Neither Los Angeles nor Houston – This is the only U.S. city where a first home costs less than renting

As rent keeps rising in most cities, only one major U.S. city still offers first-time buyers a better deal than renters

Modified on:
July 22, 2025 4:28 pm

Buying your first home is no longer the dream it used to be. Prices have jumped. Mortgage rates are high. And in most big cities, it now costs way more to buy than to rent. But there is one surprising place that stands out.

Not Los Angeles. Not Houston. Not even Atlanta. The one U.S. city where buying a starter home is still cheaper than renting? Pittsburgh.

Let us break down what is going on and why Pittsburgh is the only place where the numbers actually work in favor of homebuyers.

Why is buying cheaper than renting in only one U.S. city?

Realtor.com looked at 50 major metro areas across the U.S. to compare the cost of renting a small home versus buying one. And the results were clear—Pittsburgh was the only city where buying a starter home was less expensive than renting. Here are the highlights:

  • Renting a 0–2 bedroom home in Pittsburgh cost about $1,472 per month
  • Buying a similar starter home in Pittsburgh would cost around $1,361 per month
  • That is a difference of $111 less per month when you buy instead of rent

In every other major city, renting is still cheaper. So, what makes Pittsburgh different?

What is making rent cheaper in most U.S. cities?

Even though the cost of owning a home has gone up, rent in many cities has actually gone down or stayed flat. This is mostly because a lot of new apartment buildings have been built recently. There is more rental housing available now than before. Because of this, landlords are keeping prices stable or even lowering them, and in June, the national average rent was $1,711, just slightly higher than the month before

But even with rent staying somewhat steady, buying has become way more expensive because of:

  • High mortgage rates (around 7 percent)
  • Rising home insurance costs
  • Bigger down payments and closing costs

So unless you are in a place like Pittsburgh, renting is usually the cheaper option.

How did Pittsburgh avoid the national housing price surge?

Most cities saw housing prices spike during the pandemic. But Pittsburgh did not follow that trend.

According to Realtor.com’s economist Jiayi Xu, “Pittsburgh avoided the housing boom cycle during the pandemic and was able to maintain its stability.”

Here is why Pittsburgh stayed different:

  • Home prices in Pittsburgh have always been well below the national average
  • The city did not experience the same level of buying frenzy
  • Many of the homes are older and need renovation, which lowers the price

Even today, a typical household in Pittsburgh can still afford a home without spending more than 30 percent of their income—a major win compared to other metros.

What else makes Pittsburgh affordable?

There are several reasons why Pittsburgh continues to be a good deal for homebuyers including: 

  • A strong medical and education industry keeps the local economy steady
  • Lots of affordable older homes mean lower prices and chances to build equity
  • Buyers can get more space for their money compared to cities like L.A. or New York
  • People aging in place are slowly freeing up homes for younger buyers

David Dean, president of the Pennsylvania Association of Realtors, explained it like this:

“Pittsburgh has become a destination for those who want to take advantage of living in a metro area because they find they can afford a much larger property for their investment.”

Are prices in Pittsburgh going up now?

Yes, but not by much. According to Redfin, home prices in Pittsburgh went up about 1.9 percent in June compared to last year. The median sale price is now around $270,000.

Experts say this rise is not a sign that affordability is going away. In fact, it is more about limited inventory than runaway demand.

Michelle Senko, president of the Realtors Association of Metropolitan Pittsburgh, put it simply:

“I strongly believe Pittsburgh will remain affordable because of the complementary factors surrounding the property values.”

So if you are thinking about buying your first home and affordability matters to you, Pittsburgh might just be your best bet in the entire country.

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Enobong Demas
Enobong Demashttps://polifinus.com/author/e-demas/
I write on social welfare programs and initiatives for the United States, focusing on how these programs impact the lives of everyday Americans. My background in environmental sciences allows me to approach these topics with a unique analytical lens to provide my readers with a clear and well-rounded insight, eliminating the complexities often common with these topics.

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