Renting a starter home remains a more affordable option the homeownership in all 50 of the nation’s largest metros, with an average monthly savings of $920 compared to buying.
According to a data report from Realtor.com, the national median asking rent in March was $1,669, down $25 or 1.5%, year-over-year. This marked the 32nd consecutive month of annual declines for 0–2 bedroom properties, although it was also still $249 (17.5%) above pre-pandemic levels.
Realtor.com noted that this situation could be a blessing in disguise for renters aspiring to homeownership, as the savings provide the opportunity to build toward a future home purchase. This would be especially viable in a market like Austin, where monthly buying costs run $1,719 (126.3%) higher than renting.
“A person moving into the typical rental spends less each month than someone buying a starter home today,” said Danielle Hale, chief economist at Realtor.com. “As buying costs have eased in many markets, renters who are intentional about saving have a real opportunity to build toward a down payment faster than they might think.”
However, not all markets offer this situation – particularly in the pricier metro areas. For example, in San Jose buying a starter home still costs 74% more per month than renting. But renting a starter home today results in $420 per month less savings compared to one year ago.
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