Realtor.com® July Rental Report: Renting Still Beats Buying in All of the Largest U.S. Metros
Realtor.com®'s July Rental Report reveals that renting remains more affordable than buying in all 50 largest U.S. metros, a trend continuing since February. Elevated mortgage rates and high home prices contribute to over $1,000 in monthly savings by renting. The top metros with the highest rent-to-buy savings are Austin, TX, Seattle, WA, and Los Angeles, CA, with monthly savings of $2,120, $2,222, and $2,784, respectively. Despite overall rent declines for 12 consecutive months, the advantage of renting over buying is shrinking in some areas due to increasing affordable inventory. The report highlights that the monthly cost of buying a starter home is 61.3% higher than renting. However, this trend may change as affordable inventory continues to increase, easing the financial burden on first-time homebuyers.
Il Rapporto sugli Affitti di Realtor.com® di luglio rivela che affittare è ancora più conveniente rispetto all'acquisto in tutte le 50 metropoli statunitensi più grandi, una tendenza che continua da febbraio. I tassi elevati dei mutui e i prezzi delle case alti contribuiscono a oltre $1,000 di risparmi mensili affittando. Le principali metropoli con i maggiori risparmi tra affitto e acquisto sono Austin, TX, Seattle, WA e Los Angeles, CA, con risparmi mensili di $2,120, $2,222 e $2,784, rispettivamente. Nonostante un calo generale degli affitti per 12 mesi consecutivi, il vantaggio dell'affittare rispetto all'acquistare sta diminuendo in alcune aree a causa dell'aumento dell'inventario accessibile. Il rapporto evidenzia che il costo mensile per acquistare una casa da iniziare è superiore del 61,3% rispetto all'affitto. Tuttavia, questa tendenza potrebbe cambiare man mano che l'inventario accessibile continua a crescere, alleviando il carico finanziario sui nuovi acquirenti di case.
El Informe de Alquiler de Realtor.com® de julio revela que alquilar sigue siendo más asequible que comprar en las 50 áreas metropolitanas más grandes de EE.UU., una tendencia que se ha mantenido desde febrero. Las tasas hipotecarias elevadas y los altos precios de la vivienda contribuyen a más de $1,000 en ahorros mensuales al alquilar. Las principales áreas metropolitanas con los mayores ahorros al alquilar frente a comprar son Austin, TX, Seattle, WA y Los Ángeles, CA, con ahorros mensuales de $2,120, $2,222 y $2,784, respectivamente. A pesar del descenso general del alquiler durante 12 meses consecutivos, la ventaja de alquilar sobre comprar se está reduciendo en algunas áreas debido al aumento del inventario asequible. El informe destaca que el costo mensual de comprar una casa inicial es un 61.3% más alto que alquilar. Sin embargo, esta tendencia podría cambiar a medida que el inventario asequible siga aumentando, aliviando la carga financiera sobre los compradores de vivienda por primera vez.
Realtor.com®의 7월 임대 보고서에 따르면, 미국에서 가장 큰 50개 대도시 전반에 걸쳐 임대가 구매보다 더 저렴하다는 것이 드러났으며, 이는 2월 이후 계속되고 있는 추세입니다. 높은 주택담보대출 금리와 집값 상승으로 인해 임대하는 것이 월 $1,000 이상의 저축으로 이어집니다. 임대와 구매 간의 저축이 가장 높은 도시들은 텍사스 주 오스틴, 워싱턴 주 시애틀, 캘리포니아 주 로스앤젤레스이며 각각 월 $2,120, $2,222, 및 $2,784를 저축할 수 있습니다. 12개월 연속으로 전체적으로 임대가 하락했음에도 불구하고, 저렴한 재고가 증가함에 따라 일부 지역에서는 임대의 장점이 줄어들고 있습니다. 보고서에서는 초급 주택 구매의 월 비용이 임대보다 61.3% 더 높다고 강조합니다. 그러나 저렴한 재고가 계속 증가함에 따라 이 추세는 변경될 수 있으며, 이는 처음 주택을 구매하려는 이들에게 재정적 부담을 줄여줄 것입니다.
Le Rapport de Location de Realtor.com® de juillet révèle que louer reste plus abordable que d'acheter dans toutes les 50 plus grandes métropoles américaines, une tendance qui se poursuit depuis février. Des taux hypothécaires élevés et des prix de l'immobilier élevés contribuent à plus de 1 000 $ d'économies mensuelles en louant. Les principales métropoles avec les plus grandes économies entre location et achat sont Austin, TX, Seattle, WA et Los Angeles, CA, avec des économies mensuelles de 2 120 $, 2 222 $ et 2 784 $, respectivement. Malgré une baisse générale des loyers pendant 12 mois consécutifs, l'avantage de la location par rapport à l'achat diminue dans certaines régions en raison de l'augmentation de l'inventaire abordable. Le rapport souligne que le coût mensuel pour acheter une maison d'entrée de gamme est supérieur de 61,3 % à celui de la location. Cependant, cette tendance pourrait changer à mesure que l'inventaire abordable continue d'augmenter, allégeant ainsi le fardeau financier des primo-accédants.
Der Mietbericht von Realtor.com® für Juli zeigt, dass das Mieten in allen 50 größten US-Metropolen nach wie vor günstiger ist als der Kauf, eine Tendenz, die seit Februar anhält. Hohe Hypothekenzinsen und hohe Immobilienpreise führen zu monatlichen Ersparnissen von über 1.000 USD durch Mieten. Die wichtigsten Metropolen mit den höchsten Ersparnissen beim Mieten im Vergleich zum Kauf sind Austin, TX, Seattle, WA und Los Angeles, CA, mit monatlichen Einsparungen von 2.120 USD, 2.222 USD und 2.784 USD. Trotz eines allgemeinen Rückgangs der Mieten über 12 aufeinanderfolgende Monate verringert sich der Vorteil des Mietens gegenüber dem Kauf in einigen Gebieten aufgrund der zunehmenden Verfügbarkeit von erschwinglichen Wohnungen. Der Bericht hebt hervor, dass die monatlichen Kosten für den Kauf eines Starterhauses 61,3% höher sind als die Miete. Diese Tendenz könnte sich jedoch ändern, da das Angebot an erschwinglichen Immobilien weiter zunimmt, wodurch die finanzielle Belastung für Erstkäufer verringert wird.
- None.
- The renting advantage has shrunk in 23 of the top 50 markets, reducing rental savings.
- San Francisco, San Jose, Denver, Washington, and Miami saw the largest decrease in rent advantages, with reductions ranging from $563 to $273.
Insights
This report reveals significant financial implications for both the rental and housing markets. The 61.3% higher monthly cost of buying versus renting a starter home in the top 50 metros is a important data point. This substantial difference, amounting to
The trend of renting being more affordable than buying has expanded to all 50 largest metros, up from 47 last year. This shift is driven by elevated mortgage rates, high home prices and falling rents. The twelfth consecutive year-over-year rent decline for 0-2 bedroom properties is particularly noteworthy, indicating a sustained downward pressure on rental prices.
However, it's important to note that the advantage of renting over buying has narrowed by
The report highlights significant regional variations in the rent-vs-buy equation. Austin, Texas stands out with a staggering
Interestingly, some traditionally expensive markets like San Francisco and San Jose are seeing the most significant narrowing of the rent advantage. This could indicate a rebalancing in these markets, possibly due to changing work patterns post-pandemic. The fact that 23 of the top 50 markets saw a diminishing rent advantage over the past 12 months suggests this trend may be widespread.
The report also notes an increase in smaller, more affordable homes for sale. This could be a response from developers to the affordability crisis, potentially leading to a more balanced market in the future. However, the persistence of the renting advantage across all major metros indicates that this shift is still in its early stages.
The data presents a complex economic picture with potential long-term implications. The sustained advantage of renting over buying, now present in all 50 largest metros, could have significant impacts on wealth accumulation patterns. Traditionally, homeownership has been a key wealth-building tool for many Americans. If this trend continues, it may necessitate a reevaluation of financial planning strategies, particularly for younger generations.
However, the narrowing of the rent advantage in many markets, coupled with the influx of more affordable housing inventory, suggests we may be at an inflection point. The potential for mortgage relief, as mentioned in the report, could further shift the balance. This could lead to increased first-time home buying activity in the near future, potentially stimulating the housing market and broader economy.
The regional variations in these trends also highlight the importance of local economic factors. Cities like Memphis and Birmingham becoming rent-favoring markets over the last 12 months, partly due to increased investor activity, underscores the complex interplay between various economic actors in shaping local housing markets.
Top Three Metros Where Renting Beats Out Buying Include Austin-Round Rock-
"For every major
Additionally, this July marks the twelfth year-over-year rent decline in a row for 0–2-bedroom properties.
The top 10 metros with the largest rent versus buy savings (see below for top 50 metros):
Austin -Round Rock -Georgetown, Texas –buying cost144.4% more than renting ($2,120 Seattle -Tacoma -Bellevue, Wash. –107.7% ($2,222 Los Angeles-Long Beach -Anaheim, Calif. –99.5% ($2,784 Nashville -Davidson -Murfreesboro -Franklin, Tenn. –93.3% ($1,399 Phoenix -Mesa -Chandler, Ariz. –91.6% ($1,396 Columbus, Ohio –91.3% ($1,090 Dallas- Fort Worth -Arlington, Texas –88.3% ($1,307 San Francisco -Oakland -Berkeley, Calif. –88.2% ($2,442 New York -New Jersey -Jersey City , N.Y., N.J., Pa. –81.1% ($2,342 Boston -Cambridge -Newton, Mass. –78.6% ($2,336
Renting a starter home continues to be a more affordable option in all 50 metros
A common question potential first-time homebuyers face is whether it makes sense to continue renting or if it's time to make a home purchase, and one of the top considerations is the financial costs and benefits of renting versus owning. In July 2024, the cost of buying a starter home in the top 50 metros was
Change on the Horizon? The Advantage of Renting Shrank in Many Metros
Compared to last year, the advantage of renting shrank by 2 percentage points propelled by a greater influx of smaller and more affordable homes for sale leading to a slight decline in listing prices for starter homes. Last July, the average monthly cost of buying a starter home in the top 50 metros was
Over the past year 23 of the top 50 markets saw a diminishing rent advantage over the past 12 months and this advantage shrank the most in
However, not every metro saw a diminishing advantage in renting. In fact
Top metros with diminishing advantage in renting (Dollar amount difference from July 2023 to July 2024)
San Francisco -Oakland -Berkeley, Calif. – -$563 San Jose -Sunnyvale -Santa Clara, Calif. – -$468 Denver -Aurora -Lakewood, Colo. – -$314 Washington -Arlington -Alexandria , D.C.-Va.-Md.-W.Va – -$282 Miami -Fort Lauderdale -Pompano Beach, Fla. – -$273
Top metros with increasing advantage in renting (Dollar amount difference from July 2023 to July 2024)
Memphis, Tenn. -Miss.-Ark. –$246 Birmingham -Hoover, Ala. –$209 New York -New Jersey -Jersey City , N.Y., N.J., Pa –$173 Los Angeles-Long Beach -Anaheim, Calif. –$156 Richmond - Va. –$130
Realtor.com®'s rent versus buy calculator can help consumers determine if the cost of homeownership is a better deal than renting based on their location and budget.
Unit Size | Median Rent | Rent YoY | Rent Change – 5 years (July 2019) |
Overall | -0.7 % | 19.8 % | |
Studio | -0.9 % | 15.1 % | |
1-bed | -1.4 % | 17.7 % | |
2-bed | -0.6 % | 21.7 % |
Rental Data – 50 Largest Metropolitan Areas – July 2024
Metro | Median Rent | Monthly Buy | $Difference | % Difference | Rent Cost: | Buy Cost: |
57.5 % | -6.1 % | -2.3 % | ||||
144.4 % | -10.2 % | -10.7 % | ||||
18.2 % | -2.5 % | 3.1 % | ||||
8.0 % | 0.5 % | 18.0 % | ||||
78.6 % | -2.5 % | -2.9 % | ||||
70.2 % | 16.0 % | 0.4 % | ||||
46.8 % | -6.1 % | -2.8 % | ||||
47.9 % | 0.2 % | 0.0 % | ||||
43.8 % | 2.9 % | -4.9 % | ||||
46.0 % | 0.1 % | 6.6 % | ||||
91.3 % | -1.9 % | -0.2 % | ||||
88.3 % | -4.1 % | -5.9 % | ||||
66.3 % | -1.5 % | -9.7 % | ||||
31.1 % | 2.2 % | 8.7 % | ||||
36.9 % | 8.0 % | 15.4 % | ||||
74.2 % | -2.2 % | -4.6 % | ||||
39.1 % | 1.1 % | 0.4 % | ||||
61.8 % | -5.0 % | -2.4 % | ||||
31.5 % | 1.2 % | 1.6 % | ||||
57.7 % | -3.9 % | 0.5 % | ||||
99.5 % | -1.8 % | 1.9 % | ||||
37.0 % | -2.8 % | 3.6 % | ||||
17.1 % | -3.9 % | 15.8 % | ||||
34.1 % | -3.5 % | -10.1 % | ||||
37.0 % | 3.5 % | 1.3 % | ||||
60.4 % | 4.4 % | -6.2 % | ||||
93.3 % | -10.1 % | -1.8 % | ||||
91.9 % | -4.0 % | 0.8 % | ||||
81.1 % | 0.4 % | 3.6 % | ||||
57.2 % | -0.4 % | -13.1 % | ||||
32.2 % | -4.8 % | -3.0 % | ||||
38.1 % | -0.4 % | 3.1 % | ||||
91.6 % | -5.6 % | -1.4 % | ||||
0.5 % | 2.7 % | 4.3 % | ||||
77.7 % | 3.9 % | -4.6 % | ||||
54.8 % | 5.3 % | 7.5 % | ||||
71.0 % | -3.6 % | 0.3 % | ||||
64.3 % | -2.8 % | 3.6 % | ||||
49.7 % | 0.2 % | 1.9 % | ||||
110.8 % | 7.9 % | 4.0 % | ||||
78.1 % | 8.3 % | -2.1 % | ||||
65.2 % | -7.8 % | -11.9 % | ||||
73.0 % | -1.3 % | -4.4 % | ||||
88.2 % | -5.4 % | -12.1 % | ||||
77.1 % | 4.1 % | -5.3 % | ||||
107.7 % | 0.6 % | -5.4 % | ||||
16.7 % | -0.4 % | 7.9 % | ||||
46.8 % | -2.2 % | -5.8 % | ||||
24.6 % | 4.4 % | -3.5 % | ||||
43.5 % | 0.4 % | -7.7 % |
Methodology
Rental data as of July 2024 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 top 50 largest metropolitan areas. Realtor.com® began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.
The monthly cost of buying a home was calculated by averaging the median listing prices of studio, 1-bed, and 2-bed homes, weighted by the number of listings, in each housing market. Monthly buying costs assume a
With the release of its July 2024 rent report, Realtor.com® incorporated a new and improved methodology for capturing and reporting more comprehensive rental listing trends and metrics. The new methodology is expected to yield a cleaner, more representative and more consistent measurement of rental listings and trends at both the national and local level. The methodology has been adjusted to better represent the true cost of primary housing for renters. Most areas across the country will see minor changes with a smaller handful of areas seeing larger updates. As a result of these changes, the rental data released since July 2024 will not be directly comparable with previous releases and Realtor.com® economics blog posts. However, future data releases, including historical data, will consistently apply the new methodology.
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
Media Contact: Mallory Micetich, press@realtor.com
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SOURCE Realtor.com
FAQ
Why is renting more affordable than buying in all major U.S. metros in July 2024?
Which metros offer the highest savings by renting over buying?
How has the renting advantage changed in the past year?
What is the national median rent for different unit sizes in July 2024?
Which metros saw the most significant decrease in rental advantage?
