In many U.S. markets in 2026, it is now cheaper to buy than rent — at least on a monthly basis. According to ATTOM’s latest affordability data, owning a typical single-family home costs less than renting a three-bedroom property in nearly 58% of counties analyzed.¹
That doesn’t mean buying is automatically the better choice for everyone. But it does signal a meaningful shift. In many regions — particularly across the Midwest and South — monthly mortgage payments now require a smaller share of local wages than rent. And unlike rent, part of every mortgage payment builds equity, increasing the portion of the home you own over time.
“Cheaper” also depends on how you measure it. Renting may require less upfront cash. Buying typically requires a down payment and closing costs. But homeowners gain predictability with a fixed-rate mortgage and the opportunity to build long-term wealth — while renters remain exposed to annual rent increases.
Understanding how those tradeoffs apply to your finances is key.
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Is it cheaper to buy or rent in 2026?
A recently published 2026 Rental Affordability Report by ATTOMÂą underscores a surprising shift in the real estate landscape: Owning a home is now more affordable than renting a three-bedroom property in 57.7% of the 364 counties analyzed. Ongoing monthly homeownership expenses actually demand a smaller percentage of local wages than rent in 210 of these areas, even though 2025 ended with record-high home prices.
To put this into perspective: if a renter pays $1,700 per month, that’s over $20,000 per year with no ownership benefit. A homeowner with a similar monthly payment may be directing several hundred dollars of that payment toward principal each month — effectively “paying themselves” in equity. Over five years, that difference can add up significantly.
The bad news? Median home prices outpaced rent hikes in over two-thirds of the studied regions throughout the past year.
Whether renting or buying makes better financial sense often depends on geography, the report indicates. The Midwest leads the nation in homeownership affordability, with buying being less costly than renting in 81.5% of counties in this region, versus 66.3% in the South. In the Northeast and West, meanwhile, homeownership is more affordable in only 48.8% and 16.9% of counties, respectively; there, renting persists as the more accessible option for most.
If you're seeking to maximize your purchasing power, it pays to look closer at the most affordable areas where the percentage of average local wages necessary to buy a single-family home is less than 20%. Here are the top 10 counties nationwide (with a population of at least 100,000) where that is currently true, per ATTOM:
- Peoria County, IL: $134,000 median price; 14.5% of average wages
- Wayne County, MI: $165,000 median price; 14.9% of average wages
- Mobile County, AL: $150,000 median price; 15.1% of average wages
- Jefferson County, AL: $179,900 median price; 16.3% of average wages
- Montgomery County, AL: $164,687 median price; 16.7% of average wages
- Saint Louis City County, MO: $202,067 median price; 17.3% of average wages
- Jefferson County, TX: $174,250 median price; 17.4% of average wages
- Delaware County, IN: $143,000 median price; 18% of average wages
- Richmond County, GA: $163,000 median price; 18.4% of average wages
- Bibb County, GA: $159,900 median price; 18.8% of average wages
Additionally, consider that for the seventh consecutive month, overall affordability has improved, based on the National Association of Realtors' Housing Affordability Index, up from 102 a year ago to 116.5 in January 2026.²
The Housing Affordability Index measures whether a typical family earns enough income to qualify for a mortgage on a median-priced home. A reading above 100 means the median household has more than enough income to qualify. That increase suggests buying power is quietly improving — even if headlines still focus on high prices.
What does this shift in the buy vs. rent market mean for homebuyers?
This shift in the real estate market signifies a notable departure from previous trends, where renting was often considered the more financially viable choice for many Americans, especially in costly markets like New York, California, and other areas.
"The key takeaway from the ATTOM report is that the dynamics of affordability are shifting, with homeownership becoming more accessible in regions that traditionally saw lower demand for real estate," says Dan Rochon, associate broker with eXp Realty. "While it may seem counterintuitive, the analysis indicates that the long-term benefits of building equity make homeownership a better financial move in most of the country, especially in the Midwest and South."
In practical terms, this means buyers who were previously priced out of ownership in 2022–2024 may now find that monthly ownership costs are closer to — or even below — rent. The opportunity isn’t universal, but in many Midwest and Southern markets, the math has shifted meaningfully.
Martin Orefice, CEO of Rent To Own Labs, finds the ATTOM report credible.
"The fact that they used percentage of average wages to calculate this definitely makes their results more reliable. It shows that, among the areas they list as affordable, these aren't just cheap homes in economically depressed areas," he notes. "You can actually work in the area and afford these properties."
Truth is, rents have increased sharply in many areas, often outpacing wage growth. At the same time, portions of the South and Midwest haven't experienced the same explosive property price growth as coastal markets, according to personal finance expert Tara Saxon.
"This creates pockets in the country where mortgage repayments undercut rental costs," she adds. "However, perception lags reality. In many markets, owning may be cheaper than renting on a monthly basis – but the upfront capital required to enter the market has become the real constraint."
Where is it cheaper to buy than rent? How location changes everything
The report highlights the growing locational divide in the housing market, contrasting the more affordable South and Midwest against the West, where renting remains the dominant financial option.
"In the Midwest and South, home prices are more in line with local wages, and the cost of living is significantly lower than in coastal cities. Metros like Houston, Dallas, and even smaller counties in the Midwest offer affordable homes with prices that make owning financially viable," Rochon points out. "In contrast, areas on the West Coast and in some parts of the East Coast continue to experience an affordability crisis, where rent prices far exceed the cost of ownership."
This expanding geographic gap is primarily attributed to various economic conditions in these regions. The Midwest and South have benefited from a steady inventory of homes that keeps prices at more manageable levels, while the West struggles with supply shortages and increasing demand.
Can you actually afford to buy a home right now? The biggest obstacle isn't the mortgage
More buyers today can better afford the monthly housing payments. But it's the down payment, earnest money, and closing costs that can derail your best-laid plans to purchase.
"We are seeing a market where ownership is mathematically more viable but cash-constrained," Saxon explains. "Buyers may be able to handle repayments, but all the other expenses and deposits are the chokepoint. When liquidity feels tight, many people default to caution – even if long-term ownership would be advantageous."
Orefice agrees, noting that even in the top 10 most affordable locations listed, purchasing requires a large upfront investment and typically only pays off in the long term.
That said, many renters overestimate how much cash they need to buy. A 3% down payment on a $300,000 home is $9,000 — not $60,000. And closing costs typically range from 2–5% of the purchase price. Understanding these numbers clearly can make the difference between “someday” and “this year.”
Lenders like Better offers a range of low down payment mortgage options — including conventional loans with as little as 3% down and FHA loans requiring just 3.5% down — making it possible to get into a home without years of aggressive saving. Better's digital-first process also means you can get preapproved in minutes, so you know exactly where you stand before you start shopping.
Better also provides a fully digital preapproval process, transparent rate comparisons, and real-time loan tracking — so you’re not guessing where you stand financially. Instead of relying on online affordability calculators alone, you can see personalized numbers based on your actual income, credit, and debt profile.
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Should you buy or rent a home in 2026?
The choice to rent or buy will ultimately depend on your financial and personal circumstances. But in many areas of the country, purchasing a home is now the smarter financial move, as demonstrated by the report findings.
"With mortgage rates remaining relatively stable and home prices in many areas becoming more affordable, owning a home is increasingly accessible. It remains one of the best ways to build wealth and secure financial stability," says Rochon.
Ponder that mortgage interest rates are often still lower than the rent inflation observed in many locations.
With a fixed-rate mortgage, your principal and interest payment stays stable for the life of the loan. Rent, on the other hand, typically rises over time. Even modest annual rent increases can compound significantly over five or 10 years, while homeowners lock in predictability.
"Renters face substantial price hikes, while many homeowners can lock in fixed-rate mortgages – enabling them to pay the same amount each month in principal and interest over the long-term," Rochon continues. "For those in the right financial position, this gives homeownership a clear advantage over renting."
Saxon concurs that ownership in stable markets can support long-term wealth accumulation via equity growth and forced savings.
"But financial decisions aren't purely mathematical," she adds. "If buying stretches your finances so tightly that it creates ongoing stress or limits mobility, the psychological cost can offset the financial upside."
Owning is almost always the better path if you intend to stay put for several years, allowing you to recoup the costs of closing expenses and build equity.
The answer to buying versus renting commonly depends on your personal discipline with savings and money management.
Is now a good time to buy a home?
Assuming your finances are in good shape, you enjoy job stability, and you can qualify for a mortgage loan, now is an excellent time to consider buying. That's because mortgage rates have recently dropped to four-year lows, home prices have stabilized, housing inventory has increased, and most markets clearly favor buyers over sellers – giving purchasers more negotiating power.
"Homeownership builds wealth over time when it's sustainable," says Saxon. "However, before buying, carefully assess whether you can comfortably absorb maintenance, property taxes, insurance, and unexpected repairs without financial strain."
Take the time to get preapproved for a mortgage loan so you can learn what you should qualify for; a mortgage preapproval letter will also impress home sellers. Shop for mortgage offers from several different lenders, including Better.com, which offers attractive mortgage rates and loan terms. And use a mortgage calculator to estimate your monthly payments, including principal, interest, taxes, and insurance.
Buy vs. rent: The bottom line for 2026 homebuyers
Particularly in areas where it costs less to own than rent – which is true in nearly three-fifths of counties analyzed by ATTOM – purchasing a property is usually the better option. When you lease, you build no equity, and you are subject to the whims of your landlord and inevitable rent hikes; with a fixed-rate mortgage loan, on the other hand, you'll pay exactly the same amount in principal and interest every month over the life of your loan. And after buying, if rates come down further, you can refinance to pay even less every month.
And programs like Better Forever can reduce the cost of refinancing again in the future, helping homeowners stay flexible if rates fall. That optionality matters in a changing rate environment.