AUSTIN, Texas — When it comes to searching for the perfect place to call home, Austin might just be the place – for renters.
According to a recent study from Realtor.com, it’s more affordable to rent in the Texas capital than it is to purchase a two-bedroom starter home.
This analysis compared 10 major U.S. metros, placing Austin at No. 1.
The website said as of July, Austin’s starter homes cost roughly $3,588 monthly versus rental prices at $1,468. This means Austinites saved more than $2,100 when renting compared to buying their first house.
Meanwhile, the average national monthly cost of a home in July was $2,808, for a total of $439,950. In comparison, last month’s average rent for a studio was $1,460, a single-bedroom space was $1,615 and a two-bedroom cost $1,933.
Realtor.com also said estimated year-over-year rental costs have lessened from 2023 to 2024 for an average price of $1,741 in major U.S. cities.
While Austin finds itself in first place, it’s not the only U.S. city where renters get more for their money.
Coming in second is Seattle, followed by Los Angeles, Nashville, Phoenix, Columbus, Dallas, San Francisco, New York and Boston.
Of those, Dallas is the only other Texas metro on the list, with an average purchasing price of $2,788 per month versus a rental price of roughly $1,481.
If you’re wondering where to find more affordable housing versus renting options, Realtor.com found Memphis, Tennessee, and Birmingham, Alabama, were cheaper for new homeowners over the past year.
Still, while Austin’s rent is less than others, the overall comparison between buying and renting continues to decrease, creating less of a divide between the two.
Boomtown is KVUE’s series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.