Buying is gaining ground as the rent advantage shrinks in 37 of the 50 largest U.S. metros
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 YYAustin-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. 2024San Jose-Sunnyvale-Santa Clara, CA $3,414 $5,679 $2,265 66.3% -$349Austin-Round Rock-Georgetown, TX $1,467 $3,150 $1,683 114.7% -$292Dallas-Fort Worth-Arlington, TX $1,461 $2,455 $994 68.0% -$272Seattle-Tacoma-Bellevue, WA $1,997 $3,784 $1,787 89.5% -$210Columbus, 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. 2024Birmingham-Hoover, AL $1,205 $1,399 $194 16.1% $189Milwaukee-Waukesha, WI $1,673 $2,515 $842 50.3% $136Memphis, TN-MS-AR $1,180 $1,270 $90 7.6% $124Oklahoma City, OK $980 $1,504 $524 53.5% $118Baltimore-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 ChangesAtlanta-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 NACharlotte-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 NAHouston-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 NANew 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 NARaleigh-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 NASacramento-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%
MethodologyRental 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 2020with data history stretching to March 2019.
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Media contact: Asees Singh, press@realtor.com
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