Higher Rents Make Buying The Affordable Choice
Rents recently hit new highs in 40 of the 50 largest U.S. cities, according to a new analysis from the National Association of Realtors' consumer website. The report found that, nationally, rents were up almost 10 percent over where they were last year at the same time.
But while the news comes at a time when home prices have also been on the rise, historically low mortgage rates have helped counter the effect of recent home-price increases. So much so, that Danielle Hale, the website's chief economist, says buying a starter home actually comes with a lower monthly price tag than renting in many cities.
“Sky-high rents and historically low interest rates have made the monthly cost to buy a starter home lower than renting one in nearly half of the markets across the U.S.,” Hale said. It's true.
The monthly cost of owning a starter home is now lower than renting a similar-sized place in 24 of the 50 largest metros, including in cities like Orlando, Cleveland, Tampa Bay, Baltimore, and Riverside, CA.