Residential Real Estate News
Ownership More Affordable Than Renting in Most U.S. Markets
According to ATTOM's newly released 2025 Rental Affordability Report, purchasing a home is more affordable than renting a three-bedroom property in over half of county-level markets across the United States.
The report highlights that both homeownership and renting remain financially challenging for the average U.S. worker, with housing costs typically consuming between 25% and 60% of wages. However, in nearly 60% of the 341 counties analyzed, major homeownership expenses on single-family homes require a smaller share of average wages than renting a three-bedroom residence.
For those who can afford a down payment, buying a home remains the more cost-effective option, despite median home prices rising faster than average rents over the past year.
Data-Driven Analysis of Housing Affordability
The report's findings are based on ATTOM's data on average rents and public-record sales of single-family homes, combined with wage statistics from the Bureau of Labor Statistics.
"Finding an affordable home, whether to rent or buy, is like searching for a diamond in a pile of marbles--it's getting tougher as prices continue to climb," said Rob Barber, CEO of ATTOM. "However, in most areas, homeownership remains within reach for those who can manage down payments, which often exceed $200,000."
Barber also cautioned that rising mortgage rates could impact affordability, stating, "The situation remains fragile, particularly if rates continue their upward trend. But for now, homeownership is the better financial option."
Home Prices Outpacing Rent Increases in Most Markets
The report reveals that median home prices have risen--or declined at a slower rate--compared to average three-bedroom rents in 225 of the 341 counties analyzed (66%). The study included counties with populations of at least 100,000 and sufficient housing market data from 2024 to 2025.
Among the largest counties where home prices have increased more than rental rates are:
- Los Angeles County, CA
- Cook County (Chicago), IL
- Maricopa County (Phoenix), AZ
- San Diego County, CA
- Orange County, CA
Conversely, in 116 counties (34%), average rents have risen more than home prices. The most populous of these counties include:
- Harris County (Houston), TX
- Tarrant County (Fort Worth), TX
- Bexar County (San Antonio), TX
- Suffolk County, NY (outside New York City)
- Franklin County (Columbus), OH
Regional Disparities in Homeownership Affordability
The affordability of homeownership varies significantly by region. The Midwest and South present the most favorable conditions for buying, with ownership requiring a smaller share of wages in about:
- 80% of counties in the Midwest
- 60% of counties in the South
- 50% of counties in the Northeast
However, the West bucks this trend, where renting remains the more affordable option in roughly 80% of western markets.
Largest Gaps in Affordability Favoring Homeownership
Among the 341 counties examined, the biggest gaps where owning a home is more affordable than renting include:
- Suffolk County, NY - 59% of wages for homeownership vs. 159% for renting
- Atlantic County, NJ (Atlantic City) - 48% vs. 111%
- Collier County, FL (Naples) - 79% vs. 127%
- Indian River County, FL (Vero Beach) - 47% vs. 83%
- Charlotte County, FL (Punta Gorda) - 43% vs. 69%
In counties with populations over 1 million, the largest affordability gaps in favor of homeownership are:
- Riverside County, CA - 71% vs. 91%
- Wayne County, MI (Detroit) - 15% vs. 22%
- Cook County, IL (Chicago) - 31% vs. 36%
- Allegheny County, PA (Pittsburgh) - 21% vs. 25%
Counties Where Renting Remains the More Affordable Option
In some major markets, renting remains the less costly choice, including:
- Alameda County, CA (Oakland) - 48% for renting vs. 87% for homeownership
- Honolulu County, HI - 64% vs. 103%
- San Mateo County, CA - 31% vs. 69%
- Santa Clara County, CA (San Jose) - 27% vs. 64%
- Loudoun County, VA (outside Washington, D.C.) - 45% vs. 81%
While affordability remains a challenge nationwide, homeownership is the better financial choice in most markets -- particularly in the Midwest and South. However, factors such as rising mortgage rates and regional price trends could shift the balance in the future.
