Buying a Home Now Costs More Than Renting in Most U.S. Cities—Including Rochester

ROCHESTER, N.Y. — A new national housing analysis shows that for most Americans—including those in upstate New York—the long-standing belief that buying a home is cheaper than renting has largely flipped.

According to a report by Construction Coverage, rising home prices and higher mortgage rates have made buying more expensive than renting in the majority of U.S. cities. As of early 2026, the typical monthly mortgage payment is about 20% higher than the median rent nationwide, a reversal from much of the 2010s when homeownership was often the more affordable option.

The shift has been driven by a combination of economic pressures. Mortgage rates have more than doubled since 2021, while home prices remain roughly 33% higher than pre-pandemic levels, significantly increasing the cost of ownership.

Few markets favor buyers

Out of more than 800 cities analyzed, only 95 still offer a financial advantage to buying over renting. Those cities are largely concentrated in lower-cost regions such as the Midwest and South—including places like Detroit and Cleveland—where buyers can save as much as 40% to 60% compared to renting.

In contrast, most cities in the Northeast—including New York—lean heavily in favor of renting.

Rochester reflects national trend

While Rochester is often considered one of the more affordable housing markets in New York, local data shows the same affordability challenges seen nationwide.

A separate 2026 analysis found that Rochester residents need to earn 28.3% more income to afford a home than to rent. The estimated income required to buy a typical home is about $76,500, compared to roughly $59,600 needed to rent.

The city’s median home price of around $250,000 remains relatively low compared to national averages, but higher borrowing costs continue to offset that advantage.

This dynamic puts pressure on first-time buyers and working families, particularly in a market where housing inventory remains tight and competition for homes persists.

Upstate affordability—relative but shrinking

Despite these challenges, Rochester and other upstate cities still rank among the more affordable housing markets in the country overall. Lower home prices compared to major metro areas like New York City have historically made homeownership more accessible.

However, analysts say affordability is now being squeezed from both sides—rents have increased in recent years, while the cost of financing a home has risen even faster.

A changing housing equation

The report underscores a broader shift in the housing market that is reshaping decisions for renters and potential buyers alike.

Experts note that while buying may still offer long-term financial benefits—such as building equity—the upfront and monthly costs are increasingly out of reach for many households.

For cities like Rochester, the result is a more complicated housing landscape: one where affordability exists relative to larger markets, but the traditional pathway from renting to owning is becoming harder to achieve.

As housing costs continue to evolve, the question facing many residents is no longer simply whether to buy or rent—but whether either option is truly affordable.