Realtor.com says renting a starter home is still cheaper than buying in all 50 largest metros
Realtor.com’s July 2026 Rent Report says renting a starter home costs less than buying in all 50 of the nation’s largest metros, though the gap narrowed over the past year.
Realtor.com said Tuesday that renting a starter home was still cheaper than buying in all 50 of the nation’s largest metropolitan areas in July, even as the gap between the two narrowed over the past year.
The report says the gap is narrowing as starter-home prices ease and mortgage rates decline. Realtor.com said some markets are moving closer to a crossover point where buying could begin to rival renting on a monthly basis.
The national median asking rent for 0-2 bedroom properties across the 50 largest metros was $1,695 in July 2026, down $24, or 1.4%, from a year earlier, according to the report. That marked the 36th straight month of annual rent declines. Median asking rent across all unit sizes remained $225, or 15.3%, above July 2019 levels and $69, or 3.9%, below the August 2022 peak.
For two-bedroom homes, median asking rent was $1,893, down 1.4% year over year. Realtor.com said that was the 38th consecutive month of annual declines. Two-bedroom rents were 17.5% higher than in July 2019, while one-bedroom rents were 14.6% higher and studio rents were 13.7% higher.
On the buying side, Realtor.com said the average monthly cost of buying a starter home in the 50 largest metros was $2,553 in July 2026. That was $858, or 50.6%, more than renting. A year earlier, buying cost $923, or 53.7%, more than renting. The report said the gap narrowed by $65 over 12 months, helped by a $57 drop from lower typical listing prices and a $33 decrease tied to a lower mortgage rate.
Realtor.com said the 30-year fixed mortgage rate fell from 6.72% in July 2025 to 6.54% in the latest month cited in the report. It also said median listing prices for starter homes fell 2.9% year over year across the 50 largest metros, while rent fell 1.4%.
The report identified seven metros where starter-home listing prices are falling faster than rents and average weekly earnings are growing at or above the 3.8% national rate: Oklahoma City, Orlando, Seattle, Miami, Tampa, Las Vegas and Nashville. Orlando was closest to a monthly crossover, with buying costs only $19 more per month than renting, the release said.
Realtor.com said the largest rent-versus-buy gaps were in Austin, Seattle and Los Angeles. In Austin, the report said renting cost $1,378 per month versus $3,295 to buy, a difference of $1,917. Seattle renters saved $1,961 per month, and Los Angeles renters saved $2,049 per month, according to the release.
Jiayi Xu, senior economist at Realtor.com, said renters have gained financial breathing room over the last three years, but the savings gap is no longer moving in only one direction because starter-home prices are falling faster than rents in many places. Xu also said improving buying conditions do not make buying automatic, but they do give renters more flexibility and confidence.
Realtor.com said it compares monthly buy costs using median list prices for 0-2 bedroom starter-home listings, a 10% down payment, the 30-year fixed mortgage rate, and metro-level HOA fees, taxes and homeowners insurance. It said rental data cover studio, one-bedroom and two-bedroom units advertised for rent on Realtor.com in the 50 largest metros.
The company said it has published monthly rental trend reports since October 2020 and that its rental data history goes back to March 2019.
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