…But Home Prices are Rising Faster Than Rents
by ATTOM Team
ATTOM, a leading curator of land, property data, and real estate analytics, released its 2026 Rental Affordability Report, which shows that in more than half of counties analyzed, owning a home is more affordable than renting a three-bedroom property.
Typical home ownership expenses consumed a smaller share of residents’ wages than renting would have in 57.7% (210) of the 364 counties with sufficient data to analyze.
While home ownership would prove more affordable in the long run for many Americans, it usually requires a large up-front deposit and 2025 ended with record high home prices that may make it hard for some potential buyers to make the leap. In more than two thirds of counties analyzed, median home prices rose faster than rents in 2025.
“Renters looking to put down roots, young families who need more space, professionals relocating for work, and many others are facing a very tough choice,” said Rob Barber, CEO of ATTOM. “The data shows that buying is typically the most affordable long-term option, but as the housing market sets new record-high prices quarter after quarter, affording the initial investment becomes increasingly challenging.”
Home price growth exceeds rent growth in more than two thirds of counties
Median prices on single-family homes rose at a greater rate (or declined at a lesser rate) than median rent on a three-bedroom property in 69% (251) of the 364 counties with sufficient data to analyze. Counties were included in the report if they had a population of 100,000 or more, sufficient single family home sales data for 2025, and sufficient three-bedroom rental data for 2025 and 2024.
The most populous counties where median home prices rose faster (or declined slower) than typical three-bedroom rent were:
» Los Angeles County, CA
» Harris County, TX
» Maricopa County, AZ
» San Diego County, CA
» Orange County, CA
The most populous counties where rent increases outpaced home prices were:
» Cook County, IL
» Alameda County, CA
» Palm Beach County, FL
» Hillsborough County, FL
» Orange County, FL
Buying more affordable in Midwest, renting more affordable in West
Counties in Midwestern states showed a strong tendency toward home ownership being more affordable than renting, while the opposite was true in Western states.
In the Midwest, it was more affordable to buy than rent in 81.5% of counties analyzed. In the South, that was true for 66.3% of counties. But in the Northeast, it was more affordable to buy than rent in 48.8% of the counties analyzed and in the West it was only more affordable to buy in 16.9% of counties.
The counties with the biggest affordability gaps in favor of home ownership were:
» Collier County, FL (ownership expenses for homes purchased in 2025 consumed 70.1% of the typical resident’s wages, compared to 119.4% for median three-bedroom rent)
» Suffolk County, NY (60.4% of typical wages to own versus 97.8% to rent)
» Taylor County, TX (28.6% of typical wages to own compared to 45.9% to rent)
» Mobile County, AL (15.1% of typical wages to own versus 29% to rent)
» Harrison County, MS (30.3% of typical wages to own versus 44.2% to rent)
The counties with the largest affordability gaps in favor of renting were:
» Alexandria City, VA (91.4% of typical wages to own versus 48.5 to rent)
» Maui County, HI (119.2% of typical wages to own versus 78.9 to rent)
» Santa Clara County, CA (61.7% of typical wages to own versus 27.1 to rent
» Alameda County, CA (79.3% of typical wages to own versus 46% to rent)
» Orange County, CA (104.1% of typical wages to own versus 71.9 to rent)
Big regional differences in ownership affordability
Home ownership expenses consumed more than a third of the typical resident’s wages in 65.7% (239) of the 364 counties analyzed. Owning consumed more than a third of typical residents’ wages in:
» 96.9% of counties in Western states
» 86% of counties in Northeastern states
» 61% of counties in Southern states
» 29.7% of counties in Midwestern states
The most affordable counties to own a home (assuming a 20% down payment on purchase) were:
» Peoria County, IL (owning consumed 14.5% of typical wages)
» Wayne County, MI (14.9%)
» Mobile County, AL (15.1%)
» Jefferson County, AL (16.3%)
» Montgomery County, AL (16.7%)
The least affordable counties for ownership were:
» Maui County, HI (119.2%)
» Orange County, CA (104.1%)
» Honolulu County, HI (95.2%)
» Monterey County, CA (93.4%)
» San Luis Obispo County, CA (92.5%)
Renting requires a third of wages in three quarters of counties
Renting a three-bedroom property, meanwhile, consumed more than a third of a typical resident’s wages in 76.9% (280) of the 364 counties analyzed. Renting consumed more than a third of wages in:
» 95.4% of analyzed counties in the West
» 90.7% of counties in the Northeast
» 77.7% of counties in the South
» 40.7% of counties in the Midwest.
The most affordable counties for renting were:
» Jefferson County, AL (renting consumed 20.2% of a typical resident’s wages)
» Wayne County, MI (21.3%)
» Shelby County, TN (22.1%)
» Black Hawk County, IA (22.3%)
» Peoria County, IL (22.4%)
The least affordable markets for renting were:
» Collier County, FL (119.4%)
» Suffolk County, NY (97.8%)
» Monterey County, CA (80.2%)
» Maui County, HI (78.9%)
» Westchester County, NY (75.4%)
Wages outpacing rents and home prices
Average wages increased more (or declined less) than rent for three-bedroom properties in 76.1% (277) of the 364 counties with sufficient data to analyze.
The most populous counties where wages outpaced rent increases were:
» Los Angeles County, CA
» Harris County, TX
» Maricopa County, AZ
» San Diego County, CA
» Orange County, CA
The largest counties where rent outpaced wages were:
» Cook County, IL
» Nassau County, NY
» Allegheny County, PA
» Salt Lake County, UT
» Fairfax County, VA
Wages increased more (or declined less) than median home prices in 59.1% (215) of the 364 counties.
The most populous counties where wages outpaced home prices were:
» Harris County, TX
» Maricopa County, AZ
» San Diego County, CA
» Orange County, CA
» Miami-Dade County, FL
The largest counties where home prices outpaced wages were:
» Los Angeles County, CA
» Cook County, IL
» King County, WA
» San Bernardino County, CA
» Santa Clara County, CA
