According to ATTOM’s 2025 Rental Affordability Report, homeownership remains more affordable than renting a three-bedroom property in most U.S. markets—despite rising home prices. The report found that owning requires a smaller portion of wages than renting in nearly 60% of the 341 county-level markets analyzed. However, both options still stretch household budgets, with major housing expenses commonly consuming between 25% and 60% of workers’ wages.
For those who can afford a down payment, owning a home is the better financial choice, even as mortgage rates fluctuate. “Homeownership remains the more viable option for those who can manage upfront costs,” said Rob Barber, CEO of ATTOM, adding that rising costs continue to make housing affordability a challenge for many.
Home Prices Rising Faster Than Rents
In two-thirds of U.S. counties, median home prices have increased more or declined less than average three-bedroom rental rates over the past year. Some of the largest counties where home prices outpaced rents include Los Angeles (CA), Cook (IL), Maricopa (AZ), San Diego (CA), and Orange (CA).
Conversely, in about one-third of the markets, rents rose faster than home prices, particularly in Harris County (Houston, TX), Tarrant County (Fort Worth, TX), and Bexar County (San Antonio, TX).
Household Budgets Under Strain
While homeownership is generally more affordable, the cost of buying a home still places a heavy burden on wages in most markets. Major ownership expenses consume over one-third of wages in 68% of the counties analyzed. However, the Midwest remains the most affordable region for buyers, with counties such as Jefferson (AL), Wayne (MI), and Peoria (IL) requiring less than 20% of wages for homeownership costs.
On the rental side, more than three-quarters of U.S. markets require over one-third of wages for rent. The most affordable rental markets include Detroit (MI), Flint (MI), and Birmingham (AL), while Suffolk County (NY), Naples (FL), and Atlantic City (NJ) rank as the least affordable for renters.
Wages vs. Housing Costs: The Balancing Act
In nearly three-quarters of local markets, wages are rising faster than rents, helping to ease affordability pressures slightly. However, home prices are increasing faster than wages in half of the country, putting added financial strain on homebuyers.
While homeownership remains the better long-term financial decision in most areas, affordability remains a significant challenge for both renters and buyers—especially in high-cost urban markets. As home prices, mortgage rates, and wages fluctuate, the housing affordability landscape will continue to evolve.
Access the full report here. To get the data behind the story, please contact one of our data experts.
