Renting is cheaper than buying a home, according to senior housing economists.
“Rent continues to fall in many of the major metros across the United States for a variety of reasons,” explains Joel Berner, a senior economist at Realtor.com®. “The biggest one is that rent is still correcting itself from the dramatic run-up of 2021 and 2022, when several years’ worth of rent gains were seen over the span of a few months.”
Why is renting cheaper than buying?
The national average rent across the top 50 metro areas fell to $1,672—$85 (-4.8%) lower than its summer 2022 peak but $221 (15.2%) higher than its pre-pandemic level.
I read this article HERE. By Dina Sartore-Bodo
While renting remains cheaper than buying, with a median mortgage payment of $2,040 versus $1,672 for rent, the gap is narrowing due to lower mortgage rates, making homeownership more appealing for some buyers.
National median asking rent by unit size
Rents on studio units haven’t fallen much, down just 1.2%, indicating that more people are renting solo.
Meanwhile, one- and two-bedroom units have seen a slightly larger drop, around 1.4% to 1.7%.
Mortgage vs. rent calculator
If you’re still renting but looking to buy a home, a good place to start evaluating your finances is by using a mortgage vs. rent calculator.
The tool will allow you to compare your current rent versus what you have saved for a down payment and what your mortgage payments would be.
“By offering personalized insights, the calculator empowers consumers to evaluate not only the best option for their current situation but also how the decision could impact their finances in the years to come,” says Realtor.com economist Jiayi Xu.
U.S. monthly rental reports 2025
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