Rent vs. Buy: Is Renting Cheaper Than Buying a Home Right Now?
Renting remains more economical than buying a home, as a surge in new supply continues to drive prices down across the country.
“Rent continues to fall in many of the major metros across the United States for a variety of reasons,” explains Joel Berner, a senior economist at Realtor.com®.
“The biggest one is that rent is still correcting itself from the dramatic run-up of 2021 and 2022, when several years' worth of rent gains were seen over the span of a few months.”
With that said, seasonal changes always have an impact and in the summer months, there’s always a tick up in rent rates. Here's how they compare to mortgages.
Why is renting cheaper than buying?
In June 2026, the national median asking rent across the top 50 metro areas fell to $1,692, according to Realtor.com's latest rent report.
This represents a 1.5% decline (or a drop of $25) compared to the prior year, marking the 35th consecutive month of year-over-year rent decreases for properties with up to two bedrooms.
While renting remains the more economical option nationally, the price floor remains elevated. This month's median rent is $72 (-4.1%) lower than its summer 2022 peak, but it is still $238 (16.4%) higher than the pre-pandemic levels recorded in June 2019.
Despite remaining higher than seven years ago, this persistent softness in the rental market is increasingly translating into real savings for renters navigating a housing market that once felt completely out of reach.
National median asking rent by unit size
Every unit size category saw rental price declines in June 2026, showing that the downward trend is consistent across different layouts.
Rents on studio units saw the largest drop, falling 2.2% year over year to a median of $1,422. This represents a $32 decline over the past year and the 34th consecutive month of annual drops. The median rent for studios is now $64 (-4.3%) lower than its October 2022 peak.
Meanwhile, one- and two-bedroom units saw matching 1.4% year-over-year decreases, representing their 37th consecutive month of annual declines. The national median for a one-bedroom unit slipped to $1,579 (down $22), which is $82 (-4.9%) lower than its August 2022 peak. Two-bedroom units dropped to $1,893 (down $27), sitting $75 (-3.8%) below their July 2022 peak.
Rent regulations vs. rent construction
A key factor in the long-term affordability of renting versus buying is the local housing supply pipeline. There is currently a nationwide tension between enacting rent regulations and expanding construction.
While tenant protections like rent freezes or rent controls can shield existing renters, they do not directly expand supply or broadly lower market rents.
On a national level, multifamily permit activity in 2025 rose slightly to 302,730 units (a 1.9% increase from 2024), but it remains 13.1% below 2019 levels and 34.4% below the 2022 peak. This retreat raises concerns about the longevity of the current rent relief trend, as a permitting pipeline below pandemic levels suggests the supply progress driving rents down may not last much longer.
Some markets, like New York and Boston, are seeing their lowest permit rates since 2019, while others, like Columbus, OH, and various Florida metros, are seeing the sharpest gains in new permits, pointing to highly localized dynamics for future affordability.
Mortgage vs. rent calculator
If you’re still renting but looking to buy a home, a good place to start evaluating your finances is by using a mortgage vs. rent calculator.
The tool will allow you to compare your current rent versus what you have saved for a down payment and what your mortgage payments would be.
"By offering personalized insights, the calculator empowers consumers to evaluate not only the best option for their current situation but also how the decision could impact their finances in the years to come," says Realtor.com economist Jiayi Xu.
By comparison to rents, the average rate on 30-year fixed home loans rose to 6.49% for the week ending July 9, up 6 basis points from 6.43% the previous week, according to Freddie Mac. For perspective, rates averaged 6.72% during the same period in 2025.
U.S. monthly rental reports 2026
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