How Much of a Pay Raise Would Today’s Renters Need to Afford a Home?

Seeking a more suburban lifestyle—with the additional space, yard, and private garage often found in a single-family home—does not necessarily require stretching the budget to buy. For most families, buying is a significant financial stretch. A household that can comfortably afford rent on a single-family home would need a $14,408 pay increase to cover the monthly costs of owning one, even before setting aside money for a down payment.

Across the country, the typical rent for a single-family home is $2,243 per month, compared with $2,603 per month to own one with a 20% down payment—a difference of $360 each month. Using the common guideline of spending no more than 30% of household income on housing, a household needs to earn $89,724 to comfortably afford rent and $104,132 to buy. For many households, renting a house is a deliberate choice, not a fallback. It requires less income than ownership and leaves more room in the monthly budget.

The income increase required to buy a home is now the largest since early 2025, exceeding twice the $6,463 needed in February 2026, when mortgage rates briefly dipped below 6%. The difference varies considerably by market. It is greatest in San Jose, where the income needed to buy ($404,925) is more than twice the income needed to rent ($190,561)—a gap of $214,364. San Francisco has the next-largest gap at $139,353, followed by San Diego ($84,101), New York ($78,208) and Los Angeles ($78,003). The smallest annual differences are in Pittsburgh ($2,554), Houston ($4,500) and Cincinnati ($4,774). Buffalo is the only market where buying would not require an income increase.

Even after securing that increase, prospective buyers face another challenge: saving for a 20% down payment. According to Zillow’s 2026 Consumer Housing Trends Report, about 30% of mortgage buyers receive a gift or loan from family or friends, while 46% rely on at least two sources, including down payment assistance programs.

Beyond monthly expenses, households weighing renting against buying should consider purchase-related upfront costs, the potential to build equity and renters’ option to invest the money they would otherwise use for a down payment. Zillow’s rent-versus-buy analysis estimates the national break-even point—the time an owner must stay in a home for buying to become more advantageous than renting—at 7.8 years with a 20% down payment.

As renting a house becomes an increasingly attractive value, more people are choosing to rent. Nationwide rental demand has risen 22.1% year over year, according to the Zillow Observed Renter Demand Index (ZORDI). Demand for single-family rentals is up 24.3%, about twice the 12.1% increase for multifamily rentals.

Demand increased most in San Jose, where ZORDI is 78.9% higher than a year ago. San Francisco followed at 60.5%, then Austin at 59.6%, Miami at 51.5% and Jacksonville at 47.9%. San Jose and San Francisco are also among the markets where homebuying is least attainable and rents are climbing rapidly, rising 8.9% and 12.2%, respectively. Rent growth is more modest in Austin, Miami and Jacksonville, at 1.1%, 2.1% and 2.6%, respectively.

Some markets are bucking the national trend. ZORDI has declined year over year in Providence (-4.3%), Richmond (-1.9%), Baltimore (-1.7%), Hartford (-1.3%) and Washington, D.C. (-0.9%).

A Grand Overview

In October, the typical asking rent was $1,913, unchanged from the previous month. Before the pandemic, rents typically declined by 0.1% month over month at this time of year. Rents have risen 38.5% since the pandemic began. Compared with a year ago, rents are also up 2.9%.

Monthly rents declined in 24 major metro areas. The steepest drops were in Denver (-0.5%), Seattle (-0.4%), New York (-0.4%), Austin (-0.3%), and Boston (-0.3%). Rents were higher than a year earlier in 49 of the 50 largest metro areas. The largest annual increases were in San Francisco (12.2%), San Jose (8.9%), Virginia Beach (7.5%), Chicago (4.7%), and Milwaukee (4.7%).

In October, the typical asking rent for a single-family home was $2,243, a 0.1% increase from the previous month. Since the pandemic began, single-family rents have risen 47.1%. Rents for single-family homes are 3.2% higher than a year ago. Monthly single-family rents declined in 27 major metro areas. The steepest decreases were in Seattle (-0.5%), Denver (-0.5%), Cincinnati (-0.4%), Minneapolis (-0.4%), and Austin (-0.4%). Single-family rents are now above year-ago levels in all 50 of the largest metro areas. The greatest annual increases were recorded in San Jose (7.6%), Buffalo (6.5%), San Francisco (6.3%), Providence (6.2%), and Hartford (6.1%).

The median asking rent for multifamily homes stood at $1,744 in October, a 0.1% decline from the previous month. Since the pandemic began, multifamily rents have risen 30.1%. Multifamily rents are 2.5% higher than a year ago. Monthly multifamily rents declined in 28 major metro areas. The steepest decreases were recorded in Oklahoma City (-0.5%), Denver (-0.5%), Richmond (-0.4%), New York (-0.4%), and Orlando (-0.4%).
Rents were above year-ago levels in 46 of the 50 largest metro areas. The biggest annual increases occurred in San Francisco (13.3%), San Jose (9.4%), Virginia Beach (8.2%), Chicago (4.8%), and Milwaukee (4.5%).

The Zillow Observed Renter Demand Index (ZORDI) stood at 38 in October, declining 6.7% from the previous month. Rental demand rose 22.1% compared with the same period last year. Single-family rental demand increased 24.3% year over year, while multifamily rental demand grew 12.1%. On a monthly basis, rental demand declined in 48 major metro areas. The steepest drops were recorded in Minneapolis (-15%), Seattle (-12.6%), San Diego (-12%), Providence (-11.6%), and Kansas City (-11.1%).

Compared with a year ago, rental demand increased in 45 of the 50 largest metro areas. The strongest annual gains were in San Jose (78.9%), San Francisco (60.5%), Austin (59.6%), Miami (51.5%), and Jacksonville (47.9%). Rental demand was lower than a year ago in 5 of the 50 largest metro areas. The largest annual declines occurred in Providence (-4.3%), Richmond (-1.9%), Baltimore (-1.7%), Hartford (-1.3%), and Washington (-0.9%).

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