PORTLAND, Ore. (KOIN) – In Portland, the monthly cost of renting a home is lower than buying a starter home, according to a recently released report. 

In its June Rental Report, Realtor.com says this is the case for most major metropolitan areas. 

In 28 of the 50 largest metropolitan areas in the U.S., the cost to rent each month is lower than the average monthly costs for homeowners. Realtor.com says this is a stark difference from what the data showed earlier in 2022. 

Researchers conducted the same analysis in January and found that just 24 markets favored renting. 

There are several factors that contributed to this change in the last six months. 

First, year-over-year rent growth peaked in January at 17.3% and has decreased each month since then. Plus, rent in June was just 6.3% higher than it was in January. 

However, the biggest driver is the fact that financing a home purchase has skyrocketed within the last six months. The average 30-year fixed mortgage rate went from 3.45% in January to 5.52% in June. 

Realtor.com looked at listings of 0- to 2-bedroom homes to find the median listing price for “starter” homes. Researchers assumed a 7% down payment, based on the national average since 2018, and used the average mortgage rate to determine a monthly mortgage payment. 

They then added the cost of homeowner association fees, taxes and homeowner’s insurance averages in each metropolitan area. 

This figure was then compared to the median rent price in each area. 

In the Portland metro area, which includes Vancouver and Hillsboro, Realtor.com determined the median monthly rent price in June was $1,833. The monthly cost to buy a home was $2,961, a 61.6% difference. 

Among the 50 largest metropolitan areas in the U.S. Portland’s percent difference between renting and buying was the sixth highest. Austin, San Francisco, Seattle, New York and San Jose all had even great differences between the monthly rent price and the cost of buying a home.