In December, RealtyTrac released its 2016 Rental Affordability Analysis, indicating that buying a home is still more affordable than renting in 58% of U.S. housing markets – despite home price appreciation outpacing rent growth in 55% of markets. This article from Kriston Capps of CityLab looks into the numbers.
If your New Year’s Resolution was to find better financial balance in 2016, especially when it comes to how much of your paycheck goes into your rent, you may need to consider moving, buying a house, or both. Happy New Year!
That’s the takeaway from a new report from RealtyTrac that predicts that buying will continue to be cheaper than renting in more than half of U.S. housing markets in 2016. New year, same deal: Census data released in December show that rental costs are rising nationwide while new housing starts are miserly, even though the costs of home ownership are still low in many places.
This trend will persist into 2016. Using rental data from the U.S. Department of Housing and Urban Development and wage data from the U.S. Bureau of Labor Statistics, RealtyTrac predicts that buying will be a more affordable option than renting in 58 percent of markets, but that rents will outpace wage growth in 57 percent of markets.
“In markets where home prices are still relatively affordable, 2016 may be a good time for some renters to take the plunge into homeownership before rising prices and possibly rising interest rates make it increasingly tougher to afford to buy a home,” said Daren Blomquist, vice president at RealtyTrac, in the report.
