Better to Buy or Rent in 2025? Insights for International Real Estate Investors

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For international real estate investors, a key question is always: Is it better to buy or rent in the U.S. market? Whether Americans are choosing to rent or purchase their primary residence gives us a clear indicator as to the prospects for the U.S. real estate market. More homebuyers means rising prices. More renters means better cashflow. A new report from ATTOM helps answer this question for 2025.

This article shares key findings from ATTOM’s latest housing affordability report. We will look at which U.S. counties are better for buying versus renting, with tables for all the important data. Most importantly, we will explain what this means for you, the real estate investor, planning your U.S. property investment.

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Key Takeaways: Rent vs. Buy for Investors

• Renting Often Cheaper: In 2025, renting is more affordable than buying in 95% of U.S. counties. This is a major trend.

• Few Buying Opportunities: Only a small number of counties (5%) are cheaper to buy than to rent.

• Top Buy-Friendly Counties: Places like Fayette County, PA, and Wayne County, MI (Detroit), offer more affordable buying conditions. These could be good for consistent cash flow rentals.

• Top Rent-Friendly Counties: In areas like Maricopa County, AZ (Phoenix), and King County, WA (Seattle), renting is much cheaper. This creates high demand for rental properties.

• Investor Strategy: This data helps international investors find markets. They can focus on areas where renting is strong. This ensures consistent cash flow. They can also look for undervalued buying opportunities. This supports long-term wealth.

Related: Top U.S. Real Estate Markets for Investors in 2025: States, Cities, and Neighbourhoods

The Big Question: Buy or Rent in 2025?

The decision to buy or rent is a big one for many people. It also tells us a lot about a local housing market. ATTOM, a leading property data company, looked at this for 2025. They compared the costs of owning a home versus renting in 553 U.S. counties.

Their main finding is clear:

• Renting is more affordable in almost all places. In 95% of the counties they studied, it was cheaper to rent than to buy a median-priced home.

• Buying is cheaper in very few places. Only 5% of counties favoured buying over renting.

This means that for most Americans, renting is the more budget-friendly choice right now. This trend has big effects for international real estate investors. It shapes where the demand for rental properties will be highest. The findings in this report were also echoed in another analysis recently carried out by SmartAsset.

Related: Top 5 Least (and Most) Affordable U.S. Housing Markets

Where Buying is Still Cheaper: Top 5 Counties

Even though renting is often cheaper, there are still some counties where buying a home makes more financial sense. For international real estate investors, these areas might offer good chances to buy properties at lower costs. This can lead to better consistent cash flow rentals.

Here are the top 5 counties where it was more affordable to buy a home than to rent in 2025:

Source: ATTOM Data Solutions – Better to Buy or Rent in 2025?

What this means for investors:

• These counties might offer lower entry prices for buying rental properties.

• Lower purchase costs can lead to higher rental yields. This helps your cashflow .

• These areas could be good for investors looking for undervalued markets. They offer potential for long-term price appreciation.

Related: U.S. Housing Affordability is Getting Worse: What You Need to Know

Where Renting Wins: Top 5 Counties (Least Affordable to Buy)

In most U.S. counties, renting is more affordable than buying. This is especially true in some of the country’s biggest and most popular areas. For international real estate investors, these markets show very high demand for rental properties. This is because many people cannot afford to buy.

Here are the top 5 counties where it was least affordable to buy (meaning most affordable to rent) in 2025:

Source: ATTOM Data Solutions – Better to Buy or Rent in 2025?

What this means for investors:

• These markets have a large and growing pool of renters. This is because buying a home is very expensive.

• High rental demand can lead to low vacancy rates. This helps ensure consistent cash flow.

• While property prices are high, the strong rental market can still make these areas attractive for investors. You need to carefully check if rental income can cover the high costs.

Related: 10 U.S. States Where Single Income Buyers can Afford Homes

What Makes Housing Affordable (or Not)?

ATTOM’s report looks at several factors to decide if it’s better to buy or rent. These factors help international investors understand the full picture of housing costs.

Here are the key factors ATTOM considered:

Related: Renting Just Got Cheaper in These 12 U.S. Cities in May

Strategic Insights for International Real Estate Investors

The ATTOM report offers clear guidance for international real estate investors. It helps you identify opportunities for consistent cash flow rentals and long-term wealth growth.

Capitalizing on Rental Demand

In markets where renting is much more affordable than buying, the demand for rental properties will be high. This is a strong signal for investors:

• High Occupancy: Your rental units are likely to stay filled. This means steady income.

• Stable Rental Income: Strong demand supports consistent rental rates. This is key for consistent cash flow rentals.

• Focus on Fundamentals: In these areas, focus on properties that appeal to the large renter base. Think about location, amenities, and property condition.

Finding Value in Buying-Friendly Markets

The few counties where buying is more affordable offer a different kind of opportunity:

• Potential for Undervalued Assets: You might find properties at a lower cost relative to their long-term value.

• Higher Yield Potential: Lower purchase prices can mean better returns on your investment. This is good for cash flow.

• Future Appreciation: As these markets grow, the value of your property could increase steadily, adding to your long-term wealth.

Related: Top 20 Most Affordable U.S. Cities for Renters in 2025

Smart Investor Moves

For international investors to succeed:

• Do Your Research: Look closely at local market data. Don’t just rely on national averages.

• Partner Locally: Work with experienced local real estate agents and property managers. They understand the nuances of the market. They can help manage your cash flow rentals effectively.

• Consider Financing Options: Explore specialized financing for non-residents. This can help you access the U.S. market.

• Think Long-Term: Real estate investment is a long game. Focus on markets that offer stability and consistent growth over many years.

Related: Rents are Soaring in These 10 U.S. Cities

Conclusion: Making Informed Investment Decisions

The ATTOM report for 2025 provides valuable insights into the U.S. housing market. It clearly shows that renting is the more affordable choice in most counties. This trend creates significant opportunities for international real estate investors focused on rental properties.

By understanding these affordability dynamics, you can strategically choose markets. You can focus on areas with strong rental demand for consistent cash flow rentals. Or you can find undervalued buying opportunities for long-term price appreciation. With smart planning and local expertise, you can build long-term wealth in the dynamic U.S. real estate market.

Previous Article: NAR Expects House Price Growth in 2025 and 2026

Frequently Asked Questions (FAQs) About U.S. Housing Affordability for Investors

• Q1: What is the main finding of the ATTOM report on U.S. housing affordability in 2025? A1: The main finding is that renting is more affordable than buying a median-priced home in 95% of the U.S. counties analyzed. Only 5% of counties favored buying.

• Q2: Which U.S. counties are most affordable for buying a home in 2025? A2: According to ATTOM, the top 5 most affordable counties for buying are Fayette County, PA; Schuylkill County, PA; Baltimore City/County, MD; Wayne County, MI (Detroit); and Cuyahoga County, OH (Cleveland).

• Q3: Which U.S. counties are least affordable for buying (most affordable for renting) in 2025? A3: The top 5 least affordable counties for buying (meaning most affordable for renting) are Maricopa County, AZ (Phoenix); Mecklenburg County, NC (Charlotte); Travis County, TX (Austin); King County, WA (Seattle); and Orange County, CA (Santa Ana).

• Q4: How does the “rent vs. buy” data help international real estate investors? A4: This data helps investors identify markets with high rental demand (where buying is less affordable). This can lead to more consistent cash flow rentals. It also points to areas where buying might offer better value for long-term price appreciation.

• Q5: What factors does ATTOM consider when comparing buying vs. renting affordability? A5: ATTOM considers median home prices, average fair market rents for three-bedroom properties, 30-year fixed mortgage rates, property taxes, home insurance, and maintenance costs.

• Q6: Where can I find the full ATTOM report on housing affordability? A6: You can find the complete report and detailed analysis on the ATTOM Data Solutions website: ATTOM Data Solutions – Better to Buy or Rent in 2025?.