A new report from Realtor.com shows just how wide the gap is between being able to afford payments on a home mortgage compared to monthly rents – and how far the dream of homeownership is slipping away from many households.

Using a yardstick of 30% of income as the definition of affordable housing payments, the report found five of 50 metros studied where neither renting nor buying was affordable in January 2025: Miami, New York City, Los Angeles, Boston and San Diego. This was true even though in both Los Angeles and San Diego rents had slipped year-over-year.

In January 2024, there were six metros where buying was less expensive than renting. This year, the number fell to just two: Detroit and Pittsburgh, with monthly mortgage payments of $1,119 and $1,252 respectively.

“The consistent retreat of rental prices and the persistence of high mortgage rates over the past year have moved the market as a whole in a more renter-friendly direction,” the report stated. It noted that in metros where incomes have risen, home affordability may have improved – a trend that may be offset by rising interest rates even with higher incomes and falling home listing prices.

In 18 markets, the share of household income needed to buy a home has risen compared to last year. In 15 metros, the percentage of income spent on rent fell while the percentage spent on buying rose year-over-year. Most markets fell into a group where the amount of income needed for rent or to buy a house was falling.

Metros where the bite out of income for mortgage payments exceeded 30% included Austin (30.3%), Boston (45.8%), Charlotte (32.3%), Denver (33.4%), Las Vegas (40.4%), Los Angeles (74.7%), Memphis (30.8%), Miami (43.9%), Milwaukee (30.6%), Nashville (38.6%), New York (49.5%), Orlando (35.1%), Phoenix (36.6%), Portland (39.6%), Richmond (30.2%), Riverside (43.6%), Sacramento (41.1%), San Diego (57.7%), San Francisco (41.4%), San Jose (50.7%), Seattle (40.1%), Tampa (34%), and Virginia Beach (30.4%).

Median rents for 0-2 bedroom apartments in these metros vary from $3,287 a month in San Jose to $1,481 in Richmond.

Instant Insights /

Only Two Metros Where Buying Is Cheaper Than Renting

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