As
first-time
homebuyers
contemplate
their
housing
options,
the
financial
calculus
between
renting
and
owning
is
essential.
Against
the
backdrop
of
elevated

mortgage
rates
and
soaring

home
prices,
discerning
the
evolving
financial
dynamics
between
renter-friendly
and
buyer-friendly
markets
is
also
paramount. 

A report
released
Tuesday
by


Realtor.com
highlights
a
significant
disparity
in
costs
between
buying
and
renting
a
starter
home
across
the
country’s
50
largest
metropolitan
areas.
As
of
February
2024,
the
monthly
cost
of
purchasing
a
starter
home
surpassed
that
of

renting
by
$1,027,
a
60.1%
difference. 

Notably,
renting
emerged
as
the
most
affordable
option
across
all
50
major
metros,
an
increase
from
45
metros
in
February
2023.
Cities
such
as
Memphis,
Tennessee;
Birmingham,
Alabama;
Pittsburgh;
St.
Louis;
and
Baltimore
transitioned
over
the
previous
12
months
from
markets
that
favor
buyers
to
ones
that
favor
renters. 

Within
the
top
10
metros
that
favor
renting
over
buying,
the
disparity
in
monthly
payments
for
a
starter
home
compared
to
rents
was
stark.
With
average
monthly
payments
for
a
starter
home
exceeding
rents
by
$1,950,
or
95.6%,
these
markets
are
popular
among
tech
workers
and
other
high-earning
professionals. 

Austin
topped
the
list
of
markets
that
favor
renting.
There,
the
monthly
cost
of
purchasing
a
starter
home
surged
to
$3,695,
141.5%
higher
than
the
monthly
rent
of
$1,530.
And
despite 
Houston’s
monthly
purchase
costs
falling
below
the
average
of
the
top
50
markets, 
it
emerged
as
one
of
the
top
rent-favoring
metros
in
February
2024.

Overall,
the
advantage
of
renting
has
become
more
pronounced
across
the
top
50
metros.
Last
month,
the
cost
to
buy
in
the
top
50
metros
was
$1,027
per
month
(60.1%)
higher
than
the
cost
to
rent.
This
compares
to
a
difference
of
$865
per
month
(50.4%)
in
February
2023. 

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