Homebuyers find better deals in Pittsburgh and Detroit amid changing market trends

In a surprising turn for homebuyers in Pittsburgh and Detroit, it is currently cheaper to buy a home than rent, according to the Realtor.com January 2025 Rental Report. Joel Berner, a senior economist at Realtor.com, notes that these two cities have the lowest median listing prices among the top 50 metros.

In Pittsburgh, the median home list price was $229,700 in January with a monthly mortgage payment of $1,199. This contrasts with the metro's median rent of $1,413 during the same period. However, this trend may not last long as buying is becoming more expensive while renting becomes more affordable.

Similarly, Detroit's typical home list price was $239,950 with a monthly mortgage payment of $1,252 compared to a median rent of $1,313. Berner points out that "buying a home has actually become more economical than renting one" due to rising rental costs and slight decreases in buying expenses.

Despite this current advantage for buyers in these cities, indicators suggest that renting may soon become more affordable than buying if trends continue. Berner warns that "Pittsburgh will become yet another metro where renting is more affordable than buying."

Across major U.S. metros for the 18th consecutive month, rental prices have decreased slightly by 0.2% from last year but increased from December to reach $1,703. The median home list price stood at $400,500 with a monthly mortgage payment of $2,123—nearly 25% higher than the median rent price.

While rents are falling slightly nationwide after rapid growth in previous years, renters still feel financial pressure. Meanwhile, despite some declines in listing prices for homes since their peak post-pandemic levels remain high compared to pre-pandemic benchmarks.

A significant disparity exists between income spent on rent versus mortgages across different cities; Oklahoma City had renters spending just 17.1% of their income on rent compared to 27.4% for homeowners there. In contrast though Miami and New York City had residents spending over 37% of their income on rent alone making neither option affordable.

Berner explains that changes such as declining rental prices alongside persistent high mortgage rates contribute towards making markets like Pittsburgh or Detroit temporarily advantageous places where purchasing remains less costly than leasing properties outrightly elsewhere within America's housing landscape today.