8% of Prospective Homeowners Are "Dual Shoppers," Checking Out Rentals as They Browse Sale Listings

"In today's market, affordability is fundamentally changing how people approach their housing search," said Zillow Senior Economist Kara Ng in a news release on Apr. 14. "More shoppers are weighing renting and buying side by side, especially as the monthly cost of owning continues to outpace rents in many markets."

As many as 8% of hopeful homeowners are still checking out rental listings even while they're exploring sale listings. In some markets, especially in California, the percentage is much higher: 12% in Los Angeles, 10.8% in San Diego and 10.1% in San Francisco, Zillow reports. But New York City stands out nationally: 29.9% of NYC home shoppers are also considering rentals.

Zillow's research is based on its own website. It hosts both sale and rental listings and can track (anonymously) who's looking at each — or both.

Dual Shoppers: Comparing Options to Make a Wise Financial Decision

Zillow dubs those checking both types of listings "dual shoppers." And traditionalists might condemn them: "If you're able to buy, buy," they might say. But it can make a lot of sense to keep one's options open.

"For the homes dual-intent shoppers consider, owning is typically $415 more expensive per month than renting, including mortgage payments, property taxes, insurance, and maintenance, after making a 20% down payment," says Zillow. "In high-cost markets like San Jose, that gap can exceed $3,400 per month."

You can see why dual shoppers are much more common in places where home values are high. In very expensive areas, a new homeowner may have to devote two-thirds of their income to housing costs, compared with one-third for renters.

Better yet, if renters live frugally, they have an opportunity to pay down debt and build a bigger down payment and savings balance, each of which could help them qualify for a lower mortgage rate when they do become homeowners.

Where Homeownership Is Less Costly Than Renting

The Construction Coverage website says, "Out of the 838 U.S. cities considered ..., only 95 are currently more affordable for buyers than renters." But those lucky enough to be living in one of those 95 metros have little need to be dual shoppers.

The top five cities where homeownership is a no-brainer are:

1. Detroit, MI
2. Cleveland, OH
3. Baltimore, MD
4. Memphis, TN
5. Philadelphia, PA

In these locales, the monthly cost of buying a home is far less than the equivalent rents.

A Major Risk for Renters

Meanwhile, the median sales price of homes sold across the U.S. has been drifting lower for the last three years, according to the Federal Reserve Bank of St. Louis (FRED). It peaked at $442,600 in the fourth quarter of 2022 and was down to $405,300 by the fourth quarter of 2025.

So renters aren't currently missing out on arguably the biggest advantage of homeownership: sitting back and watching the value of one's home rise, building one's own personal wealth. But there's a risk: When home prices do recover, they may come roaring back, disadvantaging all but the most agile first-time buyers.

What if home prices don't recover? Well, nothing's impossible, but that's highly unlikely. Relatively brief home price dips aren't uncommon within a relentlessly rising curve.

Benefits of Homeownership

Building one's net worth through accumulating home equity may be one of the big benefits of homeownership, but it's far from the only one. The Empeople Credit Union lists four others:

1. Control — Want to change the home's decor or get a pet? There's no landlord to give permission. It's up to the homeowner.
2. Consistent payments — A buyer choosing a 30-year fixed-rate loan makes the same principal and interest payment each month. There's no landlord to hike the rent.
3. Tax benefits — These aren't a given, but many homeowners get tax benefits, depending on their financial situation.
4. Stability — No more moving at the landlord's whim or every time a hike makes the rent unaffordable. A homeowner can really put down roots and become an integral part of the community.

In many places, homeownership as a part of the American dream is coming under pressure, said USA Today last week. But that's mostly because so many despair of ever being able to afford their own home.

Few would turn down the chance if buying were doable. Let's hope it won't be too long before it's achievable for many more.