Blog > Homebuying is cheaper than renting in most U.S. counties

Homebuying is cheaper than renting in most U.S. counties

by Adam Sobel

A functional, unstuck market

For the first time in a while, the housing market feels less stuck and more workable.

Buyers are coming back, sellers are re-engaging, and pricing is starting to make sense again, even if conditions still vary widely by locale.

Add in the fact that buying is cheaper than renting in most U.S. counties, and the picture becomes clearer: this isn’t a boom, but it is a market that’s starting to function again.

Let’s dive in.

Housing market momentum is growing

Source: Unsplash

Momentum is building in the U.S. housing market. Buyer demand is strengthening, inventory is rising, and prices are stable – clear signs that the housing environment is far more functional and balanced than last year. Here are the key trends to know:

Buyer demand is building: Weekly pending home sales climbed steadily in January, reaching 56,252 by Jan. 23, with consistent week-over-week and year-over-year gains.
Mortgage applications confirm the trend: Purchase applications rose 5% week over week and 18% year over year, reinforcing near-term demand momentum.
Rates near 6% appear supportive: Historical patterns suggest demand improves as mortgage rates approach 6%, a dynamic that may finally be reemerging in 2026.
Inventory continues to grow: Active listings increased to 697,868, with year-over-year growth moderating but remaining at healthier levels than 2022–2024.
New listings are picking up: 53,920 new listings came to market last week, above the same period last year, signaling more sellers are reentering the market.
Prices remain stable: The median list price held at $419,900, roughly flat year over year, while 33.6% of listings saw price reductions—unchanged from historical norms.
Market conditions are active, not overheated: The Market Action Index registered 35.1, and absorption continues to outpace new listings, suggesting efficient transaction flow.
Key variable to watch: Mortgage rates remain the primary swing factor, with future demand dependent on rates staying near current levels into the spring.

My take

What stands out in this data isn’t a housing boom; it’s a return to functionality. Demand is improving as mortgage rates stabilize near levels that historically bring buyers back, while rising inventory is finally giving that demand somewhere to go. Prices holding steady amid higher listings suggest this is a market that’s finding balance, not overheating. The big question now is rates: if they stay near current levels into spring, this early momentum has a real chance to translate into stronger activity in the months ahead.

The most affordable counties for owning a home in 2026

Source: ATTOM

Owning a home is cheaper than renting a three-bedroom house or apartment in a majority of U.S. counties. According to ATTOM, of the 364 counties they analyzed, homeownership was more affordable in 57.7% of them, based on the share of average local wages needed to cover ownership costs.

Regionally, the Midwest stands out as the most buyer-friendly part of the country, while affordability breaks down sharply in Western states. In the Midwest, buying was more affordable than renting in 81.5% of counties, compared with 66.3% in the South. That drops to 48.8% in the Northeast and just 16.9% in the West.

Here are the counties where owning a home is most affordable, ranked by the percentage of average local wages needed to buy a single-family home:

My take

The Midwest and much of the South continue to offer a rare combination of modest home prices and wage levels that make ownership workable, while the West remains structurally out of reach for most buyers. This reinforces a key reality of this cycle: affordability is now highly regional, and markets where ownership costs stay below 20% of wages are likely to see steadier demand than those where renting still undercuts buying.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

Source: Mortgage News Daily

Homebuying is cheaper than renting in most U.S. counties

Housing market momentum is growing

My take

The most affordable counties for owning a home in 2026

Just in Case

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