For real estate investors and developers, market timing is everything. The latest Realtor.com® January 2025 Rental Report reveals a rare opportunity: Pittsburgh and Detroit are the only two major U.S. metros where buying is still cheaper than renting—but this window is closing fast.

With home prices rising and mortgage rates fluctuating, investors who act now could capitalize on this temporary affordability gap before the balance shifts back in favor of renting.

Why Buying Still Makes Sense in Pittsburgh & Detroit

Unlike most major metros—where homeownership has become less affordable than renting—Pittsburgh and Detroit have defied the trend due to their low median home prices:

📍 Pittsburgh

• Median home list price: $229,700

• Monthly mortgage payment: $1,199

• Median rent: $1,413

• Share of income spent on homeownership: 19.7%

• Share of income spent on renting: 23.5%

📍 Detroit

• Median home list price: $239,950

• Monthly mortgage payment: $1,252

• Median rent: $1,313

• Share of income spent on homeownership: 1% lower than renting

For investors, these numbers highlight an opportunity to buy and hold rental properties with strong cash flow potential, as well as a chance to build equity in markets that remain undervalued compared to national trends.

Why This Won’t Last Forever

While these two markets still favor homebuyers, that’s likely to change soon. According to Realtor.com’s analysis, the affordability gap between renting and buying is shrinking in both cities due to:

🔺 Rising home prices – Demand is pushing up property values, narrowing the affordability advantage of buying.

🔺 Mortgage rates remaining elevated – The cost of financing a home remains high, making ownership more expensive.

🔺 Falling rental prices – Rents have stabilized or declined slightly in some markets, reducing the financial incentive to buy.

“If this trend continues, Pittsburgh will become yet another metro where renting is more affordable than buying,” warns Realtor.com senior economist Joel Berner.

For investors, this means that now is the time to act before Pittsburgh and Detroit follow the rest of the country in favoring renters over buyers.

The Bigger Picture: Renting vs. Buying in Major U.S. Metros

Across the U.S., rental prices have been falling for 18 straight months, yet homeownership remains significantly more expensive in most markets:

🏡 Median U.S. home list price (Jan. 2025): $400,500

💰 Monthly mortgage payment: $2,123

🏠 Median U.S. rent: $1,703

📉 Mortgage payments are nearly 25% higher than rent

Even though rents have declined slightly, they remain $257 higher than pre-pandemic levels, keeping rental demand strong. This presents opportunities for investors to cater to long-term renters in key markets where affordability remains a challenge.

Most & Least Affordable Cities for Investors

A property is considered affordable when housing costs (mortgage or rent) remain below 30% of household income.

Here’s how affordability compares across major metros:

💰 Most Affordable Cities to Rent or Buy

✅ Oklahoma City, OK – Renters spend just 17.1% of income on rent, while homeownership costs 27.4%.

✅ Pittsburgh, PA – Homeownership remains cheaper than renting (19.7% vs. 23.5% of income).

✅ Detroit, MI – Buyers spend 1% less of their income on housing than renters.

🚨 Least Affordable Cities for Renters & Buyers

❌ Miami & NYC – Renters spend 37.6% of income on housing, far above the affordability threshold.

❌ Los Angeles – Homeownership costs a staggering 74.7% of income, making it the least affordable market for buyers.

❌ San Diego – The second-least affordable market for homebuyers, with ownership consuming 57.7% of income.

For investors, this data underscores the importance of market selection. Rust Belt cities like Pittsburgh and Detroit offer stronger cash flow potential than high-cost coastal metros, where both renters and buyers are increasingly cost-burdened.

Key Takeaways for Real Estate Investors & Developers

1️⃣ Pittsburgh & Detroit remain two of the last markets where buying is cheaper than renting—but this won’t last forever.

2️⃣ Home price appreciation is accelerating, making it a prime time for investors to lock in lower prices before affordability declines.

3️⃣ Rents remain strong across the U.S., supporting long-term buy-and-hold strategies for real estate investors.

4️⃣ Coastal markets continue to be unaffordable for both renters and buyers, pushing demand toward more affordable Midwestern and Southern markets.

Final Thoughts: Should Investors Buy Now?

For real estate investors, the Pittsburgh and Detroit markets offer a limited-time buying opportunity before affordability shifts back in favor of renting.

✅ If you’re a buy-and-hold investor, these cities still offer favorable cash flow potential compared to most U.S. metros.

✅ If you’re considering flipping properties, rising home prices could provide short-term appreciation gains.

✅ If you’re watching from the sidelines, understand that waiting too long could mean missing out on historically low purchase prices in these markets.

📢 What do you think? Are Pittsburgh and Detroit still solid investment opportunities, or is the window closing? Drop your thoughts in the comments!