A new report shows owning a home in the United States is still more affordable than renting certain properties in the majority of markets, but both are financially burdening, and in some cases, rental prices are outpacing shifts in median home prices.
ATTOM Data’s new 2025 Rental Affordability Report released this week shows both owning and renting remain expensive for the average American worker, commonly consuming up 25 to 60% of the average worker’s earnings. But for nearly 60% of the 341 county-level markets with enough data to analyze, major ownership expenses required a smaller percentage of average wages than renting a three-bedroom home would, an inversion of what’s classically considered most affordable.
The report found that owning is more affordable–with the major caveat being only for those that can put together a down payment–than renting, in spite of median home prices rising faster than average rents.
“Buying or renting a home in the U.S. these days can be like searching for a diamond in a pile of marbles, and it’s only getting worse in most markets as the cost of both goes up,” said Rob Barber, ATTOM CEO. “However, in most parts of the country, homeownership is somewhat more attainable for those who can gather the necessary resources to cover down payments that often surpass $200,000.”
Median home price grew at a faster rate than did average rental price in 66% (225) of the 341 counties surveyed, which were at least 100,000 people or more. The most populous among these counties were: Los Angeles County, California; Cook County, Chicago; Maricopa County (Phoenix), Arizona; San Diego County, California and Orange County, California.
On the flipside of the coin, among markets where changes in rents have outstripped median home price gains, the largest were Harris County (Houston), Texas; Tarrant County (Fort Worth), Texas; Bexar County (San Antonio), Texas; Suffolk County, New York and Franklin County (Columbus), Ohio.
ATTOM’s report showed that among 80% of counties surveyed in the Midwest and 60% of those analyzed in the South, owning a home required a smaller portion of wages than renting did. The Northeast was a coin flip, with 50% of counties analyzed showing home ownership more viable than renting. The West was the geographical outlier, showing that 80% of counties are more affordable to rent in.
The counties with the greatest gap in affordability between home ownership and renting were: Suffolk County, New York (major home ownership expenses purchased in 2024 accounted to consume 59% of average local wages, vs. 159% for the average three bedroom rental home); Atlantic County (Atlantic City), New Jersey (48% for owners against 111% for renters); Collier County (Naples), Florida (79% against 127%); Indian River County (Vero Beach), Florida (47% vs. 83%) and Charlotte County, Florida (43% to 69%).
On the other hand, the largest affordability gaps in favor of the rental market were located in: Alameda County (Oakland), California (2024 rental costs for a three bedroom home took 48% of average local wages while major home ownership expenses in 2024 took 87%), Honolulu County, Hawaii (64% for renters, 103% for owners), San Mateo County, California (31% against 69%), San Clara County (San Jose), California (27% to 64%) and Loudoun County, Virginia (45% vs. 81%).
The report also came equipped with a heat map that showed suggested “Buy or rent” areas scattered throughout the country that aligned with ATTOM’s analysis. Buying a residence versus renting a house was most affordable in the Midwestern region, followed by the South and then the Northeast. The heat map showed very few favorable buying markets in the West.
The report shows that major homeownership expenses total more than one third of the average local wage in 231 of 341 counties analyzed (68%). This pattern didn’t exceed roughly 25% of Midwestern Markets, but other regions required more than one third average local wages for 66 to 98% of local county markets, showing fairly drastic variation regionally in the country.
The most affordable counties for homeownership (assuming one is able to put together a 20% down payment first) were clustered in Alabama and the Midwestern region, with Jefferson County (Birmingham), Alabama first (15% of average local wages needed for major homeownership expenses for year 2024), followed by Wayne County (Detroit), Michigan (15%), Peoria County, Illinois (15%), Montgomery County, Alabama (16%) and Mobile County, Alabama (17%).
On the contrary, the least affordable counties for home owning are: Orange County, California (110% of average local wages requited to pay for homeownership expenses in 2024), Kings County (Brooklyn), New York (106%), Honolulu County, Florida (103%), San Luis Obispo County, California (100%) and Monterey County, California (99%).
On the flipside of the rental-ownership equation, the report showed that the average three bedroom rents require more than one third of average local wages in 260 of the 341 counties analyzed. The Midwest again clocked in as the most affordable market, with a majority of markets in the region falling beneath the one third wage threshold.
By county, the most affordable markets for renting are: Black Hawk County (Waterloo), Iowa (20% of average local wages needed to afford three bedroom rental), Wayne County (Detroit), Michigan (22%), Genesee County (Flint), Michigan (23%), Jefferson County (Birmingham), Alabama (23%) and Hinds County (Jackson), Mississippi (23%).
The least affordable markets for renters were: Suffolk County, New York (159% average local wages needed to rent), Collier County (Naples), Florida (127%), Atlantic County (Atlantic City), New Jersey (111%), Santa Barbara County, California (107%) and Riverside County, California (91%).
Barber added that “the current situation is tenuous, especially if mortgage rates keep going back up like they have in the past couple of months. But for now, homeownership is the more viable choice.”
For the full report, click here.
