Renting Remains More Affordable Than Buying Across Major U.S. Metros in 2025

Recent data from Bankrate’s Rent vs. Buy Study reveals that renting remains more affordable than buying a home across all 50 of the largest U.S. metropolitan areas. The study highlights a growing cost gap, with mortgage payments averaging 38% higher than rental costs nationally. This gap has widened in 38 metros since last year, reflecting ongoing affordability challenges for potential homeowners. Mortgage payments factored in principal, interest, property taxes, and homeowners insurance costs, providing a comprehensive view of homeownership expenses.

Mortgage payments for median-priced homes increased by 2.4%, from $2,703 in 2024 to $2,768 in 2025, while average rental prices decreased slightly by 1.7% when adjusted for inflation, averaging $2,000 monthly. This divergence underscores persistent barriers to homeownership driven by higher financing costs and ownership-related expenses.

In metropolitan areas like New York-Newark-Jersey City, the buy-rent cost disparity is especially pronounced at 52.6%, with mortgage payments nearly $1,700 more monthly than rents. Contrastingly, in the Philadelphia-Camden-Wilmington metro, the gap is narrower at 11.5%. These regional differences illustrate how local housing markets and associated costs impact affordability dynamics.

The study also notes that the national average interest rate for a 30-year fixed mortgage stands at 6.90%, down from a peak of 7.79% in late 2023 but significantly higher than the 4.72% rate seen in early 2022. Rising mortgage rates, combined with elevated home prices, property taxes, and insurance premiums, continue to price many Americans out of homeownership.

Geographically, the widest cost gaps between renting and buying are concentrated in Western U.S. metros, regions characterized by higher home prices and overall living costs. Conversely, smaller disparities are typically found in the South and Midwest, suggesting regional market variations influence the financial calculus faced by renters and buyers nationwide.