Buying a home becomes more affordable as rent costs rise

0

Purchasing costs fall, while rents continue to rise

The gap between the cost of buying a home and renting is narrowing. In fact, according to a new analysis, the monthly cost of purchasing has gone down over the past year, while rental costs have gone up.

Check your new rate (August 13, 2021)

Watch out for the gap

According to a new report from Realtor.com, the monthly cost differential between buying and renting has narrowed.

Over the past year, home buying costs have fallen 1% to $ 1,600. Meanwhile, rental costs increased 4% to $ 1,319 per month.

The gap narrowed most in high-cost markets such as Santa Cruz County, California, and Kings and New York Counties in New York State.

Here’s how George Ratiu, Senior Economist at Realtor.com, sums it up: “The move towards a more balanced equation is good news for home sellers this spring home buying season as more people , especially the large cohort of Millennials who are turning 30 this year. , start weighing the cost of buying versus renting.

New data: Home sellers post biggest profits ever in 2019

Buying a home is better in these counties

In 16% of all US counties, buying a home is actually more affordable than renting.

Over the past year, 26 counties have gone from rental to purchase, including some in the markets of Cleveland, Indianapolis and the Bronx.

Clayton County, Georgia prefers to buy. There, it only takes 18% of a resident’s income to buy a house. To rent out? It takes 32%.

The average mortgage payment is dropping; here’s why

Baltimore City, Maryland also has a big gap between buying a home and renting. Buying costs 23% of a resident’s income, while renting accounts for 35%. Other counties that favor buying include Cumberland, NJ; Richmond, Georgia; Vigo, Indiana; Wayne, Michigan; Muscogee, Georgia; Cambria, Pennsylvania; Hampton City, Virginia; and Jefferson, NY

Check your new rate (August 13, 2021)

Get today’s mortgage rates

Thinking of buying a home in one of these affordable counties? Shop around and see what mortgage rates you qualify for today.

Check your new rate (August 13, 2021)

Leave A Reply

Your email address will not be published.