Current:Home > FinanceWant to rent a single-family home? Here's where it's most affordable. -Wealth Empowerment Zone
Want to rent a single-family home? Here's where it's most affordable.
View
Date:2025-04-13 06:34:10
With the cost of buying a home financially out of reach for most Americans, a growing number of people are choosing to rent a single-family home.
Nearly 2.5 million U.S. households have rented a single-family home in the past 12 months alone, according to an October estimate from the National Rental Home Council.
"It is generally less expensive to rent a home than to buy one, so for most Americans the path to homeownership starts with renting while saving for a down payment," Yanling Mayer, an economist with real estate research firm CoreLogic, said in a report this week. "However, homeownership is becoming more elusive than ever for many people, as surging rents over the last few years have put an increasing financial burden on budgets."
The lowest-cost cites for renting a single-family home across the U.S. are in the Midwest and the South. Here are the most most affordable metro areas, along with the median monthly rent, according to CoreLogic.
- Cleveland, Ohio ($1,395)
- Jacksonville, North Carolina ($1,400)
- Oklahoma City, Oklahoma ($1,595)
- Fayetteville, North Carolina ($1,600)
- St. Louis, Missouri ($1,650)
- Detroit, Michigan ($1,750)
- Fayetteville, Arkansas ($1,750)
- New Orleans ($1,750)
- College Station, Texas ($1,785)
- Tucson, Arizona ($1,875)
Of the millions of Americans who began renting a single-family home, most said they made the move because they wanted better housing, transferred to the area for a new job, needed cheaper housing or wanted to establish their own household, CoreLogic found.
Fully half of the nation's renters today live in a single-family home, while the rest live in multifamily buildings such as an apartment complex or condominium, as well as in in mobile homes, according to CoreLogic. Renting a single-family home is the most expensive option of the three, with the median monthly rent tallying $2,600 as of September. Still, renting a place is cheaper than buying a home in most parts of the nation.
Here are the nation's most expensive metro areas for renting a single-family home as of September, according to CoreLogic:
- Los Angeles ($4,750)
- San Diego ($4,500)
- San Jose ($4,300)
- San Francisco ($4,200)
- Ventura, California ($3,925)
- Riverside, California ($3,250)
- Miami ($3,200)
- Boston ($3,000)
- Bridgeport, Connecticut ($3,000)
- New York City ($3,000)
Soaring homeownership costs
The costs of owning a home have skyrocketed in recent years, driven largely by a shortage of properties on the market and, more recently, surging mortgage rates. The typical American household needs an annual income of $115,000 to afford the median priced home across the U.S., which is $40,000 more than what the average household makes, according to Redfin.
The median down payment on a home in September was nearly $61,000, the real estate firm's data shows. That's up roughly 15% from a year earlier, the biggest increase since June 2022.
- In:
- Rents
- Housing Crisis
Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.
TwitterveryGood! (4)
Related
- Why Sean "Diddy" Combs Is Being Given a Laptop in Jail Amid Witness Intimidation Fears
- Stock market today: Asian shares mostly lower after Wall St has its worst week in 6 months
- A Taiwan golf ball maker fined after a fatal fire for storing 30 times limit for hazardous material
- Deadly disasters are ravaging school communities in growing numbers. Is there hope ahead?
- Will the 'Yellowstone' finale be the last episode? What we know about Season 6, spinoffs
- Miami Dolphins stop short of NFL scoring record with 70-point outburst – and fans boo
- Philippines vows to remove floating barrier placed by China’s coast guard at a disputed lagoon
- Student loan borrowers face plenty of questions, budget woes, as October bills arrive
- Civic engagement nonprofits say democracy needs support in between big elections. Do funders agree?
- CDC recommends Pfizer's RSV vaccine during pregnancy as protection for newborns
Ranking
- Tom Holland's New Venture Revealed
- Biden warns against shutdown, makes case for second term with VP at Congressional Black Caucus dinner
- 3 crocodiles could have easily devoured a stray dog in their river. They pushed it to safety instead.
- Hazing lawsuit filed against University of Alabama fraternity
- Olympic men's basketball bracket: Results of the 5x5 tournament
- WEOWNCOIN: The Fusion of Cryptocurrency and Sustainable Development
- South Korea breezes through first day of League of Legends competition in Asian Games esports
- Saints QB Derek Carr knocked out of loss to Packers with shoulder injury
Recommendation
51-year-old Andy Macdonald puts on Tony Hawk-approved Olympic skateboard showing
Bachelor Nation's Becca Kufrin Gives Birth to First Baby With Thomas Jacobs
Sean Payton, Broncos left reeling after Dolphins dole out monumental beatdown
Louisiana man who fled attempted murder trial captured after 32 years on the run
Brianna LaPaglia Reveals The Meaning Behind Her "Chickenfry" Nickname
Taylor Swift turns out to see Travis Kelce, Kansas City Chiefs play Chicago Bears
Surprise! Bob Dylan shocks Farm Aid crowd, plays three songs with the Heartbreakers
Feds open investigation into claims Baton Rouge police tortured detainees in Brave Cave