Housing News

Rent vs Buy: Homeowners Will Save the Most Money in These Places

Even though home prices have been on the upswing and mortgage rates are holding near 7%, owning a home is still cheaper than renting a three-bedroom apartment in more than half of the nation, according to a recent report from real estate data firm ATTOM.

Housing costs typically eat up about 25% to 60% of wages whether someone is buying or renting, according to the report.

Not surprisingly, it’s more affordable to buy in the Midwest and South, where housing prices are lower. The Northeast came in third.

In the West, however, it’s cheaper to rent in 80% of the markets.

“Buying or renting a home in the U.S. these days can be like searching for a diamond in a pile of marbles. And it’s only getting worse in most markets as the cost of both goes up,” ATTOM CEO Rob Barber said in a statement. “However, in most parts of the country, homeownership is somewhat more attainable for those who can gather the necessary resources to cover down payments.”

To come up with its findings, ATTOM compared average three-bedroom rents in 2024 and 2025 with single-family home price data in 2024 for 341 counties. Then the firm looked at U.S. Bureau of Labor Statistic’s average weekly wage data in the second quarter of 2024.

Where is it cheaper to buy a home?

Suffolk County, N.Y. was the most affordable county for homebuyers.

In this affluent community on Long Island, outside of New York City, the average earner will have to pay 59% percent of wages to buy a typical home. That’s compared to spending 159% of their income to rent a three-bedroom apartment.

The median home sales price in Suffolk County was $650,000 in 2024, according to data from the local multiple listing service provided by Paul Dyckes. His eponymous real estate brokerage and home-appraisal office is based in Huntington, in Suffolk County.

Meanwhile, the median rent for a three-bedroom apartment in the county was $4,500 a month.

With these numbers, buying is preferable “because you build up equity in your home over the years,” said Dyckes.

5 counties where homeowners will save the most money

1. Suffolk County (Long Island), N.Y.
2. Atlantic County (Atlantic City), N.Y.
3. Collier County (Naples), Fla.
4. Indian River County (Vero Beach), Fla.
5. Charlotte County (Punta Gorda), Fla.