Is Buying Still Cheaper Than Renting? Just One Metro Calls “Yes”—For Now
As of mid-2025, homeownership has become less financially attractive in nearly every major U.S. metro—but one exception stands out: Pittsburgh. Let’s unpack the key data, benefits, and caveats:
Pittsburgh: The Lone Exception
According to Realtor.com, as of June 2025, purchasing a starter home in Pittsburgh costs about $111 less per month than renting the same type of property in the metro area. [Bankrate]
Realtor.com and Realtor.com® also noted earlier in 2025 that only Pittsburgh (alongside Detroit) remained where buying was cheaper—though in Detroit, the margin is narrower .
So why Pittsburgh? It’s a combination of modest home prices (~$230 k median) and stable rents, producing a rare scenario where mortgage payments undercut rent.
National Trend: Renting Takes the Lead
Bankrate reports that in all 50 largest U.S. metros in 2025, renting is cheaper than buying—by an average of 38% per month [Bankrate]
Major coastal tech hubs like San Francisco and San Jose saw mortgages costing nearly 200% more than rent T[Bankrate]
Mortgage Benefits at Lower Rates
Historically, when rates were in the low 3–4% range (pre-2022), monthly mortgage payments often fell below rents in many areas. That dynamic clearly demonstrated:
Lower monthly outlay compared to renting.
Forced savings through principal payments—effectively building equity.
Tax advantages, including mortgage interest and property tax deductions (for those who itemize).
Long-term wealth growth, with home appreciation boosting net worth over time.
Why Buying Doesn’t Automatically Win
That favorable math relies on several assumptions:
Interest Rates - Higher rates (currently 6–7%) push up mortgage costs dramatically.
Home Prices - Elevated home values reduce affordability.
Stability Assumed - This scenario assumes rates remain stable—rising rates can quickly upend the equation.
If mortgage rates fall in the months ahead—say back to 4–5%—buying could become much more advantageous, shifting the balance in more metros.
Wealth Through Equity—Still a Key Advantage
Even when buying costs more than renting, it’s not a wash:
Equity builds automatically: Every mortgage payment pays down principal.
Home values generally rise: First American estimates homeowners who bought 10 years ago built nearly $225,000 in wealth, while renters lost about $148,000 [KEY, The Guardian, Mortgage Professional]
Inflation hedge: Fixed mortgage payments become “cheaper” over time.
Future cost certainty: Stable mortgage vs. potentially rising rent.
Pros & Cons of Buying vs. Renting Today
Buying (when cheaper than renting):
Pros: Lower monthly payment (Pittsburgh TV), equity accumulation, tax write-offs, long-term cost predictability.
Cons: High upfront costs (down payment, closing), ongoing maintenance, less mobility.
Buying (when more expensive):
Pros: Equity-building, asset growth, stability, potential future refinance upside.
Cons: Higher monthly cost, vulnerability to rate hikes, maintenance expenses.
Renting:
Pros: Flexibility to move, no maintenance responsibility, lower cash required.
Cons: No equity, potential rent inflation, no tax perks, no forced savings.
What Matters Most: Your Situation & Outlook
Short-term stayers may be better off renting in most metros—costs are lower and flexibility higher.
Long-term residents in affordable metros (like Pittsburgh) can lock in low housing costs and build equity.
Speculators on lower rates might choose to buy now expecting refinancing opportunities later.
Bottom Line
Right now, Pittsburgh stands alone as the only metro where buying is clearly cheaper than renting—but this relies on current rates and market conditions. For most Americans, especially those living in expensive metros, renting remains the more affordable option—though they miss out on equity growth.
That said, homeownership still offers unique wealth-building advantages long term, particularly if mortgage rates decline and you plan to stay put for several years. The right decision depends on your rate outlook, how long you’ll stay, and your financial flexibility.
