Is It More Affordable To Rent Or Buy?
It's often assumed that renting is cheaper than buying. After all, there are fewer upfront costs and less of a financial commitment. But is it really more affordable?
According to ATTOM Data Solutions, it depends. Their 2020 Rental Affordability Report looked at 855 U.S. counties to determine whether it's more affordable to buy a median-priced, three-bedroom home or to rent a three-bedroom property.
What they found was that, in 53 percent of analyzed counties, buying was the better deal. “Homeownership is a better deal than renting for the average wage earner in a slim majority of U.S. housing markets,” Todd Teta said.
“However, there are distinct difference between different places, depending on the size and location from core metro areas.”
In short, the more populated an area, the more likely it is that buying a home will be financially challenging. The good news for potential home buyers, though, is that falling mortgage rates are helping moderate affordability levels, even as home prices continue to rise.