Renting can still make significantly more financial sense than buying in many U.S. cities. High home prices, mortgage rates, property taxes, insurance, and other ownership costs have created surprisingly large gaps between monthly rent and the cost of purchasing a starter home.
According to Realtor.com’s July 2026 analysis, renting a starter home was cheaper than buying in all 50 of the country’s largest metro areas. The average difference was $858 per month, but renters in some markets saved well over $1,000. These 16 cities had some of the biggest gaps. (Realtor)
1. Austin, Texas
Median Rent: $1,378
Monthly Buy Cost: $3,295
Monthly Savings From Renting: $1,917
Austin has one of the most dramatic rent-versus-buy gaps in the country. Buying a starter home costs about 139% more per month than renting, making the Texas tech hub the strongest rent-favoring market in Realtor.com’s latest analysis. (Realtor)
2. Seattle, Washington
Median Rent: $1,890
Monthly Buy Cost: $3,851
Monthly Savings From Renting: $1,961
Despite Seattle’s high rents, buying requires nearly twice as much each month. The city’s expensive real estate and ownership costs continue to make renting significantly easier on monthly budgets. (Realtor)
3. Dallas, Texas
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Median Rent: $1,463
Monthly Buy Cost: $2,657
Monthly Savings From Renting: $1,194
Dallas renters can save nearly $1,200 each month compared with the estimated cost of buying a starter home. That’s an 81.6% premium for ownership. (Realtor)
4. Columbus, Ohio
Median Rent: $1,181
Monthly Buy Cost: $2,111
Monthly Savings From Renting: $930
Columbus may not have coastal-city home prices, but the rent-buy gap remains surprisingly large. Monthly ownership costs are nearly 79% higher than asking rents for smaller properties. (Realtor)
5. Nashville, Tennessee
Median Rent: $1,488
Monthly Buy Cost: $2,646
Monthly Savings From Renting: $1,158
Nashville’s rapid growth helped push housing prices higher over the past decade. Even after recent price declines, renters still save more than $1,100 per month compared with buying. (Realtor)
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6. Los Angeles, California
Median Rent: $2,787
Monthly Buy Cost: $4,836
Monthly Savings From Renting: $2,049
Los Angeles has the largest dollar savings on this list. Rent itself is expensive, but purchasing a starter home adds more than $2,000 to the estimated monthly housing bill. (Realtor)
7. San Antonio, Texas
Median Rent: $1,156
Monthly Buy Cost: $1,982
Monthly Savings From Renting: $826
San Antonio combines relatively low rents with a sizable ownership premium. Buying costs roughly 71.5% more each month based on Realtor.com’s comparison. (Realtor)
8. Oklahoma City, Oklahoma
Median Rent: $915
Monthly Buy Cost: $1,543
Monthly Savings From Renting: $628
Oklahoma City has the lowest median rent among the cities near the top of the rent-favoring rankings. Renting costs almost 69% less than the monthly expense associated with buying a starter home. (Realtor)
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9. Portland, Oregon
Median Rent: $915
Monthly Buy Cost: $1,543
Monthly Savings From Renting: $628
Oklahoma City has the lowest median rent among the cities near the top of the rent-favoring rankings. Renting costs almost 69% less than the monthly expense associated with buying a starter home. (Realtor)
10. San Diego, California
Median Rent: $2,677
Monthly Buy Cost: $4,365
Monthly Savings From Renting: $1,688
San Diego isn’t cheap for renters, but homeownership is considerably more expensive. The monthly gap approaches $1,700, before considering larger unexpected maintenance expenses. (Realtor)
11. Houston, Texas
Median Rent: $1,384
Monthly Buy Cost: $2,244
Monthly Savings From Renting: $860
Houston is the fourth Texas market on the list. Buyers face monthly costs roughly 62% higher than renters for comparable starter-home housing. (Realtor)
12. Denver, Colorado
Median Rent: $1,772
Monthly Buy Cost: $2,861
Monthly Savings From Renting: $1,089
Denver’s housing boom left a substantial gap between renting and buying. Renters currently save almost $1,100 per month compared with Realtor.com’s estimated ownership cost. (Realtor)
13. New York City Metro
Median Rent: $2,972
Monthly Buy Cost: $4,795
Monthly Savings From Renting: $1,823
Rent in the New York metro is famously expensive, but buying remains even harder on monthly finances. The difference between the two approaches exceeds $1,800 per month. (Realtor)
14. Boston, Massachusetts
Median Rent: $2,939
Monthly Buy Cost: $4,669
Monthly Savings From Renting: $1,730
Boston renters face some of the highest asking rents in the country, yet purchasing a starter home still costs about $1,730 more per month. (Realtor)
15. Raleigh, North Carolina
Median Rent: $1,443
Monthly Buy Cost: $2,289
Monthly Savings From Renting: $846
Raleigh’s popularity with new residents and employers has pushed housing demand higher. For now, renting remains nearly 59% cheaper than buying on a monthly basis. (Realtor)
16. Sacramento, California
Median Rent: $1,823
Monthly Buy Cost: $2,840
Monthly Savings From Renting: $1,017
Sacramento renters save just over $1,000 a month compared with the estimated cost of buying. The gap has narrowed, but ownership still requires significantly more cash each month. (Realtor)
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