Revealed: The two US cities where it’s cheaper to buy a home than rent one

Detroit and Pittsburgh are the only major US cities where it is cheaper to buy a home than rent one, new analysis shows. 

The two Rust Belt cities have the lowest average listing prices of the 50 largest metro areas, according to Realtor.com. As a result, mortgage payments are lower than elsewhere too.

In Pittsburgh, Pennsylvania, the average home was listed at $229,700 in January, with a monthly mortgage of $1,199 – more than $200 less than the city’s typical rent of $1,413.

But the gap in the Steel City is narrowing as rental prices decline and home prices rise.

In Detroit – recently named the most affordable city in the US – rental costs are also  lower. The typical home was listed at $239,950, which works out at a monthly mortgage of $1,252 – below average rent of $1,313.

In contrast to Pittsburgh, rent prices in the Motor City are increasing, making homeownership an even more attractive option. 

‘For most Americans owning a home is still a big part of the American Dream, yet the lower monthly costs of renting in all but 2 of the 50 largest markets are a key consideration,’ said Danielle Hale, chief economist at Realtor.com. 

Detroit and Pittsburgh (pictured) are the only major US cities where it is cheaper to buy a home than rent one

‘This relative cost advantage is one of the reasons we expect an increase in renter households and declines in the homeownership rate in 2025.’

Across the US as a whole, most metros have become more affordable for both buyers and renters in the past year, according to the Realtor.com analysis. 

The number of cities where it’s cheaper to buy than rent has dropped from six last year to just two in 2025. 

This reflects the ongoing decline in rental prices and the persistence of high mortgage rates. 

While mortgage rates began to fall last fall, they soon climbed back up and have remained elevated through late 2024 and into 2025. 

According to the latest data from Freddie Mac, the average 30-year fixed rate mortgage was 6.87 percent as of February 13.  

Over the past year, the housing market as a whole has moved in a more renter-friendly direction.

Average rents across the US declined 0.2 percent year over year to January, reaching $1,703.  

In Pittsburgh, Pennsylvania , homes were typically on sale for $229,700 last month, with a monthly mortgage payment of $1,199

in Detroit, the typical home list price was $239,950 in January, with a monthly mortgage payment of $1,252. This is compared to median rent of $1,313

Over the past year, the housing market as a whole has moved in a more renter-friendly direction in the US 

‘For most Americans owning a home is still a big part of the American Dream, yet the lower monthly costs of renting in all but 2 of the 50 largest markets are a key consideration,’ said Danielle Hale, chief economist at Realtor.com

Even though rents are falling, Americans are still feeling the pinch from the rapid rent growth of 2021 and 2022. 

While the average rent figure for January 2025 is lower than the two previous years, it is still $257 more than it was before the Covid-19 pandemic at the start of 2020. 

The analysis also looked at the relationship among wage growth, mortgage rates, median rent and media listing price to see which metros are rent-favoring and which metros are buy-favoring.

New York, San Jose and Detroit are the only major cities where the share of income used on both rent and buying a home are growing, according to Realtor.com. 

In these metros it takes more income to both rent the median priced rental unit and buy a averagely priced home, making the cities both less renter and less buyer-favoring. 

Just one metro is moving toward becoming more favorable to buyers, whereas 18 have become more rent-favoring.

In Kansas City, a higher share of income is spent on rents and a lower share of income on buying.