Summary
The gap between the cost of buying and renting a home in the U.S. is getting smaller. Home prices are starting to go down while rent costs keep rising, according to a report by Redfin.
Key Facts
- Americans now need an annual income of $111,252 to buy a typical home.
- To rent a typical home, an income of $76,020 is needed.
- The current cost gap between buying and renting (46%) is the narrowest in three years.
- In December 2025, the income needed to buy a home dropped from $115,870 to $111,252.
- The gap is widest in San Jose, California, where buying requires $374,241, 175% more than renting.
- Pittsburgh has the smallest gap between buyer and renter income needs at 13%.
- Median rent nationwide is $1,901, close to an all-time high.
- Homebuyers have more negotiating power due to a "buyer's market," leading to potential price discounts.
