambridge-Newton, MA-NH	$3,009	$5,213	$2,204	73.2 %	-1.00 %	-2.2 %	17.0 %
Buffalo-Cheektowaga, NY	NA	NA	NA	NA	NA	NA	NA
Charlotte-Concord-Gastonia, NC-SC	$1,527	$2,130	$603	39.5 %	-1.20 %	-0.2 %	18.1 %
Chicago-Naperville-Elgin, IL-IN-WI	$1,786	$2,624	$838	46.9 %	-2.20 %	-4.0 %	14.3 %
Cincinnati, OH-KY-IN	$1,305	$1,868	$563	43.1 %	-4.30 %	-0.5 %	17.5 %
Cleveland-Elyria, OH	$1,220	$1,457	$237	19.4 %	-2.30 %	-9.4 %	24.0 %
Columbus, OH	$1,218	$1,959	$741	60.8 %	0.30 %	-9.1 %	22.5 %
Dallas-Fort Worth-Arlington, TX	$1,461	$2,455	$994	68.0 %	-2.10 %	-11.0 %	15.9 %
Denver-Aurora-Lakewood, CO	$1,786	$2,889	$1,103	61.8 %	-7.70 %	-5.7 %	7.1 %
Detroit-Warren-Dearborn, MI	$1,304	$1,714	$410	31.4 %	-0.10 %	-1.4 %	13.1 %
Hartford-East Hartford-Middletown, CT	NA	NA	NA	NA	NA	NA	NA
Houston-The Woodlands-Sugar Land, TX	$1,355	$1,972	$617	45.5 %	-2.00 %	-7.8 %	9.7 %
Indianapolis-Carmel-Anderson, IN	$1,298	$1,635	$337	26.0 %	-3.40 %	-5.9 %	30.7 %
Jacksonville, FL	$1,503	$2,075	$572	38.1 %	-3.90 %	-6.6 %	27.2 %
Kansas City, MO-KS	$1,406	$1,413	$7	0.5 %	3.70 %	-0.4 %	29.7 %
Las Vegas-Henderson-Paradise, NV	$1,472	$2,147	$675	45.9 %	-3.00 %	-3.9 %	23.1 %
Los Angeles-Long Beach-Anaheim, CA	$2,719	$5,342	$2,623	96.5 %	-3.40 %	-5.2 %	12.2 %
Louisville/Jefferson County, KY-IN	$1,253	$1,509	$256	20.4 %	-3.80 %	-4.2 %	20.8 %
Memphis, TN-MS-AR	$1,180	$1,270	$90	7.6 %	-3.40 %	7.0 %	15.8 %
Miami-Fort Lauderdale-Pompano Beach, FL	$2,352	$3,080	$728	31.0 %	-2.80 %	-3.0 %	36.1 %
Milwaukee-Waukesha, WI	$1,673	$2,515	$842	50.3 %	-0.90 %	5.0 %	21.0 %
Minneapolis-St. Paul-Bloomington, MN-WI	$1,509	$2,300	$791	52.4 %	-2.20 %	-3.5 %	3.7 %
Nashville-Davidson--Murfreesboro--Franklin, TN	$1,534	$2,700	$1,166	76.0 %	-2.80 %	-7.7 %	23.0 %
New Orleans-Metairie, LA	NA	NA	NA	NA	NA	NA	NA
New York-Newark-Jersey City, NY-NJ-PA	$2,912	$5,140	$2,228	76.5 %	0.80 %	-2.7 %	27.9 %
Oklahoma City, OK	$980	$1,504	$524	53.5 %	-2.00 %	7.0 %	8.9 %
Orlando-Kissimmee-Sanford, FL	$1,693	$1,885	$192	11.3 %	-1.50 %	-4.7 %	22.2 %
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	$1,770	$2,395	$625	35.3 %	-2.40 %	-2.7 %	10.3 %
Phoenix-Mesa-Chandler, AZ	$1,491	$2,738	$1,247	83.6 %	-4.70 %	-4.7 %	24.3 %
Pittsburgh, PA	$1,473	$1,362	-$111	-7.5 %	0.20 %	1.0 %	39.9 %
Portland-Vancouver-Hillsboro, OR-WA	$1,684	$2,627	$943	56.0 %	-4.00 %	-4.0 %	16.2 %
Providence-Warwick, RI-MA	NA	NA	NA	NA	NA	NA	NA
Raleigh-Cary, NC	$1,494	$2,333	$839	56.2 %	-4.00 %	-7.9 %	24.0 %
Richmond, VA	$1,521	$2,342	$821	54.0 %	-0.50 %	-2.9 %	25.8 %
Riverside-San Bernardino-Ontario, CA	$2,046	$3,115	$1,069	52.2 %	-4.10 %	-0.8 %	15.9 %
Rochester, NY	NA	NA	NA	NA	NA	NA	NA
Sacramento-Roseville-Folsom, CA	$1,877	$3,395	$1,518	80.9 %	-2.90 %	-3.7 %	27.5 %
San Antonio-New Braunfels, TX	$1,243	$1,868	$625	50.3 %	-2.30 %	-4.8 %	22.0 %
San Diego-Chula Vista-Carlsbad, CA	$2,674	$4,676	$2,002	74.9 %	-5.90 %	-4.3 %	14.1 %
San Francisco-Oakland-Berkeley, CA	$2,730	$5,232	$2,502	91.6 %	-2.90 %	-2.2 %	-4.3 %
San Jose-Sunnyvale-Santa Clara, CA	$3,414	$5,679	$2,265	66.3 %	0.90 %	-5.3 %	8.1 %
Seattle-Tacoma-Bellevue, WA	$1,997	$3,784	$1,787	89.5 %	-2.80 %	-6.6 %	6.8 %
St. Louis, MO-IL	$1,343	$1,369	$26	1.9 %	-0.70 %	1.2 %	23.4 %
Tampa-St. Petersburg-Clearwater, FL	$1,743	$2,308	$565	32.4 %	0.20 %	-2.7 %	39.7 %
Virginia Beach-Norfolk-Newport News, VA-NC	$1,505	$1,890	$385	25.6 %	-2.10 %	-3.2 %	20.9 %
Washington-Arlington-Alexandria, DC-VA-MD-WV	$2,330	$2,976	$646	27.7 %	1.56 %	-3.3 %	17.1 %

Methodology
Rental data as of June 2025 for studio, 1-bedroom, or 2-bedroom units advertised as 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^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering 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:  Asees Singh, press@realtor.com

 

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SOURCE Realtor.com

FAQ

What is the current median asking rent in the US according to Realtor.com's June 2025 report?

The median asking rent for 0-2 bedrooms is $1,711, representing a 2.1% decrease year-over-year.

How much can renters save compared to buyers in 2025?

Renters save an average of $908 per month compared to buyers, though this is down $48 from the previous year's savings of $956.

Which US city has the biggest difference between renting and buying costs in 2025?

Austin, Texas shows the largest gap, where buying costs 114.7% more than renting, with a monthly difference of $1,683.

How have rental prices changed since pre-pandemic levels?

Rents are up $268 (18.6%) compared to June 2019 pre-pandemic levels, despite recent declines.

Which major US metro is the only one where buying is cheaper than renting?

Pittsburgh is the only major metro where buying a starter home costs less than renting, with buyers saving 7.5% compared to renters.