Renting is Cheaper Than Buying in All But Two Major Cities | Global News Avenue

According to a new study, in most parts of the United States, it is best to choose rent.

According to Realtor.com’s January rental report, rents are cheaper than purchased in two of the country’s 50 major metropolitan areas. A year ago, home buyers had an advantage in six metropolitan areas, indicating House ownership does not work And becoming increasingly challenging.

Rents have fallen across the country after the pandemic. Median rents in January were lower than the same time in the past two years, but at $1,703, which is still $257 higher than in January 2020.

“This relative cost advantage is one of the reasons why we expect rental households to increase and decline House ownership Realtor.com chief economist Danielle Hale said.

Only in Detroit, Pittsburgh owns cheaper than rent

Data shows that Detroit and Pittsburgh are the only two cities, and buying a house is cheaper than renting an apartment. The median price for Pittsburgh ($229,700) and Detroit ($239,950) is well below the median price for the national median listing price of $400,500.

Pittsburgh residents only need 19.7% of their median income to buy a home, the lowest share required for the top 50 metropolitan homes. Rent accounts for 23.5% of median income.

Detroit’s home ownership costs are slightly more than 20.7% than Pittsburgh’s revenue portion. However, at only 1 percentage point, the gap between this and the portion of income required for rent is even smaller.

Housing Affordability Worse in larger metro areas. In Los Angeles, nearly 75% of the salary of median wage income buys a home, while rents are 36%. Several other California cities, including Riverside, Sacramento, San Diego, San Jose and San Francisco, require more than 40% of home ownership. higher Mortgage Ratelimited inventory and rising home value are the main factors driving the increase in home purchase costs.

As rents get cheaper, renters live longer

Rents have become cheaper in several major cities including Memphis, Tennessee, Los Angeles, Las Vegas, Houston, Chicago and Charlotte, according to Realtor.com data. Rental Information A study by Point2Homes shows that leasing offers higher value and many people choose to stay in these properties for longer.

According to the study, comparing Census Bureau data from 2017 and 2022, the number of tenants who moved one year or less fell by nearly 5%, while the number of renters stayed on their properties for five or more years. point.