For the 32nd consecutive month, the cost of renting across the nation’s 50 largest metropolitan areas has fallen on an annual basis, ensuring that renting a starter home remains more affordable than buying in every major market.

The national median asking rent for properties with up to two bedrooms fell to $1,669 in March, marking a 1.5% drop from a year ago, according to a report released Thursday by Realtor.com. While renting currently saves households an average of $920 per month compared to the typical loan payment on a starter home, that advantage has shrunk due to higher mortgage rates.

This persistent softness in the rental market is largely attributed to a surge in multifamily construction over recent years. Rent declines were observed across all unit sizes: studios dropped to $1,410, one-bedrooms to $1,563 and two-bedrooms to $1,859.

While current overall rents are roughly 5.4%, or $95, below the high observed in the summer of 2022, they remain 17.5% higher than pre-pandemic levels recorded in March 2019.

The narrowing gap between the cost of renting and buying is primarily driven by cooling mortgage rates and slightly lower listing prices. Realtor.com calculates the “buy cost” by factoring in median list prices for homes with two bedrooms or less, a 9% downpayment, prevailing 30-year fixed mortgage rates, homeowners association fees, taxes and insurance.

Based on these factors, the monthly cost to buy a starter home fell by $162 year over year in March, driven by 30-year fixed mortgage rates dipping to an average of 6.18% compared to 6.65% in March 2025.

Despite this shift, homebuying remains a steep proposition in many regions, especially in tech-heavy and expensive coastal hubs.

Austin, Texas, led the nation as the top rent-favoring market, with the monthly cost of buying exceeding renting by $1,719 — a 126.3% premium. In San Jose, Calif., the renting advantage narrowed to $420 compared to last year, yet renting still saves residents a significant $2,425 a month over buying.