In all 50 of the biggest U.S. metro areas, renting a starter home is still more economical than buying, with an average monthly savings of $920, according to the Realtor.com March Rental Report. That significant gap provides a chance for renters who want to buy a home in the future, not merely a reflection of the current market.
A quicker route to homeownership and a reduced mortgage payment when the time comes can be achieved by simply applying those monthly savings to a down payment. In rent-favoring economies where the percentage difference is greatest, the method is more attractive. The potential savings is significant in Austin, Texas, where monthly purchasing expenditures are $1,719 (126.3%) greater than renting.
When the time comes, a quicker route to ownership and a reduced mortgage payment can be achieved by simply applying those monthly savings toward a down payment. In rent-favoring markets with the largest percentage disparity, the method is especially attractive. The potential savings is significant in Austin, Texas, where monthly purchasing expenditures are $1,719 (126.3%) more than renting.
Home Savings Trends Vary Across the Nation
For the 32nd consecutive month of annual reductions for residences with 0–2 bedrooms, the national median asking rent in March 2026 was $1,669, down $25, or 1.5%, year over year. The median is $95 (-5.4%) below its August 2022 peak, but it is still $249 (17.5%) over pre-pandemic levels.
The national median asking rent in March 2026 stood at $1,669, down $25, or 1.5%, year-over-year, marking the 32nd consecutive month of annual declines for 0–2 bedroom properties. While still $249 (17.5%) above pre-pandemic levels, the median sits $95 (-5.4%) below its August 2022 peak.
“A person moving into the typical rental spends less each month than someone buying a starter home today,” said Danielle Hale, Chief Economist at Realtor.com. “As buying costs have eased in many markets, renters who are intentional about saving have a real opportunity to build toward a down payment faster than they might think.”
Realtor.com experts say that every household must consider their unique situation, including closing costs, equity accumulated over time, and the opportunity cost of a down payment, when deciding whether to rent or buy. According to a recent Generational Wealth Report from Realtor.com, households that buy their first home by the age of 30 have a 22.5% higher net worth by midlife than those who wait until their 40s.
Renters stand to gain the most from rerouting monthly funds toward a down payment in regions where the difference between purchasing and renting is greatest.
The best markets for renting are as follows:
| Market | Median Rent | Monthly Buy Cost | $ Difference (Buy- Rent) | % Difference (Buy- Rent)/ Rent (2026) | Rent Cost YoY | Buy Cost YoY |
| Austin-Round Rock-San Marcos, Texas | $1,361 | $3,080 | $1,719 | 126.3 % | -6.0 % | -8.8 % |
| Seattle-Tacoma-Bellevue, WA | $1,862 | $3,882 | $2,020 | 108.5 % | 0.4 % | -6.7 % |
| Phoenix-Mesa-Chandler, AZ | $1,435 | $2,627 | $1,192 | 83.1 % | -4.5 % | -11.2 % |
| Los Angeles-Long Beach-Anaheim, CA | $2,760 | $4,986 | $2,226 | 80.7 % | -1.8 % | -8.2 % |
| Dallas-Fort Worth-Arlington, Texas | $1,461 | $2,639 | $1,178 | 80.6 % | -3.2 % | -3.5 % |
| San Francisco-Oakland-Fremont, CA | $2,691 | $4,829 | $2,138 | 79.5 % | -1.9 % | -5.3 % |
| Sacramento-Roseville-Folsom, CA | $1,820 | $3,204 | $1,384 | 76.0 % | -1.2 % | -3.8 % |
| Nashville-Davidson–Murfreesboro–Franklin, TN | $1,477 | $2,596 | $1,119 | 75.8 % | -4.0 % | -9.6 % |
| Columbus, Ohio | $1,166 | $2,046 | $880 | 75.5 % | -1.1 % | -7.7 % |
| San Jose-Sunnyvale-Santa Clara, CA | $3,276 | $5,701 | $2,425 | 74.0 % | 1.6 % | -6.0 % |
“What’s striking is that the crossover in these markets is being driven by two different forces,” said Jiayi Xu, Economist at Realtor.com. “In Pittsburgh, it’s rising rents that are closing the gap. In markets like Memphis and Baltimore, it’s buy costs cooling faster than rents. The path looks different, but the destination is the same, and it’s worth watching as we move through 2026.”
Conversely, three Midwest markets are seeing an increase in the renting advantage. Renting now saves $584 a month over purchasing in Cleveland, up $110 from a year ago. Milwaukee (+$65), and Detroit (+$14), are next.
However, the scenario is not the same in every market where the renting advantage is diminishing. Although the difference is narrowing in expensive coastal areas, most renters still cannot afford to buy. Purchasing a starter home in San Jose, CA, still costs 74.0% more each month than renting. That percentage is 62.2% in Boston and 80.7% in Los Angeles.
There is a significant narrowing in these markets. In comparison to a year earlier, rent in San Jose, CA, was $420 less, in Boston it was $412 less, and in Los Angeles it was $396 less. However, those are changes at the periphery of an already expensive market, not usually an indication that purchasing is now feasible. The Washington, D.C., metro region is the only exception to this rule, since the significant decline in the renting advantage was enough to rank the market among the top five where purchasing could be feasible in the near future.
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