Renting a Single-Family Home: A Growing Trend in the U.S.
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 Most Affordable Metro Areas for Renting a Single-Family Home
The lowest-cost cities for renting a single-family home across the U.S. are in the Midwest and the South. Here are the most affordable metro areas, along with the median monthly rent, according to CoreLogic:
- City A - $X
- City B - $Y
- City C - $Z
- 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)
According to a recent study by CoreLogic, the majority of Americans who choose to rent a single-family home do so because they want better housing, have relocated for a new job, need more affordable housing, or want to establish their own household.
CoreLogic also found that half of all renters in the country live in single-family homes, while the other half live in multifamily buildings or mobile homes. Renting a single-family home is the most expensive option, with a median monthly rent of $2,600 as of September. However, it is still generally cheaper to rent than to buy a home in most parts of the country.
Here are the top ten most expensive metro areas for renting a single-family home, 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
In recent years, the costs of owning a home have risen dramatically, primarily due to a shortage of available properties and increasing mortgage rates. According to Redfin, the average American household needs an annual income of $115,000 to afford the median priced home in the U.S., which is $40,000 more than the average household income.
The median down payment on a home in September reached almost $61,000, according to recent data. This represents a significant increase of approximately 15% compared to the same period last year, marking the largest surge since June 2022.
