As developers weigh their next investments, a close look at the leading cities for renting and homeownership can offer valuable insight into where demand is strongest and what housing opportunities are most likely to yield returns. The housing landscape across the United States is marked by stark contrasts, with some urban centers dominated by renters and others by homeowners, each shaped by local economics, amenities, and lifestyle preferences.

The data and statistics were provided by Apartments.com, a source for rental market information.

Miami

Miami stands out as a city where renting is the prevailing choice, with nearly three-quarters of residents opting to lease rather than buy. The city’s 73 percent renter rate is fueled by high home prices—where the median home costs $649,900—and a dynamic urban culture that draws those seeking flexibility.

Average rent in Miami is $2,160 a month, notably lower than the typical mortgage payment of $3,390, and the city’s vacancy rate of 6.2 percent, below the national average, underscores the strong demand for rentals. Miami’s neighborhoods offer a broad mix, from bustling downtown areas to quieter, more affordable enclaves, while amenities like swimming pools and on-site parking remain in high demand. The city’s expanding job market in finance, technology, and hospitality continues to attract new residents.

New York City

New York City, where more than eight million people live, is another metropolis where renting is the norm. Seventy-one percent of New Yorkers take part in this lifestyle, a figure shaped by a median home price of $875,000 and a cost of living nearly 130 percent above the national average. The average rent is $3,954 per month, still less than the average monthly mortgage of $4,570.

With a vacancy rate of just 2.7 percent, competition for apartments is intense. New York’s extensive public transit system and diverse neighborhoods make it a magnet for renters. Then there’s its robust economy—anchored by finance, tech, and healthcare—ensures steady demand for housing.

Boston

Boston also sees renters in the majority, with 69 percent of residents leasing their homes. The average rent in Boston is $3,481, while the median home price has reached $899,000. The city’s cost of living is nearly 46 percent above the national average, and the vacancy rate is 5.6 percent. Boston’s historic neighborhoods, proximity to major employers and universities, and reliable public transit system all contribute to its appeal for renters.

Los Angeles

On the West Coast, Los Angeles and San Francisco are similarly dominated by renters. In Los Angeles, 65 percent of residents rent, drawn by an average rent of $2,165 and a median home price of $1.09 million. The city’s cost of living is 50 percent above the national average, and the vacancy rate is 4.8 percent. Los Angeles offers a wide range of neighborhoods, with parking and garages among the most sought-after amenities due to the city’s car-centric layout.

San Francisco

San Francisco, where 67 percent of residents rent, faces high demand and limited supply. The average rent is $2,999, and the median home price is $1.35 million. The city’s cost of living is more than 70 percent above the national average, and the vacancy rate has dropped to 5.1 percent.

San Francisco has long been a magnet for renters, offering an urban lifestyle rich with culture, convenience, and opportunity. With 67 percent of its residents renting, the city’s high cost of homeownership, where the median home price has reached $1.35 million and the average monthly mortgage is $7,050, makes renting the more accessible option for many.

The average rent is $2,999 per month, a figure that, while substantial, is far less daunting than the cost of buying a home. As demand rises and the vacancy rate drops to 5.1 percent, new residential developments are in the pipeline to meet the city’s growing needs.

San Francisco’s proximity to major tech employers like Uber and Salesforce in nearby Silicon Valley adds another layer of convenience, especially for professionals. Despite the city’s famous hills, walking and biking remain popular, and robust public transit options—including BART, buses, Muni Metro and streetcars—make it easy to get around. Access to transit is a top priority for apartment hunters. Also, parking is at a premium, as many renters seek communities that offer garages or dedicated spaces.

Mesa

In contrast, several cities are known for higher rates of homeownership, thanks to more affordable housing and suburban environments. Mesa, Arizona, leads the way, with 63 percent of residents owning their homes. The median home price in Mesa is $440,000, and the average monthly mortgage is $2,300. The city’s vacancy rate is 11.3 percent, offering ample options for both renters and buyers. Mesa’s tranquil atmosphere and proximity to Phoenix make it appealing for families and commuters.

Albuquerque

Albuquerque, New Mexico, also has a majority of homeowners, with 57 percent of residents fitting this category. The median home price is $365,000, and the average mortgage is $1,910 per month. The cost of living is 5.6 percent below the national average, and the vacancy rate is 7.5 percent. Albuquerque’s affordable housing and diverse economy make it a strong market for buyers.

Colorado Springs

Colorado Springs, Colorado, is home to 59 percent of residents who own, offering a median home price of $479,900 and an average mortgage of $2,510. The vacancy rate is high at 12.6 percent, leading to competitive rent concessions and lower prices. The city’s arts scene, military presence, and access to outdoor recreation continue to attract new residents.

Louisville

Louisville, Kentucky, and El Paso, Texas, round out the list of cities where homeownership is most common. In Louisville, 58 percent of residents are homeowners; the median home price is $269,000, with a cost of living that’s 5.5 percent below the national average.

El Paso

Some 58 percent in El Paso own their homes, offering one of the lowest costs of living in the country at 11.6 percent below the national average, with a median price of $274,500 and a vacancy rate of 7.1 percent.  – more at globest.com

 

---

---

Thinking about investing in Phoenix real estate? Have a property to sell in Arizona? Tell us what you’re searching for. Connect with us to buy, sell, or lease multifamily, residential and commercial real estate in Phoenix, and across Arizona. Let’s work together.

Natan Jacobs, Vestis Group

Call: 602-281-6202

Email: Info@Vestis-Group.com