Renting’s Edge Over Buying Is Shrinking as These 7 Markets Turn Buyer-Friendly

Renting a starter home is still cheaper than buying one in all of the nation’s 50 largest metropolitan areas—but that advantage is beginning to shrink.In July, buying a starter home cost $858 more per month than renting one, according to the July 2026 Rental Report from Realtor.com®. But in Orlando, FL, that premium was just $19.Jiayi Xu, a senior economist at Realtor.com and author of the report, says it comes down to a favorable mix of cooling home prices and rising wages.“Together, these trends point to a picture that increasingly favors buying,” she says. “Home prices are falling faster than rents, while rising incomes are putting prospective buyers in a stronger position.”And for the first time since 2023, a majority of Americans (53%) favor buying over renting or living with family, according to a recent survey from Bank of America.“Renting may be cheaper today, but that doesn't mean the opportunity to buy is closing or getting worse," Xu explains. "In many places, it is improving when compared to renting.”Why buying is starting to gain groundMost of the movement has come from the ownership side of the equation.For one, home prices are falling faster than rents. The median li...