Pittsburgh is one of only 2 cities where it's cheaper to buy a home than rent, economists say
Pittsburgh is one of only two cities in the U.S. where right now it's cheaper to buy a home than rent, economists with Realtor.com say. But the trend isn't expected to last long.
The real estate website says that according to its rental report for January, it's actually cheaper to buy a home than it is to rent in Pittsburgh and Detroit.
"These two markets are, unsurprisingly, the two with the lowest median listing prices of our top 50 metros," Realtor.com senior economist Joel Berner said on the website.
Pittsburgh's median home list price last month was $229,700, with a monthly mortgage payment of $1,199. Meanwhile, the median rent during the same period was $1,413, Realtor.com says. Data analysts say the trend doesn't appear to have longevity because indicators show renting is becoming more affordable while buying is becoming more expensive.
Rental prices have fallen for 18 straight months in all of the United States' 50 major metro areas, Realtor.com says, with an average price of $1,703. In comparison, the monthly mortgage payment on a median home list price is $400,500, resulting in a $2,123 monthly mortgage payment, assuming there's a 20% down payment and 6.96% interest.
"Even though rents are falling, renters are still feeling the pinch from the rapid rent growth of 2021 and 2022," Berner said. "The situation is similar in the for-sale market, where the median listing price has started to fall but remains well above its pre-pandemic benchmark."
