February 2024 Rental Report: Renting a Starter Home Is More Affordable Than Buying One in Top 50 metros

Highlights

• February 2024 marks the seventh year-over-year rent decline in a row for 0-2 bedroom properties observed since trend data began in 2020. Asking rents dipped by $7, or -0.4%, year over year (Y/Y).

• The median asking rent in the 50 largest metros decreased to $1,708, down by $4 from last month and down $50 (-2.8%) from its August 2022 peak. 

• Median rent was mixed across size categories: Studio: $1,426, down $21 (-1.5%) year over year; 1-bed: $1,587, down $6 (-0.4%) year over year; 2-bed: $1,889, down $15 (-0.8%) year over year.

• In all of the 50 largest U.S. metros, renting a starter home is a more affordable option than buying one. In these markets, the monthly cost of buying a starter home in February 2024 was $1,027 more, or 60.1% higher, than the cost of renting.

• The overall advantage of renting became more pronounced. The monthly savings from renting were $162 higher compared with the prior year across the top 50 metros.

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