Pittsburgh is the only U.S. city where it's cheaper to buy a home than rent, report says
Pittsburgh is the only city where it's cheaper to buy a home than rent, according to a new report.
Realtor.com says renting is more affordable than buying in 49 of the 50 largest U.S. cities, except for Pittsburgh.
Renting vs. buying a home in Pittsburgh
, leasing a median home in Pittsburgh cost $1,473 last month, which is well below the national median asking rent of $1,711.
Meanwhile, purchasing a starter home in the Steel City costs $1,362 a month. Economists said they got that figure by assuming a 9% down payment with a 30-year fixed mortgage, before tacking on HOA fees, taxes and homeowners insurance.
Why is it cheaper to buy a home than rent in Pittsburgh?
Buying over renting in Pittsburgh will result in a monthly savings of $111, which seems like a pretty good deal when you consider that in 49 of 50 top metros, buying a starter home costs $908 more than renting one in June.
"Pittsburgh remains one of the most affordable places in the U.S. to live and to buy a home," realtor.com senior economic research analyst Hannah Jones said on the website. "It's the only major market where buying a home is cheaper than renting, and one of just three large metros where a median-income household can afford a median-priced home."
Realtor.com says since 2019, home prices in Pittsburgh have gone up about 31% while rents have jumped about 40%, pushing the cost of renting beyond the cost of buying.
