All articles tagged with #renting
In California, the traditional view that homeownership is always financially advantageous is being challenged due to high prices, mortgage costs, and market uncertainties, making renting a potentially smarter financial choice for many, despite the social and personal benefits of owning a home.
Rising rental costs and limited housing availability are leading to an increase in homes without lounges, especially in London, where nearly 41% of shared housing ads lack a living room. Tenants are sacrificing communal space to reduce costs, which may contribute to social isolation and impact social interactions. Landlords turn lounges into bedrooms to cover higher mortgage costs, further reducing communal areas for tenants.
Wealthy Americans are increasingly opting to rent high-end apartments instead of buying homes due to high mortgage rates, record home prices, and attractive rental deals. The surge in apartment construction has led to numerous discounts and amenities, making renting a more appealing and cost-effective option for those with higher incomes. This trend is expected to continue until the current wave of apartment construction slows down around 2025-2026.
A growing number of people are becoming "forever renters" due to high home prices, rising mortgage rates, and the flexibility renting offers. Experts highlight both the financial drawbacks and benefits of renting versus owning, noting that the right choice depends on individual circumstances and market conditions. The trend raises questions about the primacy of homeownership in American culture and its impact on housing policies.
A new report by Realtor.com reveals that renting is now more cost-effective than buying in all 50 of the largest metro areas in the US, with rental costs dropping steadily over the last seven months. Rising home prices have led to a $1,027 per month difference between owning a starter home and renting, with Austin, Seattle, and Phoenix showing the most significant gaps. High mortgage rates and low inventory are cited as the main reasons behind the cost disparity.
A new study reveals that renting has become the more affordable option in major U.S. cities, with the monthly cost for a starter home in the largest 50 U.S. metros being roughly 60% more than the monthly rent. Dallas realtor Rogers Healy attributes this shift to a rise in consumers with a "short-term" business strategy, leading to a change in real estate dynamics across the country. He emphasizes the importance of saving up for those looking to enter the real estate market, especially as 70% of millennials aim to buy their first home in the next couple of years.
Renting has become the more affordable option in the largest 50 metros across the U.S. as mortgage rates and home prices remain high, with the monthly cost for a starter home roughly $1,027 more than the average monthly rent. While the falling cost of rent contributes to this trend, prices are still significantly higher compared to pre-pandemic times, with the U.S. median rent only $50 less than its peak in August 2022. Despite the financial advantage of renting, it does not bring the benefit of housing wealth gains over time that owning does, prompting people to consider their long-term housing plans. The top 10 metros with the largest rent savings when compared to buying include Austin, Seattle, and Phoenix.
Aziz Sunderji's analysis reveals a stark political divide between homeowners and renters in America, with homeowners being twice as likely to identify as strongly Republican and renters more likely to identify as strongly Democrat. This divide has been growing over the past few decades, with homeowners shifting to the right and renters swinging sharply to the left. The polarization is attributed to factors such as the affordability of housing in urban areas, the influence of generational preferences, and the broader cultural and political polarization in the country. This divide in the housing market is merging with America's polarized political culture, further exacerbating existing societal divisions.
The housing market continues to be the least affordable in recent memory, with home prices rising and mortgage rates doubling since early 2022. Renting has become more attractive than buying in 47 of the 50 largest metropolitan areas. County-level data from the American Community Survey shows the median home values across the U.S., with Santa Clara County, CA, having the highest median home value and Todd County, SD, having the lowest. The National Association of Realtors analyzed the data, reflecting the overall worth of homes in each area.
The housing market has become increasingly unaffordable for potential homebuyers, with the median sales price for existing homes rising over 40% and mortgage rates doubling since early 2020. As a result, renting has become a more attractive option in most major cities, with a 2023 analysis finding that renting was cheaper than buying in 47 of the 50 largest metropolitan areas. Economists predict that homeownership won't become more affordable without a significant decline in interest rates or home prices, while rents are expected to remain relatively stable due to a surge in construction of rental housing.
A man named Ben discovered that staying at certain all-inclusive resorts in Mexico and the Dominican Republic could be cheaper than his current monthly rent and living expenses, prompting him to consider the possibility of living an all-inclusive lifestyle for a similar cost.
Mortgage rates have surged past 7% as inflation remains higher than expected, dimming hopes of a rate cut by the Federal Reserve. Homebuyers are retreating from the market, with mortgage applications dropping and renting becoming a more affordable option than buying in most major metros. The cost of both owning and renting has been increasing, posing challenges for potential homebuyers.
Despite rents outpacing gains in home prices, it's still more affordable to rent than own a home in nearly 90% of U.S. counties, with both options consuming more than one-third of wages in most areas. The gap between renting and owning has narrowed, but renting remains the more affordable choice in the majority of markets, especially in counties with populations of at least 1 million. However, there are exceptions, with Riverside County, California, and the Detroit, Michigan area being more affordable for owning than renting. The least affordable rental markets are largely in the South and West, while the most affordable ones are mainly in the Midwest and South.
Despite high prices, high interest rates, and low inventory, the housing market continues to be unaffordable, making it one of the worst times to buy a home, according to real estate experts. However, with more apartments under construction than in half a century, renting an apartment is becoming easier, offering a more viable option for those not planning to stay in a house for the long term.
According to ATTOM's 2024 Rental Affordability Report, renting remains more affordable than buying a home in nearly 90% of U.S. markets, with housing costs still posing significant financial burdens for average workers. The report highlights how increasing home prices contribute to the escalation of rental costs, making both buying and renting properties challenging endeavors. Median rental rates require a smaller portion of average wages compared to homeownership expenses in 88% of U.S. counties, with the Midwest and South being the most affordable regions for renting. Conversely, Southern and Western regions have the least affordable counties for renting, with some areas requiring over 100% of average local wages to cover rent costs.