Owning a Home Cheaper Than Renting in Most U.S. Counties

But high upfront costs keep many potential buyers in rentals, report finds

Jan. 28, 2026 at 3:39pm

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A new report from real estate analytics firm ATTOM shows that owning a home is more affordable than renting in a majority of U.S. counties. However, the high upfront costs of home ownership are keeping many potential buyers in rental properties instead.

Why it matters

When owning costs less than renting over time, that can strengthen household finances by building equity and shape broader economic activity by boosting consumer spending and housing demand. But affordability challenges are still widespread, with home prices rising faster than rents in over two-thirds of counties.

The details

The ATTOM report found that in 57% of counties analyzed, the cost of renting a three-bedroom property was higher than owning it. However, factors like inspection fees, closing costs, maintenance, and taxes can push up the cost of owning a home. Zillow calculated that these 'hidden' costs add almost $16,000 a year to the average U.S. homeowner's expenses.

  • The report analyzed data from 2025.
  • Home prices rose for the 30th straight month in December 2025.

The players

ATTOM

A real estate analytics firm that conducted the report on the affordability of owning versus renting.

Rob Barber

The CEO of ATTOM, who commented on the report's findings.

Shelton Weeks

An economics professor at Florida Gulf Coast University who provided analysis on the dynamics between owning and renting costs.

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What they’re saying

“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.”

— Rob Barber, CEO of ATTOM

“When you try to look at a county that is that diverse in terms of the housing stock, and you just look at the raw numbers, it's hard for it to really tell an accurate story because the markets are so inherently local.”

— Shelton Weeks, Economics Professor, Florida Gulf Coast University

What’s next

The report's findings highlight the ongoing challenges of housing affordability, with high home prices and upfront costs keeping many potential buyers in rentals despite owning often being the more affordable long-term option. Policymakers and industry leaders will likely continue to monitor these trends and explore ways to improve housing access and affordability.

The takeaway

While owning a home is cheaper than renting in most U.S. counties, the high upfront costs of homeownership are still pricing out many potential buyers and keeping them in rental properties instead. This dynamic underscores the broader affordability challenges facing both homeowners and renters across the country.