Realtor.com® July Rent Report: Renting a Starter Home Costs Less Than Buying in All 50 Largest U.S. Metros, but the Gap Is Narrowing

Renting a starter home remains less expensive than buying in all 50 of the nation’s largest metropolitan areas, according to the Realtor.com^® July 2026 Rent Report. However, home price, rent trends, and wage growth in seven markets suggest a buying opportunity may be near, even as the Realtor.com^® Market Clock^® is signaling buyer friendly or buyer-leaning conditions in these areas. As the advantages of renting have narrowed over the past year as starter-home costs declined more quickly than rents, creating a more favorable backdrop for prospective buyers in select markets.

The national median asking rent for 0-2 bedroom properties across the 50 largest metros was $1,695 in July, down $24, or 1.4%, from a year earlier. The decline marks the 36th consecutive month of annual rent decreases. Although median rent across all unit sizes remains $225, or 15.3%, above July 2019 levels, it is $69, or 3.9%, below its August 2022 peak.

“Renters have gained meaningful financial breathing room over the last three years, and that advantage is still real in many major metros,” said Jiayi Xu, economist at Realtor.com^®. “But the savings gap is no longer moving in just one direction. Starter-home prices are falling faster than rents in many places, giving households who are ready to buy a stronger reason to stay engaged with the market.”

Rent declines extend across every unit size

In July 2026, the median asking rent for two-bedroom units dropped 1.4% year over year, marking the 38th consecutive month of annual declines. At $1,893, the national median for two-bedroom units now sits $75 (-3.8%) below its July 2022 peak. Despite this broad-based softening, rents remain above pre-pandemic levels. Two-bedroom rents are 17.5% higher than in July 2019, one-bedroom rents are 14.6% higher and studio rents are 13.7% higher.

Renting still delivers significant monthly savings

Across the 50 largest metros, the monthly cost of buying a starter home was $2,553 in July. However, home price, rent trends, and wage growth in a few key markets suggest a buying opportunity may be nearer. The national rent advantage narrowed by $65 from a year ago, when buying cost $923 more per month than renting vs $858 today. Over that period, median rent declined $24, while starter-home buying costs fell $89, reflecting a $57 drop from lower typical listing prices and a $33 decrease from a lower mortgage rate.

To determine the monthly cost of buying a home, we find the median list price of 0-2 bedroom home listings (i.e., starter homes). As first-time homebuyers plan lower down payments, we assume a 10% down payment and use the 30-year fixed mortgage rate during the month to calculate a monthly mortgage payment. We also include the HOA fees, taxes, and homeowners insurance averaged at the metro levels as part of the costs. We then compare this buy cost with the median rent in each metro and focus on the difference between the monthly expenses for each. 

The biggest rent-versus-buy gaps were mostly concentrated in markets that have seen sustained rent relief over the past few years. Austin, Texas led the nation: renting a starter home costs $1,378 per month compared with $3,295 to buy, a $1,917 or 139.1% monthly difference. Seattle renters saved $1,961 or 103.8% per month, and Los Angeles renters saved $2,049 or 73.5% per month.

The overall advantage of renting shrinks compared with a year ago

In July 2026, the average monthly cost of buying a starter home in the largest 50 metros was $858 (50.6%) higher than renting, whereas the cost of buying was $923 (53.7%) higher than renting in July 2025. In other words, the overall advantage of renting narrowed by $65 across the largest 50 metros compared with a year ago. 

While the rent cost declined by $24, from $1,719 to $1,695, over the past 12 months, the buy cost for a starter home dropped by $89, from $2,642 to $2,553—including a $57 decline from changes in typical listing prices and a $33 decrease from a lower mortgage rate, because the 30-year fixed mortgage rate dropped from 6.72% in July 2025 to 6.54% in the last month.  

Top Rent-Favoring Markets, July 2026

Buying conditions are improving in seven markets

Renting may be cheaper today, but the balance is shifting in markets where starter-home listing prices are declining faster than rents and average weekly earnings are growing at or above the 3.8% national rate. Across the 50 largest metros, the median listing price of a starter home fell 2.9% year over year in July, compared with a 1.4% decline in rents.

Seven markets met both measures: Oklahoma City; Orlando, Fla.; Seattle; Miami; Tampa, Fla.; Las Vegas; and Nashville, Tenn. These markets offer different degrees of rent savings today, but each is seeing conditions move more favorably for prospective buyers. Orlando is closest to a monthly crossover, where buying costs only $19 more per month than renting. Meanwhile, Oklahoma City, Seattle and Nashville pair some of the largest monthly savings from renting with improving purchase conditions.

“Improving buying conditions do not make the decision to purchase automatic, especially when renting is still cheaper,” Xu said. “These conditions do give renters more flexibility and confidence when making that decision. Households can continue to save while renting, or, if they are ready to buy, pursue a market where home prices, rents and earnings are increasingly working in their favor.”

Markets Where Buying Conditions Are Improving

Rental Data – 50 Largest Metropolitan Areas – July 2026

Methodology:

Rental data as of July 2026 for studio, 1-bedroom, or 2-bedroom units advertised 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 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching to March 2019.

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