Buying a home is cheaper than renting in only 4 U.S. cities.

Even though renting remains prohibitively expensive in most major U.S. cities, buying a home is an even more expensive transaction.

A new study by real estate company Redfin has found that in just four major metropolitan areas, buying a home is now cheaper than renting. Jason Alim, vice president of real estate operations at Redfin, said this in an interview with CBS News.

According to the company's analysis, all other major cities - from San Jose, California, to Pittsburgh, Pennsylvania - are financially better off renting.

Detroit, Philadelphia, Cleveland and Houston

Detroit, Philadelphia, Cleveland &''Houston did not experience the same increase in home prices during the pandemic as other major U.S. cities, so they are currently more affordable for buyers, Alim explained.

Home prices across the country rose by double-digit percentages during the pandemic, and now potential buyers are facing another hit to their wallets due to rising mortgage interest rates. "The problem is the rates - they need to be in the 4% to 3% range" for buying a home to be cheaper than renting in most cities, Alim said.

This week, the typical 30-year mortgage rate topped 7%, meaning financing a home purchase will now cost twice as much as it did in 2021 and early 2022, when rates were around 3%''or even below.