Rent vs. Buy: Is Renting Cheaper Than Buying a Home?

Renting remains more economical than buying a home as a surge in new supply continues to drive prices down across the United States. Joel Berner, a senior economist at Realtor.com®, explained that rents are correcting from a dramatic run-up in 2021 and 2022. While rents typically increase seasonally approaching summer, Realtor.com economist Jiayi Xu anticipates continued year-over-year declines in 2026 due to a significant increase in multifamily construction over the past few years. May 2026 marks the 34th consecutive month of year-over-year price declines for properties with up to two bedrooms. The national median asking rent across the 50 largest metro areas fell to $1,686, a 4.4% decrease from its summer 2022 peak. This softness in the rental market provides savings for tenants, contrasting with the fluctuating mortgage rates that influence home buying costs. The rental housing stock is projected to increase to over 50.5 million units by early 2027, exceeding pre-pandemic levels. In May 2026, two-bedroom units saw a 1.5% year-over-year drop to a median rent of $1,885, one-bedroom units declined 1.5% to $1,573, and studio apartments decreased 1.9% to $1,422.