Is Renting Still Cheaper Than Buying in Most U.S. Cities Right Now?

Short answer: Yes — in 2025 renting is still cheaper than buying in the majority of U.S. metros, though the gap and the right decision for you depend on where you live, how long you’ll stay, and your financial picture. Below I explain the data, the math, and what this means for buyers and renters — with practical takeaways for people in Central Oregon (Bend / Redmond / Prineville) too.

The big picture (what the recent studies say)

• Multiple 2025 analyses show renting is cheaper than buying in most large metros. Bankrate and Realtor.com found that buying currently costs more per month than renting in nearly all major U.S. metro areas, with the average mortgage payment running hundreds of dollars higher than average rent in many markets.

• Rents and home prices move differently by city. Nationwide rent indexes (Zillow’s ZORI) show rents are flattening or modestly up in 2025, while mortgage payments remain elevated because of higher interest rates — that’s a major reason renting looks cheaper on a monthly-cash-flow basis.

Why renting looks cheaper right now (the short math)

1. Mortgage rate impact — Even if home prices cooled in some places, mortgage rates (mid-2025) are considerably higher than the pandemic low. That pushes monthly principal+interest way up.

2. Upfront and ongoing ownership costs — Buying includes down payment, closing costs, property taxes, insurance, maintenance, HOA fees — all of which can make monthly ownership far more expensive than just paying rent.

3. Local rent supply — Multifamily construction over the last couple years has increased rental supply in many metros, softening rent growth and making renting relatively attractive.

(Those three forces — rates, ownership expenses, and rental supply — are the core reason the recent reports conclude renting is less expensive month-to-month in most places.)

But the answer isn’t only “rent = better” — context matters

Here are the key factors that change the right decision from person to person:

Time horizon (how long you’ll stay)

• If you plan to stay 5–7+ years, buying can make financial sense because you build equity, can amortize closing costs, and benefit from appreciation (if the market cooperates). Break-even windows vary by market and depend heavily on appreciation and transaction costs. Tools like Zillow’s rent-vs-buy calculator help run scenarios.

Local market quirks

• Some smaller or lower-cost cities still favor buying. Analyses show a handful of markets (mostly Rust Belt cities with low home prices) are cheaper to buy than rent. Always check local reports rather than relying on national headlines.

Non-financial goals

• Want a yard, a pet-friendly place, control over renovations, or predictable long-term housing? Those lifestyle needs can justify buying even when the monthly math favors renting.

Opportunity cost of the down payment

• Could the down payment earn more invested elsewhere? That matters — especially when the monthly saving from owning is negative. Compare likely investment returns vs. expected home-equity gains.

Central Oregon (Bend, Redmond, Prineville): What to watch

• Bend: Higher home values make monthly ownership expensive for many buyers — renting often looks cheaper on a monthly basis, especially in the near-term. But Bend’s strong lifestyle appeal and limited developable land sustain long-term appreciation for well-located homes.

• Redmond & Prineville: Lower entry prices in Redmond or Prineville can improve the buy/rent math. If you can find a reasonably priced home (or a duplex), the break-even timeline shortens and cash-flow opportunities improve. Local inventory and where you want to live (commute, schools, amenities) will tilt the decision.

  
  

If you’re local, I can run a custom rent-vs-buy example for your ZIP code showing exact monthly numbers, break-even horizon, and sensitivity to rates — tell me a target price or rent and I’ll run it.

Practical rules of thumb (quick checklist)

• Rent if: you plan to move within ~3 years, need flexibility, can’t afford a meaningful down payment, or your cash would be better invested elsewhere.

• Buy if: you plan to stay 5–7+ years, can afford 20% down (or have a strong mortgage plan), and want to build equity or customize your home.

• Negotiate: in markets where buying is expensive, sellers offering credits (closing-cost help) or rate buydowns can materially change monthly costs — ask your agent to negotiate these.

What should you do?

1. Run the numbers for your situation (use a rent-vs-buy calculator and include taxes, insurance, maintenance, HOA, and opportunity cost of your down payment).

2. Factor in your timeline and life plans — flexibility vs. stability, family, job mobility.

3. Check local reports — national headlines say “renting is cheaper in most cities,” but your neighborhood may be an exception.

FAQs

Q: Are those national reports exaggerating?

A: No — they’re using sensible metrics (median rents, mortgage assumptions, taxes, insurance). But regional variation is big: a few metros buck the trend, so always look at local data. Bankrate+1

Q: When will buying become cheaper again?

A: Buying becomes more attractive if mortgage rates fall significantly, home prices drop, or local rents spike. Watch rates and local inventory. Zillow and other housing forecasts expect gradual changes; timing is uncertain.

Q: Does owning still build wealth?

A: Yes—if you hold long enough and buy at a sensible price. Buying builds equity, offers tax and non-financial benefits, and can outperform renting over time — but the short-term monthly math in 2025 often favors renting.