Pittsburgh is currently the only major U.S. metro where buying a starter home costs less than renting, according to a new Realtor.com study. In June, owning a 0–2-bedroom home in the Steel City was about $111 cheaper than renting—$1,361 compared to $1,472—roughly a 7.5% savings, according to Newsweek, who reported on the study this week. 

In every other large metro, renting remains significantly cheaper than buying. Nationally, Realtor.com found that in June, buying a starter home cost an average of $908 more per month than renting—53.1% higher. This calculation included a 9% down payment, taxes, insurance, and HOA fees for buyers, compared to median rental rates.

Renters have benefited from 23 consecutive months of year-over-year rent declines across the 50 largest U.S. metros. Median rent in June stood at $1,711, up just $6 from the previous month. Yet, this improvement is modest when viewed historically—rents are only $48 (2.7%) lower than their August 2022 peak.

"The advantage of buying has diminished over the past 12 months, as lower home prices initially attracted a wave of buyers—driving up competition and pushing prices higher," said Realtor.com economist Jiayi Xu.

Newsweek writes that the cost of homeownership still remains elevated due to lingering effects of the pandemic housing boom and high mortgage rates. "During the pandemic era, housing prices surged significantly. In addition, today's elevated mortgage rates and increasing insurance premiums have made owning a home become more expensive," Xu told Newsweek.

By contrast, renters benefit from increased supply. "On the rental side, there is a boom of new multifamily construction," Xu added. "With a steady stream of new rental supply entering the market over time, rents have remained stable—or even declined—due to abundant inventory, making renting a far more affordable option."

Pittsburgh avoided the housing frenzy that pushed prices sky-high in many U.S. cities during the pandemic. "It avoided the housing boom cycle during the pandemic and was able to maintain its stability," Xu said. "In fact, according to a recent Realtor.com report, it is one of just three major U.S. metros where a typical household can afford a home while spending less than 30 percent of its annual income."

David Dean, president of the Pennsylvania Association of Realtors, attributes Pittsburgh’s affordability to resilience and infrastructure. "The Pittsburgh market has continued to be a steady real estate market throughout history. Throughout the pandemic, Pittsburgh was incredibly resilient. We have a lot of reasons why this was the case," he said.

"We have a tremendous infrastructure with the medical industry in the city. The real estate industry was able to pivot toward supporting a steady market than other places were. We embraced technology quickly to be able to show properties and complete the transaction without ever being face to face," Dean added.

Part of Pittsburgh's affordability comes from its aging housing stock. "According to 2023 ACS data, the median year homes were built nationwide is in 1981, compared to 1961 in Pittsburgh—indicating that much of the housing inventory in the metro is significantly older and often in need of renovation, which helps keep prices down," Xu said. "Though many homes are dated, they offer an opportunity for buyers to invest in renovations and achieve homeownership at a more accessible price point."

Dean also emphasized the region's inventory of affordable homes. "People who want to age in place can, but those who want to right size, are able to put their homes on the market for other buyers," he said. "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."

While Pittsburgh home prices have been rising slightly—up 1.9% year-over-year in June to $270,000—experts believe affordability won’t be compromised. "On average, we have seen some price increases this past year but I believe it is mostly relative to the inventory," said Michelle Senko, president of the Realtors Association of Metropolitan Pittsburgh.

"I strongly believe Pittsburgh will remain affordable because of the complementary factors surrounding the property values; a variety of dynamic communities, modest cost of living and industrial growth remaining stable," she said.