Realtor.com’s Rental Report reveals that renting is more cost-effective than buying a starter house in all 50 of the largest metropolitan areas. Phoenix is among the top 10 metros where renting offers the greatest savings, with buying costing 91.6% more and a potential monthly savings of $1,396. This shift is driven by high mortgage rates, elevated home prices, and a recent decrease in rental costs. Despite the substantial financial benefits of renting, the advantage is beginning to diminish in some regions. The rent-versus-buy cost gap has narrowed by two percentage points from last year, largely due to an increase in affordable home listings. This year, the average monthly cost of purchasing a starter home in the top 50 metros is 63.3% higher than renting, compared to a 61.3% premium last year. This slight easing in home prices suggests a minor shift, though renting remains the more economical option overall.
Source: https://www.orionprop.com/topfive/renting-now-beats-buying-in-all-major-us-cities/
