Here's Why Renting Is Cheaper Than Buying

House prices have risen so much over the past year that they are now cheaper than renting in many countries.

That's according to an analysis Thursday by real estate data company Attom Data. The analysis found that in 95% of America's most populous counties, renting a three-bedroom home required less income than buying one.

Renting surpassed buying as the more affordable option this year: When Attom did the same analysis in 2022, buying was cheaper in 60% of states. The map below shows where it's cheaper to buy or rent and how much your housing costs will be on a typical salary.

“What a difference a year makes,” ATTOM executive vice president of market intelligence Rick Sharga said in a press release.

Attom analyzed the trends using its own data on rents and home prices, and used data from the Bureau of Labor Statistics to calculate how much housing costs would take away from income in each county.

Mortgage rates – more than doubled in 2022 – combined with home prices to buy a home. Rents also rose last year, according to Attom data, but not enough to offset the double squeeze of rates and prices.

The calculus could soon change, as the housing market winds have shifted again in recent months, and both are heading south.

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