Affordability constraints on the housing market in recent years have left more people turning to renting than ever before. But while high expectations abound for market normalization in 2026, the latest data from ATTOM already seems to show that owning a home is becoming more affordable than renting a three-bedroom property across the country.
ATTOM’s 2026 Rental Affordability Report found that the costs of homeownership consumed less of residents’ income than renting in 57.7% (210) of the 364 counties with sufficient data to analyze. Homeownership expenses consumed more than a third of the typical resident’s wages in 65.7% (239) of the 364 counties analyzed.
The Midwest and the South in specific are seeing more affordability in homeowning rather than renting. In fact, it was more affordable to buy than rent in 81.5% of counties in the Midwest, and 66.3% of counties in the South.
The most affordable counties to own a home supported this trend. Assuming a 20% down payment on purchase, the most affordable counties were Peoria County, Illinois (owning consumed 14.5% of typical income); Wayne County, Michigan (14.9%); Mobile County, Alabama (15.1%); Jefferson County, Alabama (16.3%); and Montgomery County, Alabama (16.7%).
The Northeast remains more challenged, but still had a decent 48.8% of counties being more affordable to buy. The West faces the worst gap, as it was only more affordable to buy in 16.9% of counties there.
Wages have also been growing, outpacing both rental and owning affordability. Average wages increased more (or declined less) than rent for three-bedroom properties in 76.1% (277) of the 364 counties, and increased more (or declined less) than median home prices in 59.1% (215) of the 364 counties.
In terms of rental affordability, renting a three-bedroom property consumed more than a third of a typical resident’s income in 76.9% (280) of the 364 counties analyzed. That was 95.4% of counties in the West, 90.7% of counties in the Northeast, 77.7% of counties in the South and 40.7% of counties in the Midwest.
Despite an increase in affordability for homeownership costs, there is still a barrier to entry in the market in the form of high home prices. ATTOM found that in more than two thirds of counties analyzed (69%, or 251 of the 364 counties), median home prices rose faster than rents in 2025.
“Renters looking to put down roots, young families who need more space, professionals relocating for work, and many others are facing a very tough choice,” said ATTOM CEO Rob Barber. “The data shows that buying is typically the most affordable long-term option, but as the housing market sets new record-high prices quarter after quarter, affording the initial investment becomes increasingly challenging.”
However, recent data from Case-Shiller and the FHFA House Price Index have both shown a deceleration in home-price growth, hopefully leading to more normalization soon.
