Harsh Reality: Buying A Home Costs 52% More Than Renting
Buying a house is more expensive than renting — a lot more expensive.
On average, it costs 52% more to purchase a house than it does to rent, and demand for rental properties is continuing to soften as more supply comes online in many markets, according to the Zumper National Rent Report, which analyzes rental data from more than 1 million active listings across the country.
Renters have more options and less competition than they did a year ago, and prices are continuing to soften in many markets. Half of the cities on Zumpers top 100 list are down compared to November last year. The national median rent for one- and two-bedroom homes is down for the second consecutive year, and year-over-year growth rates are at their lowest point since December 2020.
"We're seeing most major markets settle into their new resting heart rates," Zumper CEO Anthemos Georgiades said. "Miami, for example, is more expensive than prepandemic, but it's no longer seeing steep hikes month after month."
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One-Bedroom Median Rent Prices
1 | New York City | $4,300 |
2 | Jersey City, New Jersey | $3,090 |
3 | Boston | $2,990 |
4 | San Francisco | $2,970 |
5 | Miami | $2,600 |
6 | San Jose, California | $2,480 |
7 | San Diego | $2,400 |
8 | Los Angeles | $2,330 |
9 | Washington, D.C. | $2,330 |
10 | Arlington, Virginia | $2,270 |
Source: Zumper
Some of the steepest year-over-year declines are showing up in the Sun Belt. Eight of the nine Texas cities and five of the six Arizona cities on the list are down year over year.
Cities like New York are anomalies. The median rent of $4,300 per month is an all-time high in the Big Apple and up 13.5% year over year. More than half of New York City households spend 30% or more of their income on rent, according to the New York City Housing and Vacancy Survey.
It is possible for average renters to live well in many of the cities on Zumper's list. In St. Louis, for example, you can rent a luxury, two-bedroom, two-bath apartment with skyline views for about one-third of the price of a one-bedroom unit in New York City. In Colorado Springs, rents at a new luxury building with concierge services, a pool and a spa starting at $1,499.
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