Renting is Still More Affordable than Buying in All but Two Major U.S. Metros

Core Insights - The average U.S. median asking rent has reached $1,703, showing a slight decline of 0.2$257 (16.1%) higher than January 2020, reflecting lingering effects from rapid rent growth in 2021 and 2022 [3][9] Rental Affordability Trends - Most metropolitan areas have become more renter-friendly, with a notable increase in renter households expected and a decline in the homeownership rate anticipated for 2025 [2] - The report highlights that in three metros—New York, San Jose, and Detroit—the share of income spent on both renting and buying is increasing, making these areas less favorable for both renters and buyers [5] - Kansas City is identified as a metro becoming more buyer-favoring, where a higher share of income is spent on rents compared to buying [6] Year-over-Year Changes - The report provides a detailed analysis of various metros, showing changes in the percentage of income spent on renting and buying. For instance, Baltimore saw a 2.2% increase in income spent on buying while rent decreased by 0.4% [7] - The national rental data for January 2025 indicates that studio rents are at $1,423, 1-bedroom at$1,585, and 2-bedroom at $1,887, with respective year-over-year changes of 0.0$1,565 with a 2.9% decrease, while Boston's median rent is significantly higher at $2,925 with a 0.5$1,313, reflecting a 1.3% increase, while Pittsburgh's median rent is $1,431, showing a 0.2% increase, both indicating a more favorable buying environment [11]