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Whether you’re renting or buying a home in 2025, it’s likely putting an outsized dent in your wallet, depending on where you live.
The 2025 Rental Affordability Report, released Thursday by the real estate analytics firm ATTOM, shows that both owning and renting remain a challenge for average American workers, eating up between 25 to 60% of their wages.
Is it cheaper to rent or buy in 2025?
Dig deeper:
The answer to this question depends on where you live. Overall, it’s cheaper to own a single-family home than rent a 3-bedroom house in nearly 60% of the 341 markets analyzed.
RELATED: Housing affordability improved in half of the largest US markets last year; see the list
The "most favorable" home-buying conditions are in the Midwest and South, followed by the Northeast. The West is the only region in America where it’s cheaper to rent. According to ATTOM, that’s the case for about 80% of western markets.
Where is rent the cheapest?
Local perspective:
The report found that in 76% of the 341 counties analyzed, rents cost more than a third of average wages. The Midwest is the outlier, "with a majority of markets in that region falling below the one-third benchmark."
RELATED: The most and least affordable cities for renters: Final 2024 data
The most affordable rental markets are:
- Black Hawk County (Waterloo, Iowa)
- Wayne County (Detroit, Michigan)
- Genesee County (Flint, Michigan)
- Jefferson County (Birmingham, Alabama)
- Hinds County (Jackson, Mississippi)
Attom also looked at the most affordable rental markets with a population of over 1 million and found that rents in these large markets also cost less than a third of average wages:
- Wayne County (Detroit, Michigan)
- Cuyahoga County (Cleveland, Ohio)
- Allegheny County (Pittsburgh, Pennsylvania)
- Philadelphia County (Pennsylvania)
- Santa Clara County (San Jose, California)
Where is rent the most expensive?
According to Attom, here are the least affordable rental markets in America, where renters pay a lot more than a third of their income for rent:
RELATED: How extreme weather, high home prices could affect the 2025 housing market
- Suffolk County, New York (outside of NYC)
- Collier County, Florida (Naples)
- Atlantic County, New Jersey (Atlantic City)
- Santa Barbara County, California
- Riverside County, California (Riverside, Palm Springs)
Here are the most expensive markets with a population of over 1 million:
- Riverside County, California (Riverside, Palm Springs)
- Suffolk County, New York (outside NYC)
- Orange County, California (outside Los Angeles)
- Los Angeles County, California
- Kings County, New York (Brooklyn)
Where are home prices increasing faster than wages?
Of the 341 counties analyzed, home prices are increasing faster than wages in 52% of them.
These include:
- Los Angeles County, California
- Cook County, Illinois (Chicago)
- San Diego County, California
- Orange County, California (outside Los Angeles)
- Miami-Dade County, Florida
Where are wages rising faster than home prices?
Weekly wages rose faster than median home prices in 48% of the counties analyzed, including:
- Harris County, Texas (Houston)
- Maricopa County, Arizona (Phoenix)
- Dallas County, Texas
- Clark County, Nevada (Las Vegas)
- King County, Washington (Seattle)
The Source: This report includes information from real estate analytics firm ATTOM.