Price-to-Rent Ratio: The Best U.S. Cities for Home Buyers and Renters (2024 Data)

By Jaime Dunaway-Seale Updated August 26, 2024

🔑 Is it better to rent or buy a home? 🔑

Monthly rent costs are cheaper than the monthly mortgage payment in 48 of the 50 most populous U.S. cities. Housing costs are more affordable than rent in only Cleveland and Pittsburgh.

When it comes to renting versus buying a home, buying has long been considered the superior option in the U.S.

The popular narrative portrays homeownership as an investment that grows in value over time, while 57% of Americans think renting is a waste of money — despite the fact that it provides a flexible and convenient way for many to put a roof over their heads.

With yearly price hikes, bad landlords, no tax benefits, and no way to build equity, renting can be terrible — but buying a house can be worse.

Homeownership is fraught with hidden expenses that can cost up to $18,000 a year on top of a mortgage. Plus, the average homeowner sacrifices nearly 600 hours — 25 days — of their free time each year to home maintenance and improvements.

It's no wonder 34% of homeowners say they'd be less stressed if they didn't own a home, and 28% would consider renting again.

With pros and cons to each option, there really is no universal answer to the rent-versus-buy question. Rather, it's best determined on an individual basis, taking into account factors such as lifestyle, income, and, of course, location.

This study aims to identify whether it's cheaper to rent or buy in the 50 most populous U.S. metros based on the price-to-rent ratio.

The price-to-rent ratio is calculated by dividing the median home price by the median annual rent. A ratio of 15 or less means it’s much better to buy, while a ratio of 21 or more means it’s much better to rent.

A price-to-rent ratio of 16 to 20 indicates it is typically better to rent, but the decision can depend on individual circumstances that a simple cost analysis can't easily address.

With the average home price increasing 39% faster than the average rent price across the U.S. since 2019, it makes more sense for many Americans to rent instead of buy, especially those in major cities. In fact, it is cheaper to buy a home in only 18 of the 50 most populous metros, based on the price-to-rent ratio.

Keep reading to find out if it's better to rent or buy in your city.

🏡 Renting vs. Buying Statistics

Across the country, the average home price has increased 39% more than the average rent price over the past five years and 72% faster in the past year.
Nationally, the price-to-rent ratio sits at 14.3 — up from 13 in 2019.
Among the 50 most populous metros, San Jose, California, has the highest price-to-rent ratio (37.6), while Cleveland has the lowest (11).
Based on the price-to-rent ratio, it is much better to rent in nine of the 50 largest metros.
San Jose has the highest typical home price at more than $1.5 million, making it the most recommended city to rent.
- However, San Jose also has the most expensive rent at $3,331 a month — 2.5x more than the $1,333 a month in Oklahoma City, the metro with the lowest rent.
Based on the price-to-rent ratio, it is cheaper to buy a home in only 18 of the 50 most populous metros.
Cleveland is the best city for buyers because it has the lowest price-to-rent ratio (11) and the lowest home prices ($187,413) among all 50 cities studied.
When not factoring in the price-to-rent ratio, monthly rent costs are cheaper than the monthly mortgage payment in 48 of the 50 most populous cities.
- Monthly housing costs are more affordable than rent in only Cleveland and Pittsburgh.
Nationally, renters save $289 more than homeowners each month.
It would take 171 months of rent — or a little over 14 years — to afford a home in the typical metro area.

Price-to-Rent Ratio Increases Over Time

With home prices rising 39% faster than rent prices over the past five years and 72% faster in the past year, it's no surprise the national price-to-rent ratio has increased overall.

Over the past five years, the price-to-rent ratio peaked at 15.1 in 2021, when rent prices continued to rise while home values ground to a halt as mortgage rates went up.

The current ratio has dipped to 14.3 nationally, but that's still up from 13 in 2019.

As the price-to-rent ratio increases, Americans are better off renting instead of buying a home — putting the American dream of homeownership further out of reach.

	Typical Home Price	Typical Rent	Price-to-Rent Ratio
Now	$347,092	$2,024	14.3
1 Year Ago (2023)	$327,410	$1,956	13.9
2 Years Ago (2022)	$333,102	$1,856	15.0
3 Years Ago (2021)	$290,901	$1,605	15.1
4 Years Ago (2020)	$251,049	$1,550	13.5
5 Years Ago (2019)	$233,390	$1,500	13.0

The 50 Most Populous Metros, Ranked by Price-to-Rent Ratio

Given that home prices and rent prices are both high, it can be difficult for Amerians to determine the most affordable living arrangement in their city without a cost analysis tool like the price-to-rent ratio.

In areas where the price-to-rent ratio is high, home prices are more expensive relative to annual rent prices, meaning it's better to rent than own. In areas where the price-to-rent ratio is low, annual rent prices are higher than home prices, meaning it's better to buy.

Among the 50 most populous U.S. metros, San Jose has the highest price-to-rent ratio at 37.6, while Cleveland has the lowest at 11.

Americans may find even cheaper housing costs in small towns, such as Bay City, Michigan, where the price-to-rent ratio is just 8.5. But that's not always the case. Among midsize cities, Moscow, Idaho, has the highest price-to-rent ratio at 36.8 — not far behind San Jose.

Rank	Metro	Price-to-Rent Ratio*	Typical Home Price	Typical Monthly Rent
1	Cleveland, OH	11.0	$187,413	$1,416
2	Pittsburgh, PA	11.9	$206,620	$1,451
3	Chicago, IL	12.1	$303,065	$2,090
4	New Orleans, LA	12.8	$258,196	$1,677
5	Memphis, TN	12.9	$226,295	$1,458
6	Birmingham, AL	13.2	$227,177	$1,437
7	Detroit, MI	13.6	$235,671	$1,447
8	St. Louis, MO	13.6	$230,271	$1,410
9	Cincinnati, OH	13.8	$250,405	$1,516
10	Indianapolis, IN	13.9	$263,696	$1,577
11	Miami, FL	14.0	$472,421	$2,803
12	Buffalo, NY	14.1	$231,596	$1,371
-	United States	14.3	$347,092	$2,024
13	Philadelphia, PA	14.4	$324,967	$1,884
14	Tampa, FL	14.4	$367,424	$2,123
15	Oklahoma City, OK	14.4	$230,721	$1,333
16	New York, NY	14.5	$579,117	$3,330
17	Louisville, KY	14.7	$250,108	$1,415
18	Hartford, CT	14.8	$323,663	$1,821
19	Columbus, OH	15.1	$276,763	$1,532
20	Atlanta, GA	15.6	$362,386	$1,941
21	Virginia Beach, VA	15.6	$322,239	$1,719
22	Orlando, FL	15.7	$387,967	$2,064
23	Baltimore, MD	15.9	$349,047	$1,831
24	Houston, TX	16.0	$329,032	$1,711
25	Jacksonville, FL	16.5	$347,834	$1,761
26	Kansas City, MO	16.6	$292,012	$1,470
27	Milwaukee, WI	16.8	$277,566	$1,374
28	San Antonio, TX	17.1	$307,470	$1,495
29	Charlotte, NC	17.4	$375,125	$1,795
30	Boston, MA	17.4	$648,108	$3,101
31	Providence, RI	17.5	$431,666	$2,056
32	Minneapolis, MN	17.5	$350,592	$1,669
33	Richmond, VA	17.7	$350,328	$1,645
34	Dallas, TX	18.0	$389,544	$1,802
35	Riverside, CA	18.2	$556,401	$2,544
36	Nashville, TN	18.6	$429,376	$1,920
37	Washington, DC	18.8	$537,361	$2,385
38	Las Vegas, NV	19.2	$416,903	$1,807
39	Phoenix, AZ	19.8	$448,280	$1,890
40	Raleigh, NC	20.1	$425,640	$1,766
41	Sacramento, CA	20.1	$554,354	$2,300
42	Austin, TX	21.0	$457,290	$1,819
43	Denver, CO	23.2	$573,090	$2,057
44	Portland, OR	24.1	$529,070	$1,831
45	San Diego, CA	24.1	$876,056	$3,024
46	Salt Lake City, UT	25.6	$525,768	$1,710
47	Seattle, WA	25.9	$692,195	$2,230
48	Los Angeles, CA	26.4	$925,783	$2,927
49	San Francisco, CA	30.7	$1,132,315	$3,071
50	San Jose, CA	37.6	$1,502,362	$3,331
*The price-to-rent ratio is calculated by dividing the median home price by the median annual rent. A price-to-rent ratio of 15 or less means it’s much better to buy, while a ratio of 21 or more means it’s much better to rent.

Best Cities for Renting

Renting is typically cheaper than buying across most of the United States, but it is much better to rent in nine of the 50 largest U.S. metros, according to the price-to-rent ratio.

In these cities, buying a home is so expensive that even the equity built through homeownership does not equal the money saved by renting.

Americans are much better off renting in major cities in the West, where high construction costs, confined building space, and the emergence of high-paying industries has led to a drastic increase in home values.

One of the most expensive cities is San Jose, which has the highest price-to-rent ratio in the U.S. at 37.6. With a typical home costing more than $1.5 million, most residents don't have any choice but to rent.

Although it's far easier to rent than buy in San Jose, that doesn't mean renting is easy. San Jose rent prices are still extremely high. In fact, it's the highest among all 50 cities studied.

The $3,331 that residents pay in rent per month in San Jose is 2.5x more than the $1,333 residents pay in Oklahoma City, the city with the lowest monthly rent price.

Of the cities with a price-to-rent ratio of 21 or higher, Salt Lake City has the lowest rent prices. Renters can expect to pay $1,710 a month — about half of what they'd pay in San Jose.

Rank	Metro	Price-to-Rent Ratio	Typical Home Price	Typical Rent per Month
1	San Jose, CA	37.6	$1,502,362	$3,331
2	San Francisco, CA	30.7	$1,132,315	$3,071
3	Los Angeles, CA	26.4	$925,783	$2,927
4	Seattle, WA	25.9	$692,195	$2,230
5	Salt Lake City, UT	25.6	$525,768	$1,710
6	San Diego, CA	24.1	$876,056	$3,024
7	Portland, OR	24.1	$529,070	$1,831
8	Denver, CO	23.2	$573,090	$2,057
9	Austin, TX	21.0	$457,290	$1,819

Best Cities for Buying a Home

High prices and interest rates can make buying a home feel impossible. Although affordable markets do still exist, they are few and far between. It is cheaper to buy a home in only 18 of the 50 most populous metros, based on the price-to-rent ratio.

Cleveland is the best city for those looking to buy a home. Not only does Cleveland have the lowest price-to-rent ratio of 11, it also has the lowest home prices among all 50 cities studied, with the median home costing $187,413.

Like Cleveland, cities in the Rust Belt make up almost half the list of affordable places to buy. The region was once a profitable manufacturing hub, but when the U.S. economy shifted to service-oriented industries and the factories closed, the population dwindled, contributing to a surplus of homes and, therefore, lower prices.

Many of the remaining cities that are best for buying can be found in the South, where there's plenty of land for development and less stringent building regulations that make it cheaper and easier to build new homes — contributing to lower housing costs.

Between these two regions, home shoppers will find 15 of the 18 most affordable places to buy a home in the U.S. In fact, all cities on this list — with the exception of Miami and New York — have home prices below the national median of $420,000.

With the median home costing $579,177, few home buyers would say purchasing a home in New York is affordable. But given that rent is $3,330 a month — the second highest amount among all cities studied — residents are actually better off splurging on a mortgage than paying rent.

Rank	Metro	Price-to-Rent Ratio	Typical Home Price	Typical Monthly Rent
1	Cleveland, OH	11.0	$187,413	$1,416
2	Pittsburgh, PA	11.9	$206,620	$1,451
3	Chicago, IL	12.1	$303,065	$2,090
4	New Orleans, LA	12.8	$258,196	$1,677
5	Memphis, TN	12.9	$226,295	$1,458
6	Birmingham, AL	13.2	$227,177	$1,437
7	Detroit, MI	13.6	$235,671	$1,447
8	St. Louis, MO	13.6	$230,271	$1,410
9	Cincinnati, OH	13.8	$250,405	$1,516
10	Indianapolis, IN	13.9	$263,696	$1,577
11	Miami, FL	14.0	$472,421	$2,803
12	Buffalo, NY	14.1	$231,596	$1,371
13	Philadelphia, PA	14.4	$324,967	$1,884
14	Tampa, FL	14.4	$367,424	$2,123
15	Oklahoma City, OK	14.4	$230,721	$1,333
16	New York, NY	14.5	$579,117	$3,330
17	Louisville, KY	14.7	$250,108	$1,415
18	Hartford, CT	14.8	$323,663	$1,821

Unfortunately, buying a home is just the start of what many homeowners will spend to maintain and improve their property. However, home value growth — as well as the equity built through each principal payment — makes it still worthwhile to buy a home in these 18 metros.

Rent vs. Mortgage Payment Costs Make Homes Affordable in Only Two Major Metro Areas

The price-to-rent ratio can be helpful in determining whether it's cheaper to rent or buy, but it doesn't take into account additional costs that may make a monthly mortgage payment more than a monthly rent payment.

When taking into account the full cost of homeownership — including principal, interest, taxes, and homeowners insurance — it is cheaper per month to buy in only two of the 50 most populous metros: Cleveland and Pittsburgh.

Cleveland homeowners experience the most savings, with the monthly mortgage payment costing about $96 less than the monthly rent payment. However, those savings add up to just $1,152 a year.

Pittsburgh homeowners save even less — just $24 a month or $288 a year.

With neither option resulting in significant savings, the decision to rent or buy in those cities could be a difficult one for undecided Americans.

Nationally, the choice is often more clear. It is cheaper to rent in 48 of the 50 most populous metros, with renters saving $289 more per month — or $3,468 more per year — than homeowners.

Renters can net even more savings in places with exorbitant home costs. It's no coincidence that in the four cities with the highest home prices — San Jose, San Francisco, Los Angeles, and San Diego — residents can save the most money by renting.

By forgoing homeownership in notoriously expensive California, residents can save:

$5,598 a month in San Jose
$3,685 a month in San Francisco
$2,615 a month in Los Angeles
$2,226 a month in San Diego

Rank	Metro	Typical Monthly House Payment (PITI, 20% Down)*	Typical Monthly Rent Payment + Insurance	Monthly Difference **	Annual Difference **
1	Cleveland, OH	$1,331	$1,426	-$96	-$1,152
2	Pittsburgh, PA	$1,437	$1,461	-$24	-$288
3	Memphis, TN	$1,515	$1,471	$43	$516
4	Birmingham, AL	$1,497	$1,452	$45	$540
5	Indianapolis, IN	$1,706	$1,589	$117	$1,404
6	New Orleans, LA	$1,831	$1,698	$133	$1,596
7	St. Louis, MO	$1,574	$1,424	$150	$1,800
8	Chicago, IL	$2,298	$2,102	$195	$2,340
9	Detroit, MI	$1,659	$1,458	$200	$2,400
10	Cincinnati, OH	$1,745	$1,526	$219	$2,628
11	Buffalo, NY	$1,626	$1,385	$242	$2,904
-	United States	$2,325	$2,036	$289	$3,468
12	Philadelphia, PA	$2,205	$1,894	$310	$3,720
13	Louisville, KY	$1,744	$1,427	$317	$3,804
14	Virginia Beach, VA	$2,050	$1,729	$320	$3,840
15	Columbus, OH	$1,918	$1,542	$376	$4,512
16	Atlanta, GA	$2,341	$1,957	$384	$4,608
17	Baltimore, MD	$2,264	$1,844	$420	$5,040
18	Oklahoma City, OK	$1,774	$1,351	$423	$5,076
19	Kansas City, MO	$1,950	$1,484	$466	$5,592
20	Miami, FL	$3,298	$2,816	$483	$5,796
21	Hartford, CT	$2,321	$1,834	$487	$5,844
22	New York, NY	$3,856	$3,344	$512	$6,144
23	Tampa, FL	$2,668	$2,136	$531	$6,372
24	Milwaukee, WI	$1,925	$1,383	$542	$6,504
25	Richmond, VA	$2,217	$1,655	$563	$6,756
26	Charlotte, NC	$2,433	$1,809	$623	$7,476
27	Las Vegas, NV	$2,488	$1,820	$668	$8,016
28	Minneapolis, MN	$2,365	$1,679	$686	$8,232
29	Orlando, FL	$2,791	$2,077	$714	$8,568
30	Nashville, TN	$2,694	$1,933	$761	$9,132
31	Houston, TX	$2,498	$1,725	$773	$9,276
32	Jacksonville, FL	$2,550	$1,774	$776	$9,312
33	Washington, DC	$3,212	$2,398	$815	$9,780
34	Riverside, CA	$3,388	$2,559	$829	$9,948
35	San Antonio, TX	$2,355	$1,509	$846	$10,152
36	Phoenix, AZ	$2,755	$1,904	$851	$10,212
37	Providence, RI	$2,932	$2,068	$864	$10,368
38	Raleigh, NC	$2,732	$1,780	$952	$11,424
39	Boston, MA	$4,152	$3,113	$1,039	$12,468
40	Sacramento, CA	$3,376	$2,315	$1,062	$12,744
41	Dallas, TX	$2,900	$1,816	$1,084	$13,008
42	Salt Lake City, UT	$3,107	$1,721	$1,385	$16,620
43	Portland, OR	$3,268	$1,843	$1,426	$17,112
44	Denver, CO	$3,530	$2,068	$1,462	$17,544
45	Austin, TX	$3,351	$1,833	$1,518	$18,216
46	Seattle, WA	$4,245	$2,241	$2,005	$24,060
47	San Diego, CA	$5,266	$3,039	$2,226	$26,712
48	Los Angeles, CA	$5,558	$2,942	$2,615	$31,380
49	San Francisco, CA	$6,770	$3,086	$3,685	$44,220
50	San Jose, CA	$8,943	$3,346	$5,598	$67,176
Includes principal, interest, taxes, and insurance *Rounded to the nearest dollar

Months of Rent Needed to Buy a Home by Metro

Renting is more affordable than buying across most of the United States, but that doesn't mean renting is cheap. Rent has increased 35% over the past five years, making it more difficult to set aside additional funds for a home purchase.

Nationally, it would take 171 months of rent — or a little over 14 years — to purchase a home outright in one of the 50 most populous metro areas.

Renters could purchase a home the fastest in Cleveland thanks to home values that are well below the national median. Residents could save for a 20% down payment of $37,500 on the typical $187,413 home with just 26 months, or two years, worth of rent. They could purchase the home outright with 132 months of rent, or 11 years.

On the other hand, it would take the most amount of time to save for a home in San Jose. Residents would need to save 90 months of rent, or 7.5 years, to simply afford the 20% down payment of nearly $300,500.

To pay for the entire $1.5 million home in San Jose, residents would need 451 months of rent, or nearly 38 years. With the average home loan spanning 30 years, San Jose renters would need almost an extra decade worth of rent at the current price to pay off the principal amount on their home.

Rank	Metro	Typical Home Price	Typical Rent	Months of Rent to Buy a Home
1	Cleveland, OH	$187,413	$1,416	132
2	Pittsburgh, PA	$206,620	$1,451	142
3	Chicago, IL	$303,065	$2,090	145
4	New Orleans, LA	$258,196	$1,677	154
5	Memphis, TN	$226,295	$1,458	155
6	Birmingham, AL	$227,177	$1,437	158
7	Detroit, MI	$235,671	$1,447	163
8	St. Louis, MO	$230,271	$1,410	163
9	Cincinnati, OH	$250,405	$1,516	165
10	Indianapolis, IN	$263,696	$1,577	167
11	Miami, FL	$472,421	$2,803	169
12	Buffalo, NY	$231,596	$1,371	169
-	United States	$347,092	$2,024	171
13	Philadelphia, PA	$324,967	$1,884	172
14	Tampa, FL	$367,424	$2,123	173
15	Oklahoma City, OK	$230,721	$1,333	173
16	New York, NY	$579,117	$3,330	174
17	Louisville, KY	$250,108	$1,415	177
18	Hartford, CT	$323,663	$1,821	178
19	Columbus, OH	$276,763	$1,532	181
20	Atlanta, GA	$362,386	$1,941	187
21	Virginia Beach, VA	$322,239	$1,719	187
22	Orlando, FL	$387,967	$2,064	188
23	Baltimore, MD	$349,047	$1,831	191
24	Houston, TX	$329,032	$1,711	192
25	Jacksonville, FL	$347,834	$1,761	198
26	Kansas City, MO	$292,012	$1,470	199
27	Milwaukee, WI	$277,566	$1,374	202
28	San Antonio, TX	$307,470	$1,495	206
29	Charlotte, NC	$375,125	$1,795	209
30	Boston, MA	$648,108	$3,101	209
31	Providence, RI	$431,666	$2,056	210
32	Minneapolis, MN	$350,592	$1,669	210
33	Richmond, VA	$350,328	$1,645	213
34	Dallas, TX	$389,544	$1,802	216
35	Riverside, CA	$556,401	$2,544	219
36	Nashville, TN	$429,376	$1,920	224
37	Washington, DC	$537,361	$2,385	225
38	Las Vegas, NV	$416,903	$1,807	231
39	Phoenix, AZ	$448,280	$1,890	237
40	Raleigh, NC	$425,640	$1,766	241
41	Sacramento, CA	$554,354	$2,300	241
42	Austin, TX	$457,290	$1,819	251
43	Denver, CO	$573,090	$2,057	279
44	Portland, OR	$529,070	$1,831	289
45	San Diego, CA	$876,056	$3,024	290
46	Salt Lake City, UT	$525,768	$1,710	307
47	Seattle, WA	$692,195	$2,230	310
48	Los Angeles, CA	$925,783	$2,927	316
49	San Francisco, CA	$1,132,315	$3,071	369
50	San Jose, CA	$1,502,362	$3,331	451

Methodology

Data for this analysis was retrieved from the U.S. Census Bureau, Zillow, Bankrate, Rocket Mortgage, the Tax Foundation, Business Insider, Freddie Mac, and the Federal Reserve.

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FAQs

What is a price-to-rent ratio?

The price-to-rent ratio is calculated by dividing the median home price by the median annual rent. A ratio of 15 or less means it’s much better to buy, while a ratio of 21 or more means it’s much better to rent. Learn more.

Where are the best cities for buying a home?

Cleveland is the best city for those looking to buy a home. Not only does it have the lowest price-to-rent ratio of 11, it also has the lowest home prices among the 50 most populous U.S. cities studied, with the median home costing $187,413. Learn more.

Where are the best cities for renting?

Americans are better off renting in San Jose, which has the highest price-to-rent ratio in the U.S. at 37.6. But San Jose rent prices are still extremely high. The $3,331 that residents pay per month is the highest among all cities studied. Learn more.

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