Renting Becomes More Economical Option Over Buying in Nearly All Major Markets
When considering the choice between renting and buying today, the housing market balance continues to tip in favor of renters amid an uptick in multifamily construction, reveals Realtor.com’s September Rental Report.
Meanwhile, compared with pre-pandemic years, faster absorption rates of newly constructed apartments within the first three months after completion signal strong renter demand, particularly for lower-priced units.
"As rents ease and both home prices and mortgage rates continue to climb, it's become more economical to rent than to buy in nearly all major markets," says Danielle Hale, chief economist at Realtor.com. "However, even with an influx of new apartment units coming onto the market and putting a lid on rent growth, renters are claiming these new apartments faster than prior to the pandemic."
In September, median asking rents in the 50 largest metros dropped to $1,747, down $29 from the peak seen in July 2022.