Rents are not just making a rebound after a dip during the pandemic. They are blowing right past the monthly cost of buying a home in more than half of the largest U.S. markets. A new realtor.com report says they’ve been rising so fast, it’s now more affordable to buy a home in 26 U.S. cities, than it is to rent. (1)Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. January was the eighth month in a row that rents have shown double digit growth in the U.S. Realtor.com says the year-over-year increase hit 19.8% in January. That kind of growth is almost double the monthly cost increase for buying a home – which started the year at 11%.Rent Growth BreakdownRents have risen the most for studio apartments. Those rents are up 21% or about $256 a month, compared to a year earlier. One- and two-bedroom units are up 19.2% which adds about $266 dollars to the monthly rent for a one-bedroom and about $323 for a two-bedroom.Higher rents mean that the monthly cost of a starter home is about 20.6% lower than it is for renting in 26 of the 50 largest metros. That translates to a $323 monthly savings, for home buyers in those metros.Top Three Buying MarketsThe realtor.com report shows that the three top markets that favor buying over renting provide an even bigger discount.1 - In Birmingham, Alabama, the monthly cost for a starter home is just $668 compared to a median rent of $1,201. That’s a 44.3% savings or about $533 a month.2 - In Cleveland, Ohio, the monthly buying cost is $809 versus $1,325 a month for rent. That’s a 38.9% difference or about $516.3 - In Pittsburgh, Pennsylvania, homebuyers are paying $945 a month compared to a median monthly rent of $1,530. That’s a 38.3% savings or about $585.But realtor.com says the trend is not universal. While it’s pricier to rent than to buy in 26 metros, it’s still more affordable to rent in 24 others. Realtor.com says the price difference in those metros makes it about 24.8% more expensive to buy than to rent, giving renters a monthly savings of about $536. In cities with a lot of big tech, buyers are shelling out even more money per month. That cost is about 41.6% higher per month than renting. Rent vs. Buying in Tech MarketsThe top three tech metros where buying is a whole lot more expensive than renting include: 1 - Austin, Texas, where the monthly cost of buying is about 76.1% higher than renting.2 - New York City where buyers pay an extra 52.4% month over renting.3 - And San Francisco where the monthly cost of buying is about 49.1% more expensive.Realtor.com’s chief economist Danielle Hale says: “While both rental and home-buying costs are rising, a number of factors could tip the affordability scale in favor of first-time buying for many Americans this year. She says: “Rents are forecasted to outpace listing price growth in 2022 and are already accelerating across all unit sizes.” She also says that surveys show a majority of landlords plan to raise their rental rates even higher this year.Florida Metros Top Rent Growth ListThe metros where rents are rising the fastest are all in Florida. Realtor.com’s list of the Top 10 Markets for Rent Increases in January 2022 list Miami, Tampa, Orlando, and Jacksonville as the top four. We’ll have a link to that report in the show notes at newsforinvestors.com.You can also visit our Learning Center while you are there and join our network for access to our Investor Portal. It’s free to join. Members can look at sample property pro-formas, and connect with our experienced investment counselors. The portal also offers access to property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more. Thanks for listening, and please remember to hit the subscribe button, and leave a review!I'm Kathy Fettke.Links:1 -https://www.realtor.com/research/january-2022-rent/