Renting Beats Buying in These U.S. Markets

Renting costs less than homeownership, including mortgage payments, property taxes, and insurance, in all 50 of the nation’s largest metropolitan areas, according to a recent study from Bankrate. On average, Americans are paying 38 percent more per month to own a home than to rent one.

The disparity is especially pronounced in tech-centric cities where home prices remain high. In San Francisco, owning a home is 139 percent more expensive than renting. The same holds true in Austin (136 percent), Seattle (121 percent), Los Angeles (117 percent) and San Diego (112 percent). High property taxes, costly homeowners insurance, and elevated maintenance expenses compound the financial burden of ownership in these markets.

In contrast, more modest price gaps appear in Rust Belt metros like Detroit, Philadelphia and Cleveland, where home prices and the overall cost of living remain comparatively low.

Yet despite some recent easing, renting is hardly a bargain across the board. According to data from RentSpree, the median national rent dropped 5.9 percent from March to April, offering a brief reprieve for tenants. However, the long-term trajectory tells a different story: U.S. rents have soared nearly 30 percent since the start of the COVID-19 pandemic, fueled by inflation, housing shortages and surging demand.

The market also remains highly uneven. High-cost states like California and Massachusetts have seen relatively stable rent prices in recent months, while Sun Belt markets such as Florida and Georgia recorded double-digit rent hikes, according to RentSpree data, driven by ongoing in-migration and limited supply. 

Conversely, places like Tennessee and Arizona experienced substantial declines, likely due to overbuilding or seasonal slowdowns.

Despite regional differences, it’s clear that a larger trend is emerging as renting is no longer seen as a temporary stopgap on the way to homeownership for a growing number of those living in the United States. Instead, it’s becoming an intentional, long-term lifestyle decision.

According to a 2024 report from the Joint Center for Housing Studies at Harvard University, over 22 million renter households in the U.S. now earn $75,000 or more annually, a figure that has more than doubled over the past decade. This reflects a rising class of “lifestyle renters” — individuals who can afford to buy but are choosing to rent for flexibility, location or personal priorities.

A 2023 survey by RentCafe further amplifies this shift, finding that over one in five renters earning six figures say they’re renting by choice, often citing the ability to live in more desirable neighborhoods, avoid home maintenance costs, or preserve liquidity for investments and travel.

Demographic trends also play a role. Millennials — now the largest generation in the housing market — have shown a growing preference for experiences over assets, with many prioritizing mobility and financial flexibility. At the same time, Baby Boomers are increasingly entering the rental market as they downsize and seek simpler living arrangements.

Even families with children are contributing to this change: Zillow data shows that family households make up nearly one-third of all renter households, challenging the old narrative that renting is just for young singles or urban professionals.

In today’s housing landscape, renting often wins on cost, convenience, and flexibility. As prices remain elevated and economic uncertainty lingers, the rental market is no longer a fallback — it’s a front-runner. And for the real estate industry, that’s a trend that demands attention.

Michael Lucarelli is the CEO and co-founder of RentSpree.