First and foremost, a very Happy New Year to you all from the First International Title family. May 2016 be safe, healthy and prosperous for all of us!
As we dive into 2016, it should be noted that RealtyTrac is now saying that buying is still more affordable than renting in more than 50 percent of U.S. housing markets.
According to its 2016 Rental Affordability Analysis, RealtyTrac states this trend is developing despite the fact home price appreciation is outpacing rent growth in 55 percent of markets.
The study indicated renting was more affordable than buying in 213 of the 504 counties analyzed, but buying was more affordable than renting in the rest of the counties including those in Chicago, Phoenix, Miami, Southern California, Las Vegas and Detroit.
“Renters in 2016 will be caught between a rock and hard place, with rents becoming less affordable as they rise faster than wages, but home prices rising even faster than rents,” said RealtyTrac Vice President Daren Blomquist. “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.”
As always, we advise that you do your due diligence when it comes to weighing the options of buying versus renting. Should you need any assistance, please reach out and we’ll certainly lend a capable hand.