Yes, it is still generally cheaper to rent than to buy but that is changing as the median listing price of a starter home in the 50 main metros dropped 2.9% year over year while rents declined 1.4%.
These metro areas saw the biggest decrease in median list buying price as compared with rents.
While California rents aren’t cheap – figure on a median listing of $2,985 per month – comparable ownership costs check in at $6,316 monthly. This amounts to a savings of 47%.
And, while both rent and ownership costs in California are very high, the median for 26 metros outside of California show $1,838 monthly rent as opposed to ownership costs of $3,383.
For the 26th straight month, September 2025 saw rental rates decline on 0-2 bedroom properties. The drop was 2.1% or $36.
The median rent in the fifty largest metro areas was $1,703, down $56 (3.2%) from it’s high in August 2022 but still $241 (16.5%) higher than the pre-pandemic level.
All unit sizes saw drops in rental rates, with one-bedroom prices down 2.3%.
Two years after the eviction moratorium expired, eviction cases remain high in the Bay Area.
Pre-pandemic (2019), Alameda County had 226 eviction cases filed per 100,000 residents. After the eviction moratorium expired in 2023, the number of cases per 100,000 jumped to 293. In 2024, the number was 362 per 100,000. The current pace in 2025 will exceed that number.
While there can a number of reasons for an eviction notice, the primary reason – especially in the Bay Area – is an inability to pay rent.
California has made a concerted effort to include low-income and moderate-income units in new housing projects with mixed success. Most of the low-income apartments are taken but many of the moderate-income units remain vacant, even after two years. Currently, moderate-income units have a vacancy rate of 7%, more than double the rate of low-income apartments.
Analysts point to the fact that affordability thresholds are tied to the area median income and not the actual market rates meaning that “affordable housing” isn’t necessarily “affordable” and “below-market rate housing” isn’t necessarily “below-market rate.”
Nationwide, rents have declined for 19 straight months except in Manhattan, where they rose 7%. However, it’s important to keep in perspective that rents remain 14% higher nationwide than they were before the pandemic.
The ten metro areas where they have fallen the most include:
For the sixteenth consecutive week, rental prices have fallen nationwide. In the 50 largest metro areas, the median rent in November was $1,703, down $17 from October and $57 below it’s high in August 2022.
Generally, smaller properties saw the largest percentage of decline with studio apartments down 1.6% year over year.
It’s important to remember, however, that current rents are significantly higher than before the pandemic (18.1%) which, while steep, pales in comparison with 49.7% increase in price per square foot home sales.
While rental prices are up nearly 20% from pre-pandemic levels, there are an number of cities where median rents can be found for under $1,500 a month.
Below are the top 15 metro areas where rents are less than $1,500 (the median price is included):
Sure, most folks want to own their own home but, plain and simple, most folks can’t afford to buy. And, while the prices of homes continues to rise, rents have actually declined for 12 months in a row.
And some major metro areas the savings are quite dramatic (over $1,000 per month). Below are the top metro areas where renting is chaeper than buying a starter home. The percentage save is included.
With mortgage rates still high and home listings still scant, may would-be homebuyers have no choice but to continue to rent. Listed below are the top ten rental markets, taking into account rent-to-income ratio (displayed after the city’s name) as well as job opportunities, average commute time and access to local amenities. Note that all ten are in the South and Midwest, with none in the West or Northeast.