The 5 best cities in America for renters — and 5 where you should buy instead
Some U.S. cities reward renting, others make buying the smarter bet. Here’s where the numbers favor each move, according to new 2025 data
Rising prices and mortgage rates have turned what once was the dream of homeownership into a financial riddle.
Questions like is it smarter to rent longer or buy sooner now depend less on aspiration and more on geography.
In 2025, according to Bankrate’s affordability study, buying a home now costs 38% more per month than renting in the average U.S. metro. However, that average hides wide swings.
In some cities, rent growth has cooled and vacancy rates are rising. In others, home prices remain surprisingly within reach.
Based on this shift, the new divide isn’t simply between renters and buyers. Now it's between smart renters and smart buyers. Some markets reward patience and flexibility, while others reward the long view.
The trick is knowing which cities still give you leverage, whether that’s negotiating a lease or locking in a mortgage before the next rate swing.
Here are 5 cities worth the mortgage commitment, and 5 that are more renter-friendly.
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Rent: Minneapolis, Minnesota
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According to The New York Post, Minneapolis tops the list of best U.S. cities for renters in 2025, thanks to moderate rent increases and strong tenant protections. The city’s average rent-to-income ratio hovers around 23%, well below the national average. Add in reliable public transit and a high quality of life, and the Midwest looks like a renter’s bargain.
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Rent: Madison, Wisconsin
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WalletHub ranks Madison among the most balanced housing markets, where rental affordability meets job security. The influx of university talent and tech startups has stabilized demand without spiking prices. For renters seeking community and livability, Madison is proof that affordability is still possible.
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Rent: Raleigh, North Carolina
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New American Funding notes Raleigh’s rental market remains accessible, even as its tech corridor expands. Median rents are up just 2% year-over-year, far below the national average. That balance of growth and restraint makes Raleigh one of the more sustainable places to choose rent over home ownership.
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Rent: Omaha, Nebraska
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According to LendingTree, Omaha’s monthly rent sits nearly $500 below comparable metros, offering rare breathing room for middle-income tenants. The city’s low unemployment rate and steady job growth add extra stability. For those who value predictability over hype, Omaha delivers.
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Rent: Salt Lake City, Utah
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The New York Post also highlights Salt Lake City for its renter-friendly mix of new inventory and growing urban amenities. Developers continue to build, keeping supply ahead of demand. In this instance, the mountains come with Wi-Fi and reasonable rent.
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Buy: Pittsburgh, Pennsylvania
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According to Bankrate, Pittsburgh remains one of the few metros where owning costs less than renting. Median home prices hover around $180,000, with strong appreciation potential. For buyers tired of being priced out elsewhere, the Steel City might be a smart option.
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Buy: Cleveland, Ohio
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Mortgage Professional America lists Cleveland among the cheapest cities to buy, with average home prices below $160,000. Local investment in health care and tech is driving slow but steady growth. Here, “buy low” hasn’t lost its meaning, or its payoff.
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Buy: Tampa, Florida
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WalletHub names Tampa one of 2025’s healthiest real-estate markets for long-term buyers. Despite short-term volatility, migration trends continue to favor Florida metros. Owning here could offer a hedge against rising rents, as well as a front-row seat to the state’s next growth cycle.
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Buy: Kansas City, Missouri
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According to New American Funding, Kansas City ranks high for first-time buyers with modest incomes. Its mix of affordable new construction and stable employment makes buying less speculative than in other, pricier markets. It’s one of the last metros where “starter home” isn’t a historical term.
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Buy: Charlotte, North Carolina
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LendingTree finds Charlotte nearing a tipping point, where monthly ownership costs are only $70 higher than renting. With rapid population and corporate expansion, buying now may beat waiting.